Tuesday 23 October 2012

Wal-Mart faces wage lawsuit as walkout threat looms

A new lawsuit accused Wal-Mart Stores Inc and two staffing agencies of requiring temporary employees to show up early for work, stay late, and work through lunch at the world's largest retailer.



The proposed class action, filed on Monday in a Chicago federal court, alleged Wal-Mart and the agencies violated minimum wage and overtime laws which could affect several hundred temporary workers in the Chicagoland area.

Wal-Mart has faced protests in various U.S. cities lately and some workers have planned to walk off the job on Black Friday, the busy shopping day right after Thanksgiving. Such actions are being sponsored by a groups including a contingent of workers called OUR Walmart that is trying to speak out about what it says are tough working conditions.

In early October, workers who are part of OUR Walmart staged what the group called the first-ever strike against Walmart in Los Angeles, while Walmart itself called the event in Los Angeles a rally. Walmart store employees also walked off the job in other cities including Dallas in actions sponsored by OUR Walmart.

Longer strikes also took place at a Southern California warehouse and at a distribution center in Illinois that supplies Walmart stores.

OUR Walmart, a group of current and former Walmart employees, is backed by the United Food & Commercial Workers International Union. UFCW members work at grocery stores that compete with Walmart.

Wal-Mart's labor practices have garnered criticism among consumers and have gotten attention in the press, but so far have not affected investors. Roughly half of Wal-Mart's stock is controlled by descendents of company founder Sam Walton.

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