Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘walmart’

Help the Women of Walmart Today

Friday, December 1st, 2017

My mom died without me by her side because my boss at Walmart wouldn’t let me leave work.

In 2015, my mom had a stroke, so I upended my life in North Carolina, and moved to Texas with my son to take care of her. When I found a new job, I explained I was there to look after my dying mom, so I would need a flexible schedule to take care of her.

Walmart supervisors ignored my requests time and again, and when I got the call that she was about to die, my boss told me I’d be fired if I left.So she died without me there, as I listened on the phone and cried.Never Alone

My story isn’t unique: you can walk into any Walmart store and hear stories just like mine. Being a Walmart worker means being expected to put up with poverty pay, inflexible schedules, and disrespect from bosses.For the majority of store associates like me, the regular folks who stack the shelves and work the registers, working at Walmart often means being punished when we need to be there for our families. I wasn’t allowed to leave work to be with my mom when she died, and I know of other Walmart workers who can tell similar stories. One Walmart associate I know had to go back to work with week old newborn at home, only to find her hours and pay got slashed when she had a baby.But even if you already know how badly Walmart treats workers like me, you might be still be shopping at Walmart without even realizing it.Bad Behavior By Any Name

Earlier this year, to try and win over the kind of customers you don’t often see in big-box stores, Walmart bought several online brands including ModCloth, Moosejaw, and Bonobos.Walmart is trying hard to sell more online to compete with Amazon, but they’re having a hard time. I think it’s because too many people know about Walmart mistreat workers.That’s why Walmart has kept pretty quiet about taking over these brands. If you go to the ModCloth website, for example, they tell you all about how the site was started by high school sweethearts in their college dorm, but they never mention that ModCloth is in fact part of Walmart.What you do find is a lot of talk about women’s empowerment, and they make a point of featuring plus-size models in their photos. ModCloth definitely wants you to think that they’re a women-friendly company.But how can you be women-friendly when you’re owned by a company like Walmart that treats women workers like me so badly?Taking Back Walmart

On Cyber Monday, I joined other Walmart workers to launch our #ByeModCloth campaign. We’ve collected signatures from 100,000 former ModCloth customers and allies who aren’t falling for Walmart’s tricks.Ours is a message Walmart won’t be able to ignore, and it’s not too late for you to add your name. I’m a member of OUR Walmart, a community of Walmart associates, and together we’ve talked to hundreds of former ModCloth customers about what it’s like to work at Walmart. Most of these shoppers had no idea the company had been bought by Walmart. When we told them, they were outraged and promised to stop shopping there.One even told us finding out Walmart owns ModCloth was “adult feminist version of finding out Santa Claus isn’t real.”I’ve got bad news: Santa Claus isn’t real. And Walmart really does own ModCloth.That’s why ModCloth’s talk of being great for women is just that – all talk. ModCloth is owned by Walmart, and Walmart’s policies of low pay, unfair schedules, and no paid leave are hurting hundreds of thousands of women like me.Help the Women of Walmart

Even though most Walmart associates are women, most senior execs are men. They won’t reveal if they pay men more than women, but a study in 2003 found that the average Walmart man makes $5200 more than the average Walmart woman. No wonder there have been over 2,000 claims filed at Walmart alleging bias in pay and promotions.  It’s a disgrace, but the sad truth is that Walmart doesn’t listen to workers like me. They chew us up and spit us out, and never treat the work we do for them with respect. But they do listen to their customers, especially the customers of the new online brands they’re pinning their hopes on. That means if you’re a ModCloth customer, then Walmart is listening to you, and Walmart workers need you to use your voice.So here’s what I’m asking every one of you to do: keep your eyes open, and know where your money goes. If you’re a customer of ModCloth, now you know that you were shopping at Walmart, and you can help us now.If you think workers shouldn’t be treated the way I was treated, sign our #ByeModCloth pledge. And if anyone from their customer service team asks you why, tell them that the women of Walmart sent you.

This blog was originally published at OurFuture.org on December 1, 2017. Reprinted with permission.

About the Author: Tiffaney Meredith is a member of the OUR Walmart community of Walmart associates.

These corporations have declared war on Thanksgiving

Thursday, November 23rd, 2017

For the last decade or so, dozens of the world’s largest retailers have shifted the unofficial start date of the holiday shopping season one day forward, from Black Friday — so named because it’s the busiest shopping day of the year and pushes retailers’ bottom lines into the black — to Thanksgiving Day.

So instead of sitting down to a family dinner, corporations like Walmart, Target, Best Buy, and others coerce or sometimes force hundreds of thousands of minimum wage employees and countless more shoppers to forego the federal holiday and instead work extra long shifts hawking cheap televisions, refrigerators, or Nickelback CDs.

Defenders of the practice argue that if shoppers didn’t want to be out buying holiday presents on Thanksgiving Day, they would simply stay home. But many of the shoppers who turn up do so because the same retail stores often reserve their best deals for the first people through the door. If you’re from a lower income family and can only afford certain gifts if the price is right, showing up when a store opens isn’t so much a choice as it is a necessity.

The pressure to skip Thanksgiving is even greater on the hundreds of thousands of employees who work at big box stores. Many store managers make it hard or even impossible for their hourly workers to take off on Thanksgiving. Others who have tried to stand up for their employees have themselves been fired by corporate executives for not opening on Thanksgiving.

Fortunately, after years of push-back from shoppers and employees, some retailers are beginning to rethink the practice. For the last seven years, ThinkProgress has provided our readers with a shopping guide to the stores that are remaining closed for the duration of Thanksgiving—and the ones that are not. Our list is far from comprehensive, but we’ve tried to offer a range of retail categories. This holiday season, consider giving your business to the stores that are treating their workers with some civility, and withholding it from those that are not.

 

 

 

 

 

 

 

 

 

 

 

 

About the Author: Adam Peck is a Reporter/Blogger for ThinkProgress at the Center for American Progress Action Fund. Adam grew up just outside of New York City, and attended Stony Brook University’s School of Journalism. Before joining ThinkProgress, Adam was an intern at Countdown with Keith Olbermann at MSNBC in New York, and at Campus Progress in Washington, D.C. He was also the founder and editor of Think Magazine, the largest collegiate news organization on Long Island. His work has appeared in The New York Times, CNN and the BBC.

Paid family leave policies show corporate America's disdain for low-wage workers and their babies

Monday, May 22nd, 2017

Becoming a parent is one more aspect of life poisoned by economic inequality in the United States, with people who are paid more than $75,000 a year twice as likely to get paid leave as people who are paid less than $30,000. And even companies that have touted their parental leave programs leave many of their workers out, giving paid leave to their salaried staff at corporate headquarters but not to the workers standing behind the cash registers or making the cappuccinos or fried chicken. A new report from Paid Leave for the United States highlights the inequality within major U.S. companies:

  • Starbucks has one of the most unequal policies—they provide 18 weeks of fully-paid leave for new mothers and 12 weeks fully paid for new fathers in corporate headquarters, but only six weeks for birth moms who are in-store employees (like baristas) and nothing for dads or adoptive parents in this employment category. Starbucks employs ~5,000 people in its corporate headquarters and ~150,000 in stores; meaning their highly-touted policy affects about 3% of their total U.S. workforce.
  • The nation’s largest private employer, Walmart, provides twelve weeks of paid leave for birth mothers who are corporate employees—but only 6-8 weeks at partial pay for birth moms who are among the 1.2 million hourly employees in their stores – if they work full time.
  • Yum! Brands offers 18 weeks paid parental leave to birth mothers, and 6 weeks to dads and adoptive parents who work in the corporate office only. Field employees, who work for franchises such as KFC and Pizza Hut, receive no paid family leave.

A few companies do have equal leave policies for their corporate and frontline workers: Ikea, Levi’s, Nordstrom, Nike (though it leaves out part-time employees), Bank of America, Wells Fargo, JPMorgan Chase, Hilton, and Apple.

Just six percent of low-wage workers have any paid leave at all, which is why a quarter of new mothers are back on the job within 10 days. That means that not only are new mothers leaving their newborn babies, they’re working before they are physically recovered from childbirth.

 And no paid leave can also mean no flexibility even for emergencies; a Walmart worker named Jasmine Dixon told PL+US that:

“I had no paid leave and had to go back to work at Walmart two weeks after childbirth. I took Zyon to his first 2-week doctor’s check-up and found out that he needed to go back to the hospital urgently. They took him away in an ambulance – I was terrified for him, and that I might be risking my job at Walmart by coming in late that day. I called my manager to let them know I had to go with my baby to the children’s hospital, but it didn’t matter – my store manager penalized me for missing work.”

This decision should not be left to individual companies. The baby of the worker behind the cash register deserves parents at home with her just as much as the baby of the worker behind the computer. Workers shouldn’t have to hope that they’re working at Ikea rather than Starbucks when they have a baby. Paid family leave should be the law of the United States as it is the law of most countries.

This blog originally appeared on DailyKos.com on May 18, 2017. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.

What's the reality behind Walmart's 'Made in America' claims?

Wednesday, June 29th, 2016

LauraClawsonWalmart is making its annual push to get credit for its self-proclaimed massive investment in U.S.-made products, which means it’s time for a reality check. The Alliance for American Manufacturing, which put together the infographic below, has the facts:

 When Walmart claims that its American-made goods initiative will create 1 million new American jobs, it fails to mention that Chinese-made goods entering the United States through Walmart totaled at least $49.1 billion in 2013 alone.

It also doesn’t mention that the combined effect of imports from and exports to China through Walmart accounted for about 15 percent of the growth of the overall American goods trade deficit with China between 2001 and 2013.

Or that the Walmart-based Chinese trade deficit eliminated 400,000 American jobs during that time.

Walmart’s rosy claims are on the left; the AAM’s reality check is on the right.

infographic highlighting distance between Walmart's claims about buying American and the reality.

This blog originally appeared at DailyKos.com on June 28, 2016. Reprinted with permission. 

Laura Clawson has been a Daily Kos contributing editor since December 2006. Labor editor since 2011.

NLRB Judge Rules Walmart Wrongly Fired Strikers

Monday, February 1st, 2016
Kenneth Quinnell

An administrative law judge at the National Labor Relations Board has ruled that Walmart retaliated against workers for participating in strikes. Walmart claimed that the workers’ actions were not protected under the National Labor Relations Act and that it was legitimate to fire the employees for violating the company’s attendance policy. Judge Geoffrey Carter ruled against Walmart.

The ruling says that Walmart must reinstate 16 former employees with back pay and must hold meetings in 29 stores to inform workers of their right to strike and that strikes are protected under the NLRA.

Jess Levin, communications director for Making Change at Walmart, applauded the ruling:

Today’s decision proves beyond doubt that Walmart unlawfully fired, threatened and disciplined hardworking employees simply for speaking out. Not only is this a huge victory for those workers and Walmart workers everywhere who continue to stand up for better working conditions, but it sends a message to Walmart that its workers cannot be silenced. We will continue to fight to change Walmart for the better.

Read the full ruling.

This blog originally appeared in aflcio.org on January 29, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.

Wal-Mart Killed At Least 400,000 Jobs In A Dozen Years, While The Waltons Got Richer

Friday, January 22nd, 2016

If you want to know why a political revolution is necessary (and why the status quo’s most intellectually fraudulent campaign in recent Democratic primaries is such a threat to working people), you need only check out this new report from our friends at the Economic Policy Institute. Wal-Mart (that would be the board the status quo candidate sat on without uttering a peep while millions of women were discriminated against and the Waltons pursued their middle-class killing business plan) essentially obliterated, conservatively, 400,000 jobs in a decade or so.

Here’s how:

This paper updates earlier work (Scott 2007) to provide a conservative estimate of how many jobs have likely been displaced by Chinese imports entering the country through Wal-Mart:

  • Chinese imports entering through Wal-Mart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports to China conducted through Wal-Mart likely accounted for 15.3 percent of the growth of the total U.S. goods trade deficit with China between 2001 and 2013.

  • The Wal-Mart-based trade deficit with China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.

  • The manufacturing sector and its workers have been hardest hit by the growth of Wal-Mart’s imports. Wal-Mart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Wal-Mart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.

  • Wal-Mart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Wal-Mart trade deficit with China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.

China has achieved its rapidly growing trade surpluses by manipulating its currency: it invests hundreds of billions of dollars per year in U.S. Treasury bills, other government securities, and private foreign assets to bid up the value of the dollar and other currencies and thereby lower the cost of its exports to the United States and other countries. China has also repressed the labor rights of its workers and suppressed their wages, making its products artificially cheap and further subsidizing its exports. Wal-Mart has aided China’s abuse of labor rights and its violations of internationally recognized norms of fair trade by providing a vast and ever-expanding conduit for the distribution of artificially cheap and subsidized Chinese exports to the United States. [emphasis added]

And:

Since Wal-Mart’s exports to China were negligible, the rapid growth of its imports had a proportionately bigger impact on the U.S. trade deficit and job losses than overall U.S. trade flows with China (since the rest of U.S. trade with China does include significant U.S. exports to that country). On average, each of the 4,835 stores Wal-Mart operated in the United States in fiscal 2014 (Wal-Mart Stores Inc. 2014) was responsible for the loss of about 86 U.S. jobs due to the growth of Wal-Mart’s trade deficit with China between 2001 and 2013.

So, if for some reason, you shop at Wal-Mart, think about each of those workers whose job you helped eliminate by supporting this scar on the economy. While middle-class jobs disappear and people become even more impoverished, forcing them to shop at Wal-Mart, the Waltons became the richest family in the country, with $149 billion in wealth for six people.

Be my guest: continue to believe the fraudulent rhetoric coming from the status quo. Continue to live in a dream world and ignore the reality, and the record, continue to embrace the most amazing individual cognitive dissonance imaginable and fawn over a fraud in complete ignorance of the facts laid out.

And, then, don’t be surprised and weep when Wal-Mart grows, poverty widens and nothing changes.

This blog originally appeared in workinglife.org on December 22, 2016. Reprinted with permission.

Jonathan Tasini is the president of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years.  Hiss goal is to find the “white spaces” that need filling, the places to make connections and create projects to enhance the great work many people do to advance a better world. He is also publisher/editor of Working Life.

Woman sues Walmart after being told to 'choose between her career and her kids,' then fired

Monday, January 18th, 2016

Women filing discrimination lawsuits against Walmart are nothing new. Walmart firing people for questionable and controversial reasons is also nothing new. Now a woman is suing the low-wage retail giant, saying she was fired after complaining about discriminatory treatment. Specifically, Rebecca Wolfinger says her boss told her she had to “choose between her career and her kids.”

Wolfinger’s suit focuses on what she claims was her mistreatment while working as a shift manager. She was being required to work seven days a week when she received the “career or kids” threat, she contends.

Other male shift managers weren’t on a seven-day work schedule, Wolfinger claims. Her February 2012 firing occurred after she reported her boss’ comment to a company human resource officer, the suit states.

Wolfinger was officially fired, she says, for selling Pampered Chef outside of work—but coworkers who engaged in similar activities weren’t fired. And of course a sophisticated company like Walmart doesn’t admit to having fired someone for complaining about illegal discrimination.

Several years ago, 1.5 million women who worked or had worked at Walmart attempted a class action lawsuit against the company, only to have the Supreme Court say that “[e]ven if every single one of these accounts is true, that would not demonstrate that the entire company operate[s] under a general policy of discrimination.” That’s despite evidence like this:

Many female Walmart employees have been paid less than male coworkers. In 2001, female workers earned $5,200 less per year on average than male workers. The company paid those who had hourly jobs, where the average yearly earnings were $18,000, $1.16 less per hour ($1,100 less per year) than men in the same position. Female employees who held salaried positions with average yearly earnings of $50,000 were paid $14,500 less per year than men in the same position. Despite this gap in wages, female Walmart employees on average have longer tenure and higher performance ratings.

Doubtless all just a coincidence, though. Just like Rebecca Wolfinger was coincidentally fired for something that other workers did after she reported being discriminated against.

This blog originally appeared in dailykos.com/blog/labor on January 13, 2016. Reprinted with permission.

Laura Clawson is the Daily Kos contributing editor and has been since December 2006.  She has also been the labor editor since 2011.

The Grocery Store That Competes With Walmart Prices And Is Beloved By Employees

Friday, May 22nd, 2015

Bryce CovertThis week, Wegmans, a family-owned grocery store chain, announced it would open its first location in New York City.

The announcement prompted an outpouring of devotion for the company. The New York Times noted it can actually claim a “cult following.” Part of the devotion to the store is not just that it manages to have a huge selection while offering prices that can compete with Walmart, but that it does it while treating its employees well.

The perks start with pay, which for hourly store employees is a little more than $33,000 a year on average. By contrast, Walmart has admitted that more than half of its employees make less than $25,000 a year, although it recently announced a wage increase, and retail sales workers make a median $21,410 annual salary. Anonymous pay sites like Glassdoor and Payscale also show that a Wegmans cashier can expect to make more than $9 an hour, on average.

But that’s not what makes the company famous for employee satisfaction, landing it on Fortune’s 100 Best Companies to Work For list every year since the list began. It also offers generous benefits. It pays about 85 percent of the costs of health care coverage, including dental, for its full-time employees and offers insurance to part-time workers who put in 30 hours a week. It offers 401(k) plans with a salary match of up to 3 percent of an employee’s contribution.

And it has a scholarship program that awards tuition assistance to employees, which has paid out $100 million to 32,000 employees since it began in 1984. The program gives part-time employees up to $1,500 a year and full-time employees up to $2,200 a year to study at any college in any field. Starbucks’s lauded scholarship program, by contrast, used to only be for studying careers that directly prepared employees for working at Starbucks and now is only applicable for studying at Arizona State University. The share of companies offering employees college assistance has been trending downward.

Wegmans also offers more work/life balance than most retail jobs. It gives employees 11 days of paid vacation and holidays and three extra days of paid time off. It’s known for flexible scheduling, a perk that regularly tops surveys of its own workforce as the most important benefit offered. Managers have the power to craft their own schedules and work with employees’ needs, and many workers use an online system to lay out their availability around their own schedules. In retail at large, on the other hand, more than a quarter of workers report irregular and unpredictable scheduling like being made to be on call or working two shifts in one day. Nearly 40 percent of retail workers in New York City say they don’t have a set minimum of hours week to week.

These benefits aren’t just altruistic. The company generates $7.1 billion in revenue and is profitable. “When you think about employees first, the bottom line is better,” the company’s vice-president for human resources has said. The company boasts a 5 percent turnover rate among full-time employees, compared to a 27 percent rate for the industry. That comes with a cost, as it often eats up about 20 percent of a worker’s salary to replace him.

“What some companies believe is that you can’t grow and treat your people well,” says a senior vice president. “We’ve proven that you can grow and treat your people well.”

This blog was originally posted on Think Progress on May 14, 2015. Reprinted with permission.

About the Author: The author’s name is Bryce Covert. Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

The High Cost of Fighting for $15

Tuesday, April 14th, 2015

Leo GerardThis is no plea for pity for corporate kingpins like Walmart and McDonald’s inundated by workers’ demands for living wages.

Raises would, of course, cost these billion-dollar corporations something. More costly, though, is the price paid by minimum-wage workers who have not received a raise in six years.  Even more dear is what these workers have paid for their campaign to get raises. Managers have harassed, threatened and fired them.

Despite all that, low-wage workers will return to picket lines and demonstrations Wednesday in a National Day of Action in the fight for $15 an hour. The date is 4 – 15. These are workers who live paycheck to paycheck, barely able to pay their bills, and certainly unable to cope with an emergency. They know the risk they’re taking by participating in strikes for pay hikes. They’ve seen bosses punish co-workers for demonstrating for raises. To lose a job, even one that pays poverty wages, during a time of high unemployment is terrifying. Still, thousands will participate Wednesday. That is valor.

0-Fight-for-15-graphic

Kip Hedges exhibited that courage. He’s a 61-year-old with 26 years of service as a baggage handler for Delta at the Minneapolis-St. Paul Airport. He wanted better wages for young workers and a union. He said so in a video, noting that “probably close to half make under $15 an hour.”

Delta fired him. The airline said he’d disparaged the company. Apparently Delta believes it has been disparaged if the flying public learns the truth about the way Delta treats workers.

Clearly, Delta planned to shut Hedges up and intimidate other workers. The message to his co-workers was clear: “You wanna talk about the paltry wages you get? Well, let’s talk about this pink slip.”

But when Delta messed with Hedges, it messed up big time. The firing failed to silence him. Hecontinued to protest low wages. His co-workers rallied round him. The media covered his firing and his appeal. He looked like a low-wage worker hero. Delta looked like a vindictive heel.

Unlike Hedges, Shanna Tippen was no activist before she got fired from her minimum-wage job in Pine Bluff, Ark. She was just trying to get by, and falling short by about $200 a month. Her boss at the Days Inn where she worked as a night shift jack-of-all-trades asked her to talk to a Washington Post reporter who had dropped by the hotel to discuss the state’s newly instituted 25-cent increase to the federal minimum wage of $7.25.

Tippen told the reporter, Chico Harlan, that she hoped the little bit of extra money would help her pay for her grandson’s diapers.

After the Post published the story, the manager of the Days Inn, Herry Patel, telephoned Harlan to complain about being quoted in it. Then he fired Tippen. She recounted it to Harlan:

“He said I was stupid and dumb for talking to [The Post].”  Even though, of course, Patel had told Tippen to talk to the reporter. Tippen continued: “He cussed me and asked me why you wrote the article. I said, ‘Because he’s a reporter; that’s what he does.’”

Patel told Harlan that Arkansas voters, who approved the pay increase in a referendum by 66 percent, should not have done it. “Everybody wants free money in Pine Bluff,” Harlan quoted him as saying.

Patel apparently did not understand that Tippen performed work that kept the hotel running every night, which means she earned the money. The truth is that Patel, like so many other employers, believes that employees should work for free.

The Post and other papers wrote about Tippen’s firing, making her an icon for ill-treated, low-wage workers and Patel the personification of miserly bosses.

Worker-exploiting employers like McDonald’s, Chipotle and Walmart have shown themselves to be craven in the face of courageous workers’ wage protests as well.

Over the past few months, the National Labor Relations Board (NLRB) has filed charges against McDonald’s and Walmart alleging they violated workers’ rights, including threatening retribution against those who participated in strikes.

In December, the NLRB in California ruled that Walmart illegally punished workers for striking and seeking to unionize. The judge determined that Walmart managers illegally intimidated workers by, for example, telling one, who had tied a rope around his waist to pull a heavy load, “If it was up to me, I would put that rope around your neck.”

In the Chipotle case, the NLRB ruled that a manager in St. Louis illegally fired worker Patrick Leeper for participating in Fight for $15 demonstrations and for talking about wages at work. After the decision, a company spokesperson told the news website Think Progress: “Generally speaking, it is always a top priority for us to remain compliant with all local and federal labor laws.”

“Generally,” Chipotle tries. Generally. Not in this particular case involving low-wage workers demonstrating for better pay. But, you know, generally Chipotle tries to obey the law.

In the original Washington Post story about the tiny increase in the minimum wage in Arkansas, Dominic Flis, whose company owns 18 Burger Kings in central Arkansas, said raising the minimum wage pushes up pay for other workers too. Here’s what he said:

“If somebody was already making $7.50, and minimum wage goes to $7.50, they’ll have some expectation of a raise as well,” Flis said. “And I have to maintain my workforce.”

The Brookings Institute calls this the ripple effect. The pay increase at the bottom ripples all the way up the pay scale.

Hedges, the fired Delta worker, put it another way: “a lot of the better paid workers also understand that the bottom has to be raised otherwise the top is going to fall as well.”

If for no other reason than self-interest, join the gutsy minimum-wage workers at a Fight for $15 event Wednesday.

This article originally appeared in ourfuture.org on April 14, 2015. Reprinted with permission.

About the author: Leo W. Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18. For more information about Gerard, visit usw.org.

Workers Sue Walmart For Manipulating Employee Classification To Deny Them Overtime Pay

Friday, April 10th, 2015

Bryce CovertWalmart is facing a potential class action lawsuit over alleged wage theft in Alameda County Superior Court from an employee who claims the company illegally denied managers overtime pay.

Bonnie Cardoza, who worked at the company as an assistant manager for about five years, says she and other assistant mangers were made to do the same tasks as hourly workers for more than eight hours a day. The extra duties included greeting customers, operating checkout areas, and taking inventory.

But because they are labeled managers, they are exempt from federal overtime laws that require employers to pay workers time and a half for more than 40 hours of work a week. The lawsuit alleges that they “were ‘managers’ in name only because they did not have the managerial duties or authority,” but that Walmart purposefully classified them as managers to avoid overtime pay and cut costs. The suit claims they should have been paid that extra wage for more than eight hours of work a day.

The lawsuit also says the company deprived Cardoza and other assistant managers of rest and meal breaks.

She is suing for back wages to make up for the lack of overtime pay and compensation for the missed breaks on behalf of any Walmart assistant manager who has worked there since January 2011, although her lawyers say it’s too early to know whether it will achieve class action status.

In response, a Walmart spokesperson said, “It is our policy to pay associates according to federal and state laws. We take this matter seriously. We are investigating the allegations and will respond appropriately with the court.”

It’s not the first time the company has been accused of denying its workers pay. At the end of last year, the company was ordered by the Pennsylvania Supreme Court to pay $151 million in back wages to 187,000 current and former employees who accused it of making them work off the clock during their breaks.

A big Walmart supplier also had to pay out over wage theft in 2013 over allegations that it forced workers to forgo meal breaks. While Walmart doesn’t own the operations, it effectively runs facilities for the company and the company has been accused of squeezing its suppliers so hard that they have to crack down on labor costs.

Wage theft is rampant beyond Walmart, however. In 2012, nearly $1 billion was recovered in back wages for the victims of wage theft, but even that undercounts the breadth of the problem since most workers don’t report the problem. It’s estimated that employers deny workers $50 billion that they’re owed every year by making them work off the clock, shave hours off of their paychecks, pay for work-related expenses out of their own paychecks, or other practices that dock wages. That figure dwarfs the $14 billion taken from all victims of robberies, burglaries, larcenies, and car thefts together.

The problem is particularly rampant in fast food, where recent suits have been filed against TGI Friday’s, McDonald’s, Subway, and Chipotle.

The issue of overtime misclassification has also gotten attention recently. Last year, President Obama issued an executive order that would update overtime laws so that fewer employees could be classified as managers and therefore exempted from time and a half. It would also raise the salary cutoff for getting overtime pay, which currently means anyone who makes more than $23,660 is exempt, a threshold that hasn’t been significantly updated since 1975. These changes could also aid employees like Cardoza, who would likely qualify for overtime pay even if they are assistant managers.

This article originally appeared in thinkprogress.org on April 10, 2015. Reprinted with permission.

About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

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