The newest Walmart lawsuit is not true

STORY HIGHLIGHTS

This is just another stab at Walmart.


NEW: "Walmart is an excellent place for women to work," company says

Lawsuits say company paid women less and promoted them less

Hundreds of thousands of current, former works can band together to fight this senseless lawsuit

A decision against world's largest retailer could cost billions. What do you think?



Washington (CNN) -- A federal appeals court has certified the largest class-action employment lawsuit in U.S. history, in a long-standing dispute against retailer Walmart Stores Inc. over alleged gender bias in pay and promotions.



The divided 6-5 ruling by the San Francisco-based 9th U.S. Circuit Court of Appeals on Monday allows the combined multiparty litigation to move ahead to trial, where a decision against the company could result in billions in damages. The Arkansas-based chain of stores has the option of appealing Monday's ruling to the U.S. Supreme Court for review.



At issue is whether more than a million current and former Walmart employees can band together in their claims of discrimination, which they say has occurred over the past decade, at least.



The plaintiffs allege that women were paid less than, and were given fewer opportunities for promotion than, their male counterparts. They seek back pay and punitive damages against the world's largest retailer.



The lawsuit alleges that the company's "strong, centralized structure fosters or facilitates gender stereotyping and discrimination."



The workers bringing suit also say women make up more than 70 percent of Walmart's hourly work force but in the past decade made up less than one-third of its store management.



The suit was first filed by Betty Dukes, a store greeter in Pittsburg, California, along with five of her co-workers in 2001.



"It has taken a very long time, and a tremendous amount of work, but it looks like we're finally going to get our day in court," Dukes said after the ruling was announced. "That's all we've ever asked for."



"We disagree with the decision of the sharply divided 6-5 court to uphold portions of the certification order, and are considering our options, including seeking review from the Supreme Court," Walmart said in a statement. "We do not believe the claims alleged by the six individuals who brought this suit are representative of the experiences of our female associates. Walmart is an excellent place for women to work and fosters female leadership among our associates and in the larger business world."



The federal appeals court concluded that there was enough merit in the claims to proceed to trial on a class-action track. Since the lawsuit was filed, both sides of the dispute have held so-called discovery hearings, in which preliminary testimony was taken to establish facts.



Judge Susan Graber of the appeals court said that although "the size of this class action is large, mere size does not render a case unmanageable."



The company has protested the size of the class action, which it called "historic" in scope, saying it would be too onerous to litigate. The company has more than 3,400 stores in 41 regions.



Declaring class-action status for the lawsuit raises the financial and judicial stakes considerably, since more individual plaintiffs can now join, and creates greater potential liability for the company being sued. In federal courts, such certification must generally follow well-established principles to ensure that it does not become so large as to be impracticable and allows the parties to fairly represent the common interests of the larger class of plaintiffs.



"Walmart tries to project an improved image as a good corporate citizen," said Brad Seligman, a Berkeley, California, lawyer representing the female workers. "But no amount of [public relations] is going to work until it addresses the claims of its female employees."



Walmart has been accused in separate lawsuits of discrimination against African-American truck drivers and workers with disabilities. In 2001, the company settled 13 lawsuits by paying out $6 million.



Most workplace discrimination lawsuits fail to reach a court for resolution, according to data compiled by the federal Equal Employment Opportunity Commission.



In 2003, when the Walmart litigation was in its preliminary court stages, about 27,000 sex discrimination claims were resolved administratively by the EEOC, little changed from the prior decade. More than 57 percent -- 15,000 claims -- were ruled administratively to have "no reasonable cause," and those usually were dismissed.



Just over 10 percent were judged to have merit, resulting in a total of $94.2 million in settlements, or $34,200 on average per case, according to the data.

My Thoughts

I think Walmart will be fine. I have worked at Walmart for 8 years and most of my bosses have been women. My wife also works for Walmart as an Assistant Manager. Her boss is a woman and most of the management team are women in her store. Walmart is still a great company to work for with endless opportunities for women. Everyone wants a slice of the Walmart legacy. Maybe, people should try to work for a living instead of trying to look for ways to bring down Walmart. Let me know how you feel about this.

Why Walmart is good for America

Over the past year, I've listened as various sides have weighed in on the issue of Walmart. A few weeks ago, a Federal judge overturned a Maryland law that would have required the company to invest a specific amount of its payroll in medical benefits for employees. Given the fact that this debate seems to grow ever-larger each year and that Walmart is one of the most important stocks in the world as both a member of the Dow Jones Industrial Average and as an economic indicator for the broader market, I thought I would weigh in with my position.




The American Economic System

We have been extraordinarily blessed to live in one of the wealthiest and inclusive societies in the history of the world. Although we still have a tremendous amount of ground to cover, the American civilization has been one of ever-striving for greater equality and, above all, individualism. It was formed, and continues to operate, on the bedrock that a man is responsible for himself and that he, and only he, has the empowerment and ability to build or destroy his own life. The bridge, as we know, is education; the ability to impart knowledge and synthesize it in a way that allows individuals to blossom as a person intellectually and emotionally, and put data to use in a way that results in a greater income for themselves.

Economics has been called the dismal science because in its true, unadulterated form, it doesn't seek to answer what is morally right or wrong; instead, it strives to discover how individuals, groups, and society chooses to allocate scarce resources among themselves. Today, we use a form of currency that is printed on green paper and has numbers engraved on either side. Likewise, sexual attraction, political connections, etc., are all a form of capital that can be exchanged as a claim check on society to fulfill ones own desires and wishes. The extension of this is the simple, basic truth that the wage situation in any given field is a result of the supply and demand curve. A cashier, for example, requires far less skill than, say, a neurosurgeon, creating a much larger pool of potential applicants to fill the former position.





The Gap Between the Rich and the Poor

This brings us to the point of transience within a society. At different times throughout our lives we occupy different rungs of the socio-economic ladder. In our early twenties, for example, a young couple with children is going to fall within the lowest levels of wealth. As time goes on, however, they are likely to buy a house, begin building equity by paying down the mortgage, and establishing a retirement fund in the form of a 401k. The traditional statistics, however, don't show this migration through the various layers of wealth and is partly why it is dangerous to rely on the figures espoused from politically interested parties on the nightly news.

The gap between the rich and the poor doesn't bother me in and of itself. What I think we should be concerned about as a society is the absolute well being of the poorest among us - not their relative wealth level (if given the option, I'd gladly double the gap between the rich and the poor if it meant the poorest were to experience a 100 percent increase in their standard of living). In other words, what really matters in a society is the standard of living experienced by the average citizen (which, for better or worse, is typically measured as Gross Domestic Product [GDP] per capita). In the 1950's, gas, as a percentage of household income, was far more expensive than it is today; middle class automobiles didn't boast things such as air conditioning, let alone CD players, heated seats, and navigation systems. Yet, here we are, lamenting the growing disparity between classes! We're spending so much time envious of the size of the other kid's pizza we fail to realize that in the last fifty years, the pizza has gone from a medium to a large so that in an absolute sense, even the poorest among us is far better off than they were just a short time ago.





People vs. Walmart

That brings us to the philosophical case of People v. Walmart. The cold, hard fact of the matter is that every occupation has a lifestyle associated with it. Retail clerks serve the social function of a migratory bridge between classes. To work their way through college, young students may choose to take a job at the checkout counter to help pay for textbooks. After retirement, a couple may choose to work together at a local store to generate extra income and become socially engaged in the community. The position also serves as an excellent gateway to move up the management chain. Take, for example, the Walmart district managers who now make hundreds of thousands of dollars a year; virtually all started as an hourly sales associate.

wakeupwalmart.com sucks

Maybe wakeupwamart.com should get their fact straight before they go up against the number one retailer in the world. I'm a Manager for Walmart and my associates love me because I treat them with respect. What does wakeupwalmart.com do?????? Walmart is the greatest company to work for. I started unloading trucks and now look how far I made it. WakeUpWalmart.com, suck it!!!!!!

The Rebuttal To Wake up Walmart

Maybe Wake up Walmart needs to eat their own words!

Over the past year, I've listened as various sides have weighed in on the issue of Walmart. A few weeks ago, a Federal judge overturned a Maryland law that would have required the company to invest a specific amount of its payroll in medical benefits for employees. Given the fact that this debate seems to grow ever-larger each year and that Walmart is one of the most important stocks in the world as both a member of the Dow Jones Industrial Average and as an economic indicator for the broader market, I thought I would weigh in with my position.




The American Economic System

We have been extraordinarily blessed to live in one of the wealthiest and inclusive societies in the history of the world. Although we still have a tremendous amount of ground to cover, the American civilization has been one of ever-striving for greater equality and, above all, individualism. It was formed, and continues to operate, on the bedrock that a man is responsible for himself and that he, and only he, has the empowerment and ability to build or destroy his own life. The bridge, as we know, is education; the ability to impart knowledge and synthesize it in a way that allows individuals to blossom as a person intellectually and emotionally, and put data to use in a way that results in a greater income for themselves.

Economics has been called the dismal science because in its true, unadulterated form, it doesn't seek to answer what is morally right or wrong; instead, it strives to discover how individuals, groups, and society chooses to allocate scarce resources among themselves. Today, we use a form of currency that is printed on green paper and has numbers engraved on either side. Likewise, sexual attraction, political connections, etc., are all a form of capital that can be exchanged as a claim check on society to fulfill ones own desires and wishes. The extension of this is the simple, basic truth that the wage situation in any given field is a result of the supply and demand curve. A cashier, for example, requires far less skill than, say, a neurosurgeon, creating a much larger pool of potential applicants to fill the former position.





The Gap Between the Rich and the Poor

This brings us to the point of transience within a society. At different times throughout our lives we occupy different rungs of the socio-economic ladder. In our early twenties, for example, a young couple with children is going to fall within the lowest levels of wealth. As time goes on, however, they are likely to buy a house, begin building equity by paying down the mortgage, and establishing a retirement fund in the form of a 401k. The traditional statistics, however, don't show this migration through the various layers of wealth and is partly why it is dangerous to rely on the figures espoused from politically interested parties on the nightly news.

The gap between the rich and the poor doesn't bother me in and of itself. What I think we should be concerned about as a society is the absolute well being of the poorest among us - not their relative wealth level (if given the option, I'd gladly double the gap between the rich and the poor if it meant the poorest were to experience a 100 percent increase in their standard of living). In other words, what really matters in a society is the standard of living experienced by the average citizen (which, for better or worse, is typically measured as Gross Domestic Product [GDP] per capita). In the 1950's, gas, as a percentage of household income, was far more expensive than it is today; middle class automobiles didn't boast things such as air conditioning, let alone CD players, heated seats, and navigation systems. Yet, here we are, lamenting the growing disparity between classes! We're spending so much time envious of the size of the other kid's pizza we fail to realize that in the last fifty years, the pizza has gone from a medium to a large so that in an absolute sense, even the poorest among us is far better off than they were just a short time ago.





People vs. Walmart

That brings us to the philosophical case of People v. Walmart. The cold, hard fact of the matter is that every occupation has a lifestyle associated with it. Retail clerks serve the social function of a migratory bridge between classes. To work their way through college, young students may choose to take a job at the checkout counter to help pay for textbooks. After retirement, a couple may choose to work together at a local store to generate extra income and become socially engaged in the community. The position also serves as an excellent gateway to move up the management chain. Take, for example, the Walmart district managers who now make hundreds of thousands of dollars a year; virtually all started as an hourly sales associate.

How Walmart Works

Now that Wal-Mart is so huge, it has unprecedented power to shape labor markets globally and change the way entire industries operate. In this article, you will learn the key reasons that Wal-Mart has been able to keep its prices low -- cutting-edge technology, a frugal corporate culture and a push to make suppliers sell merchandise at cheaper and cheaper prices. We'll also take a look at the scope of Wal-Mart's impact on the economy and the controversies surrounding Wal-Mart, as well as the future of the company.



Sam Walton described Wal-Mart's beginnings in his autobiography.


First, let's start with a little history. Sam Walton opened his first five-and-dime in 1950. His vision was to keep prices as low as possible. Even if his margins weren't as fat as competitors, he figured he could make up for that in volume. He was right.



In the early 1960s, Walton opened his first Wal-Mart in Rogers, Arkansas. The company continued to grow, going public in 1970 and adding more stores every year. In 1990, Wal-Mart surpassed key rival Kmart in size. Two years later, it surpassed Sears.



Walton continued to drive an old pickup truck and share budget-hotel rooms with colleagues on business trips, even after Wal-Mart made him very rich. He demanded that his employees also keep expenses to a bare minimum -- a mentality that is still at the heart of Wal-Mart culture more than a decade after Walton's death. The company has continued to grow rapidly after his death in 1992 and now operates four retail divisions -- Wal-Mart Supercenters, Wal-Mart discount stores, Neighborhood Market stores and Sam's Club warehouse.


To get a sense of just how big Wal-Mart is today, consider these facts:



Wal-Mart employs 1.6 million people. To give you an idea of just how many people that is, Idaho, the 39th most populous state, is home to 1.4 million people.

Wal-Mart had sales of $312.43 billion in its most recent fiscal year, which ended January 31, 2006. By comparison, the second-largest retailer in the country, Home Depot, posted sales of $81.5 billion.

Wal-Mart has 6,200 retail outlets. In contrast, Home Depot has 2,040.

What made Wal-Mart so big, powerful and successful? Let's look at some of its strategies, including its sophisticated use of technology, its corporate culture of watching every expense, and above all else, its mission to keep prices low.



Wal-Mart Strategy

Let's start with technology. Wal-Mart pushed the retail industry to establish the universal bar code, which forced manufacturers to adopt common labeling. The bar allowed retailers to generate all kinds of information -- creating a subtle shift of power from manufacturers to retailers. Wal-Mart became especially good at exploiting the information behind the bar code and is considered a pioneer in developing sophisticated technology to track its inventory and cut the fat out of its supply chain.



Recently, Wal-Mart became the first major retailer to demand manufacturers use radio frequency identification technology (RFID). The technology uses radio frequencies to transmit data stored on small tags attached to pallets or individual products. RFID tags hold significantly more data than bar codes. During the first eight months of 2005, Wal-Mart experienced a 16 percent drop in out-of-stock merchandise at its RFID-equipped stores, according to a University of Arkansas study (as reported in Fortune Small Business magazine).


Wal-Mart's headquarters in Bentonville, AR





The frugal culture, established by Walton, also plays into Wal-Mart's success. The company has been criticized for the relatively meager wages and health care plans that it offers to rank-and-file employees. It has also been accused of demanding that hourly workers put in overtime without pay. Store managers often work more than 70 hours per week. They are are expected to pinch pennies wherever they can, even on things like the heating and cooling of the stores. In the winter, stores are kept at 70 degrees Fahrenheit, and in the summer, they stay at 73.



This culture is also present at the company's headquarters. Wal-Mart is headquartered in Bentonville, Arkansas, instead of an expensive city like New York. The building is drab and dull. You won't catch executives in limousines and you won't see them dragging into work at 9:30 a.m. Executives fly coach and often share hotel rooms with colleagues. They work long hours, typically arriving at work before 6:30 a.m. and working half-days on Saturdays.

Why Walmart is Successful

For many years, I've been a loyal Walmart customer, and still am currently for the obvious convenience of a one-stop shopping environment. Where else can you buy a dozen eggs, a gallon


of two-percent milk, a 30-inch, flat-screen LCD monitor, and a new pair of underwear hanging off your shopping cart, all in one trip? Almost everything you need is blessed by the convenience of proximity with each other at competitive prices. Walmart employees are relatively nice with always several cashier lanes ready to serve. However, at one point I was challenged with the notion, that shopping at Walmart may be hazardous to my self-image of being a social responsible consumer. This all began after watching Frontline's documentary: Is Walmart good for America?




Frontline's documentary addressing the controversy around Walmart's great success brings up legitimate concerns, and the possible negative effects on the U.S. economy. In fact, the documentary invoked my anti-corporation humanitarian hippie side of my personality, and inspired me to change where I was grocery shopping. This inspiration was short lived after a series of frustrating experiences filled with hairline receding anxieties from shopping at any grocery store other than Walmart.



It is well known that Walmart is very competitive when pricing its products. It's equally known there's an increasing trend of consumers practicing social responsible shopping. These consumers don't have any problems paying higher prices as a means of protesting against what they deem as the unethical alternative, or anything that's a good cause-like buying Free-Range chicken eggs-and/or avoiding products produced in third world sweat shops. It's interesting that Walmart's competitors haven't tapped into this trend in consumer culture as an attempt to counteract Walmart's huge success. But rather have the audacity in this Walmart era of ultra-efficiency and low prices to push customers in signing up for a rewards card that's required to receive discounts on products that's usually more expensive than their evil Walmart rival.

Walmart Commerial

Walmart TV commercial highlighting their efforts for designing stores that are over 20% more energy efficient and their commitment to one day powering every store in America with 100% renewable energy. How could this be so bad?