Rep. Miller Calls For Inv. Admin’s Sweathrt Deal Wal-Mart Labor Violations

[paineinthearse]

http://www.house.gov/apps/list/press/ed31_democrats/rel21405.html

Representative Miller Calls For Investigation into Bush Administration’s Sweetheart Deal With Wal-Mart On Labor Violations

So-called ‘compliance agreement’ gives preferential treatment to major Republican donor

Monday, February 14, 2005


WASHINGTON, DC -- After disclosure of a secret agreement between the U.S. Department of Labor and Wal-Mart giving the giant retailer the authority to conduct its own investigations of employee wage and hour complaints, Representative George Miller (D-California) today requested an investigation by the DOL’s Inspector General to determine whether the arrangement represents a sweetheart deal between the Bush Administration and one of the nation’s most frequent violators of labor laws.

Under the arrangement, disclosed by The New York Times on Saturday, Wal-Mart will be allowed 15 days to investigate and rectify employee complaints before DOL conducts any investigation. Upon receiving a complaint about a potential violation of wage and hour laws, DOL’s field offices around the country are now instructed to notify the DOL office in Little Rock, Arkansas, which will then notify Wal-Mart’s headquarters in Bentonville, Arkansas of the complaint. The Department will not launch its own investigation during that time and it remains unclear under what circumstance it would launch an investigation after the 15 day period ends.

Miller said that such an arrangement could allow the giant employer to cover up evidence of a violation and would discourage aggrieved employees who might fear retribution from the company. Miller also sent a letter to Labor Secretary Elaine Chao today asking for more information about the arrangement.

“I am very concerned about this secret arrangement between Wal-Mart and the Bush Administration,” said Miller, the senior Democrat on the House Education and the Workforce Committee. “This is a company that has been accused of a lengthy list of labor violations. Wal-Mart does not have the credibility to serve as an impartial investigator of accusations of labor violations against itself. I intend to find out how this arrangement was reached and, if appropriate, I will consider asking Congress to rescind the agreement if it cannot be justified.

“Once again, it looks like the Bush Administration is doing a favor for a powerful friend and contributor at the expense of workers who do their jobs and still cannot get fair treatment in the workplace.”

According to the Times report, DOL entered into the “compliance agreement” with Wal-Mart after settling a case with the retailer for $135,000 over violations of child labor law in three states involving the use of dangerous heavy machinery by minors. Compliance agreements are meant to prevent similar violations by the employer from recurring, not to give employers advance notification of future violations.

Miller said it was also unusual for the Department to keep secret the fact that a compliance agreement that had been signed. This agreement, reached on January 6, 2005, only became public because of a reporter’s query to the Department. Miller said it was unclear whether Wal-Mart was required to notify its employees of the new arrangement. He said it was possible that employees had continued to file complaints with DOL without knowing that those complaints would be forwarded to Wal-Mart headquarters without an investigation.

Wal-Mart is a major contributor to the Republican Party. In the 2004 election cycle, Wal-Mart donated $2.1 million to candidates and campaigns – more than any other retailer. Eighty percent of those donations went to Republicans, according to OpenSecrets.org. Wal-Mart’s closeness to Republicans was further demonstrated in May 2004, when Vice President Dick Cheney said, “The story of Wal-Mart exemplifies some of the very best qualities in our country – hard work, the spirit of enterprise, fair dealing, and integrity.”

In fact, Wal-Mart has a long history of labor violations, from failing to pay workers for overtime hours, discriminating against women employees, violating child labor laws, and locking workers into stores at night. Last year, Miller’s staff prepared a report that detailed Wal-Mart’s egregious labor practices, and the costs to taxpayers who pick up medical, educational and other costs associated with the company’s well-known low wage policy.

One week after the child labor settlement with the Department, Wal-Mart launched what it called an “unprecedented communications initiative” to improve its image, with a full-page ad in 100 newspapers across the country.

For a PDF copy of Miller’s request for an Inspector General investigation, visit: http://edworkforce.house.gov/democrats/igletter1.pdf

For a PDF copy of Miller’s letter to Labor Secretary Elaine Chao, visit: http://edworkforce.house.gov/democrats/chaoletter5.pdf

For a PDF copy of Miller’s report on Wal-Mart’s labor practices, visit: http://edworkforce.house.gov/democrats/releases/rel21604.html

Article from CNN.com: Wal-Mart launches P.R. blitz - http://www.house.gov/htbin/leave_site?ln_url=http://www.cnn.com/2005/US/01/13/walmart.pr/index.html

Article from the New York Times: Wal-Mart Agrees to Pay Fine in Child Labor Cases - http://www.house.gov/htbin/leave_site?ln_url=http://www.nytimes.com/2005/02/12/national/12wage.html

[paineinthearse]

1. Related Dept of Labor press release

Wal-Mart Agrees to Pay Fine for Violating Child Labor Laws; Company Signs Settlement Agreement with Labor Department

2/14/2005 6:24:00 PM

----------------------------------------------------------------------

To: National Desk

Contact: Dolline Hatchett or Pamela Groover, 202-693-4650 or 202-693-4676; Web: http://www.dol.gov

WASHINGTON, Feb. 14 /U.S. Newswire -- The U.S. Department of Labor has fined Wal-Mart $135,540 in civil money penalties for violating the youth employment provisions of the Fair Labor Standards Act (FLSA) for allowing teenage workers to operate hazardous equipment.

Wal-Mart, the world's largest retailer with approximately 3,000 stores, is headquartered in Bentonville, Ark.

The department investigated the company from October 1998 through April 2002, at its stores located in Connecticut, Arkansas, and New Hampshire. The investigations revealed that Wal-Mart employed 85 minors aged 16 and 17 who performed prohibited activities, including loading and occasionally operating or unloading scrap paper balers, and operating fork lifts. Of the 25 investigations, 21 were in Connecticut, three were in Arkansas, and one was in New Hampshire.

The FLSA prohibits the employment of minors under age 18 in any occupation determined hazardous by the Department of Labor. The department has issued 17 specific hazardous occupation orders identifying prohibited occupations.

"A young person's early work experience should be positive and educational and should never jeopardize their health and well- being," said Victoria A. Lipnic, assistant secretary for the department's Employment Standards Administration. "Wal-Mart settled this matter with the department and committed to take specific measures to ensure that all its stores are in compliance with youth employment laws in the future."

As part of the compliance agreement, Wal-Mart has agreed to the following:

-- designate a corporate official to supervise compliance with the agreement;

-- provide new and current store managers with training on child labor law compliance;

-- include child labor compliance reviews in its regular internal audits, and

-- post warning signs, supplied by the Labor Department, on all company-owned hazardous equipment indicating the age restriction on their use.

Further, Wal-Mart has agreed to implement these practices in all of its Wal-Mart Stores and Supercenters.

For more information on the youth employment provisions of the FLSA, visit the department's YouthRules! Web site at www.youthrules.dol.gov. Additional information can also be obtained by calling the Department of Labor's toll-free help line at 1-866-4USWAGE.

U.S. Labor Department (DOL) releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request. Call [phone] or TTY [phone]. DOL is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit http://www.dol.gov/compliance.

http://www.usnewswire.com/

[angstlessk]

2. I noticed that. Wal Mart gets a paltry 135,000 fine and if you say shit

on the air you can be fined $500,000 per station. You can work a child to death, but do not say shit about it! That is the declaration I see being made by this adminstration.

[paineinthearse]

3. angstlessk - welcome to DU

:hi:

[paineinthearse]

4. UFCW: Wal-Mart Gets Sweetheart Deal on Child Labor Violations

UFCW: Wal-Mart Uses Children for Hazardous Jobs in U.S. Stores; Retail Giant Gets Sweetheart Deal on Child Labor Violations

2/14/2005 5:29:00 PM


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To: National Desk

Contact: Greg Denier of the United Food and Commercial Workers International Union, 202-466-1591

WASHINGTON, Feb. 14 /U.S. Newswire/ -- Following is a statement of the United Food and Commercial Workers International Union:

The nation's largest employer, and one the nation's largest corporate political donors, was cited for using children in dangerous jobs in its U.S. stores; and, then got a sweetheart deal that gives the company fifteen days advance notice before the government will initiate any investigation of future violations of federal workplace laws.

According to allegations contained in a settlement agreement with the U.S. Department of Labor, Wal-Mart was engaged in the unconscionable practice of using children to operate hazardous machinery in stores in New Hampshire, Arkansas and Connecticut. The machinery referenced in the case- balers, shredders and compactors- are standard equipment in retail stores, and are commonly associated with injuries involving the crushing or severing of arms and hands. Safety regulations on the books for decades have prohibited employers from using children to operate the machines. A company the size of Wal-Mart with a long history of operating retail stores should have been well aware of the law as well as the dangers to children in operating the restricted machinery.

While the corporate giant with billions of dollars in revenue agreed to pay a $135,000 fine, its representatives got a sweetheart deal that could insulate the company from getting caught in future violations. Wal-Mart gets fifteen days written notice of any government investigation or audit. Wal-Mart can work a child on a compacting machine or baler without fear of any unannounced enforcement action, and simply reassign the child worker during the time of the prearranged inspection. Further, the agreement allows the company ten days to correct the violation. A literal reading of the agreement would allow Wal- Mart to continue to put children at risk for over a week even if the government uncovered the violation.

Wal-Mart was the biggest political giver in the 2004 election, with the overwhelming majority of its money going to the party controlling the White House, Congress- and, the Department of Labor.

The UFCW is preparing a letter to the Secretary of Labor, and will seek Congressional review of the agreement.

For more information, contact Greg Denier 202-466-1591

http://www.usnewswire.com/

[angstlessk]

5. Here is an interesting statistic. With link.

http://www.amquix.info/amway_challenge.html

I wonder what the 'after tax per employee net profit is? Probably MORE than the $7,644, since all localities are giving away tax money to Wallyworld in order for them to plant a big box in 'their community'.

Some comparative data from Wal-Mart;

Sales per employee $144,748

Net Profit before tax per employee $7,644

Net profit on Sales before tax 5.28%

Net profit per Store before tax $2,184,580

Please e-mail me the results of your calculations, and I will start a page for benchmarking purposes

[papau]

6. A Clinton 1998 case - took 6 yrs for Bush to close - and no new Bush

cases

Who would have thought that honest government ended when Clinton left office?

:toast:

:-)

[wishlist]

7. The deal gives them enough time to sweep violations under the rug

This sweetheart deal ensures that Wal-Mart will never face sanctions again because it gives them a heads-up to clean up, cover up or manipulate (reward or intimidate complaining employees) so if and when any govt investigators start snooping around, they won't find anything to substantiate the original complaint.

[paineinthearse]

8. Hartford Courant - CT AG Blumenthal to investigate sweetheart deal

http://www.courant.com/business/hc-walmart0215.artfeb15,0,2165059.story?coll=hc-headlines-business

Wal-Mart Settlement Under Fire
By RITU KALRA
Courant Staff Writer

February 15 2005

Wal-Mart allowed nearly 70 teenage employees in Connecticut to operate dangerous machinery over a four-year period, federal Labor Department officials said Monday. State Attorney General Richard Blumenthal called for a state investigation after federal authorities reported 16- and 17-year-old children operated chain saws, forklifts and paper balers at Connecticut stores. Federal labor law prohibits children under 18 from operating such machinery.

The number of youths involved was disclosed Monday after a weekend announcement that Wal-Mart and the federal Department of Labor had reached an unusual, out of court settlement in January regarding 25 violations of child labor laws - 21 of which took place in Connecticut stores between 1998 and 2002. The Labor Department would not disclose where in Connecticut the violations occurred nor whether any children were hurt.

The settlement requires federal officials to give the company a 15-day advancenotice of any further audits as well as a 10-day grace period to correct violations. Wal-Mart agreed to pay $135,540 to settle the charges, but denied any wrongdoing. It is unclear whether any violations have taken place since 2002. The arrangement drew sharp criticism as a "sweetheart deal."

"In effect it gives the company an unusual, if not unique, amount of time to avoid or even cover up evidence in the future," Blumenthal said. "And it certainly diminishes the usefulness of any future federal investigation, which is why the state has an obligation to undertake a more proactive and aggressive role."

more...

[cthrumatrix]

9. the courts are basically giving them time to "hide their sins"

does this fall under "democracy" & "justice"

[paineinthearse]

10. Hello Connecticut??

I posted a side message in the CT forum yesterday. As of this morning, there we no replies.

I hope there is some support for AG Blumenthal. Please send him a note of encouragement and support.

[paineinthearse]

11. VIDEO - (Hartford) Courant Connection: Walmart Under Fire

Courant Connection: Walmart Under Fire



(2/16/05 9:44 a.m.) Connecticut and California officials are turning up the heat on the Department of Labor to release details about Walmart's suspected violations of child labor laws. NECN's Myriam Wright is joined by Ritu Kalra of The Hartford Courant for a discussion.

http://www.boston.com/news/necn/Business/

[Solon]

12. This stuff doesn't surprise me...

When I worked there, I was 20, but it was common to see 16 and 17 year olds making cardboard bales in the bale maker. It is dangerous, just in case anyone doubts it. You load a shitload of cardboard in a machine, and it compresses it down, till its about 5 feet wide and 8 feet long. It has slots so you can string the wires around the bale to hold it together. If you don't tie the wire right, you can get really injured when you release the pressure on the bale from the machine. I knew a 17 year old who almost lost his eye when that happened, the wire wipped up and cut his cheek below his eye, he was a lucky one. Also another violation, at least in my state is that those still in high school and less than 18 years of age cannot work past 10 pm, yet I would see them still working till at least midnight, I bet regardless of the settlement, nothing is done in most stores. Usually they will be 'Strict' about it for a month, then they will be back to their old habits after that.

[paineinthearse]

13. Stop Child Labor at Wal-Mart

Stop Child Labor at Wal-Mart Now Says the United Food and Commercial Workers Union and the Child Labor Coalition

2/17/2005 4:24:00 PM


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To: National and State desks and Labor Reporter

Contact: Greg Denier of the United Food and Commercial Workers Union, 202-466-1591 or [e-mail] or Carol McKay of Child Labor Coalition, 202-835-3323, ext 114 or [e-mail]

WASHINGTON, Feb. 17 /U.S. Newswire/ --

-- Food and Commercial Workers Union and Child Labor Coalition Present Proposal to Immediately Stop the Use of Children in Hazardous Jobs at Nation's Largest Employer --

Wal-Mart could stop illegal child labor in its stores through distinctive employee badges for underage workers that could readily identify them as being prohibited from hazardous assignments, according the United Food and Commercial Workers Union and the Child Labor Coalition. Combined with unannounced Labor Department inspections, the use of children for hazardous jobs would come to a rapid halt.

The two organizations are sponsoring, at http://www.ufcw.org, an e-mail campaign directed at Wal-Mart CEO Lee Scott and U.S. Labor Secretary Elaine Chao asking them to abandon a sweetheart deal on child labor announced earlier this week, and to take meaningful action to end the abuse of young workers.

Key to the union/coalition proposal is the re-badging of underage workers. Both managers and young workers would always be aware that certain assignments are illegal. Compliance would require unannounced inspections to make sure that badges are properly issued, and that no manager is pressuring minors into illegal assignments.

Scott and Chao are being presented with a demand to amend a settlement agreement that required the Labor Department to give Wal-Mart an unprecedented 15 days notice before any inspection. Advanced notice clearly undermines compliance, and allows managers simply to re-assign underage workers before an inspection.

Hundreds of children are maimed and crippled in accidents, some losing arms and legs, every year involving balers and compactors commonly used in Wal-Mart and other retail stores to handle the disposal of boxes and similar materials. The law has long prohibited minors from operating this kind of machinery. A Labor Department investigation brought allegations that Wal-Mart was using illegal child labor to operate the hazardous equipment in several states. To settle the case, Wal-Mart paid $135,000 and the Labor Department agreed to advance notice of inspections.

------

The UFCW and Child Labor Coalition's actions today are supported by leading worker advocates in the U.S. Congress, including Representative George Miller (D-Calif.) and Senator Edward M. Kennedy (D-Mass.). Their statements follow:

---

The following is a statement of Representative George Miller (D-Calif.), senior Democrat on the House Committee on Education and the Workforce:

"I congratulate UFCW and the Child Labor Coalition for proposing a workable, inexpensive and effective way to end the illegal use of child labor, and I would hope that both Wal-Mart and the Department of Labor will respond positively."

The following is a statement of Senator Edward M. Kennedy (D-Mass.) on Wal-Mart's Sweetheart Deal with Department of Labor on Child Labor Violations:

"The Department of Labor has shamefully abdicated its responsibility by acquiescing in Wal-Mart's continuing violation of child labor laws and other worker protections. Even worse, the Department conspired with Wal-Mart to conceal this sweetheart deal from the public. The Department is there to enforce the law, not be muzzled by America's largest employer."

http://www.usnewswire.com/