Labor Settlement Threatens To Slow Wal-Mart’s Recession-Proof Swagger
December 24, 2008 by Tisa Silver
Filed under Finance
Stop the press!!! Wal-Mart has agreed to fork over up to $640 million in order to settle 63 wage and class-action lawsuits.
The suits allege wage and hour violations. In other complaints Wal-Mart has been accused of cutting break time for workers, providing inadequate health care benefits and encouraging employees to work off the clock (lingo for work without pay).
I thought Wal-Mart would battle until the death, but according to Forbes the discount retailer has agreed to surrender.
Wal-Mart reps expect the settlement to range from $352 million to $640 million. A more accurate figure will be available once eligible employees submit their claims.
Wal-Mart’s stockholders should consider this settlement as an early Christmas gift. The payout will cost them some cash now, but will save them more cash later. Shares of Wal-Mart gained 14 cents today and closed at $55.44.
If you are still in search of gifts I heard Wal-Mart is open until 6 pm tonight, to be sure find the store nearest you for details.
Alleged shady labor practices and an anti-union stance don’t do much for corporate image. Hopefully, this settlement will serve as a positive step in the direction of fair treatment for employees at all levels…wishful thinking, right? Blame it on the egg nog ;)
BTW- I am taking tomorrow off, so Happy Holidays!!! Whatever you celebrate, I wish you the best!
