|
Mass
merchants suffer in 2008, with few exceptions
By ANNE D'INNOCENZIO,
12.31.08
[back to top]
Wal-Mart Stores Inc. may be one of the
few broadline retailers to come out ahead in the 2008 economic slump, as
consumers switched to lower-priced stores at the expense of merchants
known for higher-end and discretionary products.
Overall, the year was dismal for the
retail sector, with consumers tightening their belts amid a souring
economy, rising unemployment, and plummeting home values. The effect
sent retail stocks tumbling, exacerbating a downward trend that began in
late 2007. The Dow Jones U.S. General Retailers Index fell 24 percent in
2008, compared with a 39 percent decline for the Standard & Poor's 500
index.
Stocks of many industry stalwarts were
hammered, with shares Hoffman Estates, Ill.-based Sears Holdings Co.
down 62 percent in 2008, while shares of Cincinnati-based Macy's fell 62
percent. Plano, Texas-based J.C. Penney Co. stock dropped 56 percent,
and Minneapolis-based Target Corp. lost 31 percent.
In contrast, Wal-Mart has enjoyed a 16
percent increase in its share price for the year.
"Wal-Mart's stock price reflects its
immunity to some of the monetary and economic crisis" other retailers
are facing, said Richard D. Hastings, a strategist with Global Hunter
Securities.
The Bentonville, Ark.-based discounter
- which posted an almost 10 percent increase in third-quarter profit
while other retailers stumbled - is expected to be one of the few bright
spots in an otherwise awful holiday shopping season. That's important,
because the holiday period accounts for as much as 40 percent of annual
sales and earnings for many merchants.
The fallout from the weakest season
since at least 1969 is expected to send a number of retailers into
bankruptcy.
Hastings credited Wal-Mart's success
to the world's largest retailer growing market share in many areas after
cleaning up its stores, sprucing up merchandise and re-emphasizing its
low prices just as the economy started to worsen.
Shares of some other discounters
performed well, too. Charlotte, N.C.-based Family Dollar Stores Inc.
rose 34 percent in 2008, while Chesapeake, Va.-based Dollar Tree Inc.
climbed 60 percent.
But those stocks were the exception in
an otherwise brutal year for retail. Shares of luxury retailers were hit
particularly hard as nervous consumers stayed away from purchases
considered nonessential. Saks Inc. and Tiffany & Co., both based in New
York, lost 81 percent and 49 percent of their value, respectively.
High-end department store chain Nordstrom Inc., based in Seattle, slid
65 percent.
Hastings says retail stocks could rise
next year as investors react postively to the industry's dramatic
cost-cutting measures, from closing stores to cutting inventory.
Copyright 2008 Associated Press. All
rights reserved
[back to top]
FoWB:
Wal-Mart okay, just not there!
By Hannah Wever,
Orange County Review
December 26th, 2008
[back to top]
One local group says a Wal-Mart in
Orange County is alright, but the planned location for the big-box store
is all wrong. The 140,000-square foot retail store, as planned, will
take up 19 acres of a 50-acre parcel on the north side of Route 3, and
is already zoned for commercial use. But the recent adoption of a large
retail use ordinance into Orange County’s code means any retail
establishment in excess of 60,000 square feet must submit a special use
permit, and go through the public hearing process. Since Wal-Mart has
not officially filed, a hearing date has yet to be set. Members of the
community, including Craig Rains, spokesperson for the Friends of
Wilderness Battlefield (FoWB) preservation group, argue that building a
Wal-Mart on a site so close to important Civil War locations would have
a devastating impact. What stands to suffer if the big-box is built at
routes 3 and 20, Rains said, is the loss of a vital feature of American
history, and additional congestion on an already over-traveled and
poorly engineered roadway, among other things. Rains is quick to
clarify: He, and other members of the FoWB are not opposed to a Wal-Mart
in Orange. “I’m all for it, it’d be great for the county,“ he said. “I
just think it’s absolutely the worst place to put it is on the
battlefield.“ Instead, Rains suggested alternative locations could
protect the Wilderness Battlefield area, while better serving the county
with no negative aspects for the Wal-Mart corporation. “There are plenty
of places for them to move we think they’re creating the wrong
environment at the battlefield,“ Rains said. Two possible substitute
sites could be at the intersection of Routes 20 and 611 in Locust Grove,
or further down Route 3 on an area behind the Bloom grocery store.
Suitable existing traffic patterns, and site plans are already in place
at both locations. And, he added, engineering improvements to traffic at
a Locust Grove location, or at an intersection nearer to Lake of the
Woods would be far simpler than trying to improve travelways at routes 3
and 20. “We’d like to see them get away from this intersection [routes 3
and 20] and move down the road,“ he said. “If they would move it up here
to LOW and put it behind the Bloom there’s already a traffic light
there.“ But when Wal-Mart representatives visited community members last
month to present their ideas and open a dialog, other locations in
Orange County had apparently already been ruled out. Wal-Mart Senior
Manager for Public Affairs Kelly Hobbs said project planners were aware
of community concerns about a big-box, national chain retailer locating
close to historic sites in Orange. “We did look at other sites, and we
feel like this is better for the county, for the community and for the
company,“ Hobbs said. Further, Hobbs added, the site of the proposed
Wal-Mart is within an area designated by the county for economic
development, and has had a commercial zoning classification for about 20
years. But Rains contended that when that piece of property became
classified as commercially zoned, county officials at the time weren’t
envisioning a behemoth discount department store. “It is zoned
commercial; it is not zoned for a big box store. When this property was
zoned commercial by the board of supervisors, they never envisioned a
Wal-Mart coming in,“ Raines said. And perhaps more threatening to the
area’s historic atmosphere is the pad site proposed between the Wal-Mart
and Route 3, where any combination of businesses could spring up without
having to submit to the county’s special use permit process.
Additionally alarming to Rains is a massive mixed-use development
project-now in planning stage infancy-proposed for several thousand
acres next door to where the Wal-Mart will be. “All of a sudden there’s
this monster coming in,“ Rains said. “And where does it stop?“ Rains
said neighboring localities have preserved similar historic sites by
rallying the community to become active. And for Orange County, he said,
there’s still time. “What everybody needs to do is let their supervisor
know how they feel,“ Rains suggested. “Unless there’s a million people
contacting Wal-Mart they’re not going to care, but the supervisors
will.“ According to Orange County Director of Community Development
David Grover, a multi-phase archaeological study on the area where
Wal-Mart proposes to build has determined that “there has been no
evidence of encampments, movements of significance, or engagements on
the subject site. The consultants retained by Wal-Mart have advised me
that they have conducted Phase I and II archaeological studies of the
site and found nothing of significance.“ But during the special use
permit process, (which will include presentations by Wal-Mart
representatives, recommendations by county officials, and a public
hearing), more information may come to light about the project’s
potential negative and/or positive impacts on the county’s history and
its future. “I am cognizant of the proximity of the subject site to
significant portions of the Wilderness Battlefield, and the potential
impacts high intensity uses might have on historic resources. The
special use permit process affords the county the best tools to ensure
any adverse impacts are appropriately mitigated,“ Grover said. Wal-Mart
has yet to submit their application for a special use permit.
[back to top]
Wal-Mart
to start selling Apple's iPhone on Sunday
Associated Press,
12.26.08 [back to top]
Wal-Mart will start selling Apple's
popular iPhone on Sunday, the chain said, confirming earlier reports by
employees.
Bentonville-based Wal-Mart Stores Inc.
will become the second independent retail chain after Best Buy Inc. to
sell the phone. It is also sold at Apple Inc. and AT&T Inc. stores.
Wal-Mart will sell the phones for $2
less than the regular price with a two-year contract: $197 for the
8-gigabyte model, or $297 for the 16-gigabyte model. Best Buy is
discounting the phone by $9.
Reports that Wal-Mart would sell the
phone, but not the exact launch date or the terms, surfaced early this
month through store employees who had been briefed.
Copyright 2008 Associated Press. All
rights reserved
[back to top]
Walmart,
counties settle lawsuit over motor oil
By Jess Sullivan
Daily Republic
December 24, 2008 [back to top]
FAIRFIELD - Prosecutors from six
Northern California counties including Solano County sued Walmart and a
motor oil manufacturer Tuesday claiming their products were defective.
Walmart and Warren Distribution Inc.,
an Omaha Nebraska manufacturer of car products, have agreed to pay more
than $325,000 to settle the lawsuit, according to court records.
The lawsuit accused the companies of
violating five different sections of the state's business and
professions code and claimed the motor oil and lubricating products sold
to consumers were faulty and improperly labeled.
The prosecutor handling the lawsuit
for the Solano County District Attorney's office has agreed to divert
part of the settlement into a trust fund for an Alameda County consumer
fraud case. Identifying consumers injured in the case is 'infeasible,'
according to the prosecutor.
Judge Scott L. Kays must still agree
to the settlement. Kays hasn't scheduled any court dates to hear the
lawsuit.
[back to top]
Wal-Mart
agrees to pay workers up to $640 million
By SARAH SKIDMORE,
Associated Press
12.24.08 [back to top]
Wal-Mart Stores Inc., the world's
largest retailer, said Tuesday it will pay as much as $640 million to
settle 63 lawsuits over wage-and-hour violations, ending years of
dispute.
The discount retailer, which has more
than 1.4 million employees, said the amount it pays will depend on how
many claims are submitted by eligible workers and could range from $352
million to $640 million.
The agreement the company announced
Tuesday ends the vast majority of such cases against Wal-Mart (nyse: WMT
- news - people ). Each settlement still must be approved by a trial
court.
Wal-Mart faced 76 similar class action
lawsuits in courts across the country as of March 31, the company said
in its most recent 10-K filing with the Securities and Exchange
Commission.
The Bentonville, Ark.-based company
said many of the settled lawsuits were filed years ago and the
allegations are not representative of the company Wal-Mart is today.
"Our policy is to pay associates for
every hour worked and to provide rest and meal breaks," Tom Mars,
Wal-Mart's executive vice president and general counsel, said in a
statement.
The company declined to discuss the
case further. Lawyers for the plaintiffs did not return calls for
comment Tuesday.
Wal-Mart has been working steadily to
rehabilitate its image amid continuing scrutiny of its labor and
business practices.
Earlier this month, Wal-Mart said it
would pay up to $54.25 million to settle a class-action lawsuit alleging
it cut workers' break time and didn't prevent employees from working off
the clock in Minnesota.
Last year, Wal-Mart said it would pay
more than $33 million in back wages to thousands of employees after
turning itself in to the Labor Department for paying too little in
overtime over the previous five years. Also last year, a judge in
Pennsylvania ruled that Wal-Mart workers in that state who previously
won a $78.5 million class-action award for working off the clock will
share an additional $62.3 million in damages.
Under the announced agreement,
Wal-Mart will continue to use various electronic systems and other
measures to ensure its compliance with wage-and-hour policies and law.
Wal-Mart labor critics welcomed the
settlement but said it gives no indication the company is changing its
ways. Wal-Mart Watch Executive Director David Nassar said many workers
still suffer mistreatment.
He said such lawsuits could have been
avoided if the company had followed the law to begin with or allowed
workers to unionize for better representation of their rights.
"If these millions of workers had been
allowed union representation, they never would have had to hire lawyers
and wait years to get their paychecks," he said.
Nassar and others said Wal-Mart, which
has GOP ties, is settling the cases before the new presidential
administration takes over.
"Wal-Mart typically fights lawsuits to
the end more than any major corporation in America," said Burt P.
Flickinger III, managing director of Strategic Resource Group, a
retail-consulting firm. "So for the company to settle them within 30
days of President-elect Obama's inauguration indicates the company is
trying to do what it can to present a newer face to the new
administration and hope for the best given what the company did to try
and keep the new administration being elected."
Flickinger said the company is
changing, but still faces many of the labor hurdles that have riled its
critics for years.
However, Flickinger said "ultimately
everyone will be better off because of the settlement."
Richard D. Hastings, a strategist with
Global Hunter Securities, said the settlement was good news for
shareholders and Wal-Mart because it exacts only a one-time cost.
Wal-Mart, one of the few retailers
doing well in a dismal holiday season, said it would take an after-tax
charge to continuing operations of about $250 million, or approximately
6 cents per share, in its fiscal fourth quarter.
"This is a conclusion to the many
years of issues, and everyone should be glad that it is behind them,"
Hastings said.
Shares in Wal-Mart, which rose 70
cents to close at $55.29 before the settlement was announced, rose 21
cents further in after-hours trading.
AP Business Writer Anne D'Innocenzio
contributed to this story from New York.
Copyright 2008 Associated Press. All
rights reserved.
[back to top]
Wal-Mart and Plaintiffs' Counsel Announce Settlement of Most Wage and
Hour Class Action Lawsuits Against the Company
PRNewswire-FirstCall
Tuesday December 23 [back to top]
BENTONVILLE, Ark., Dec. 23 -- Today
Wal-Mart Stores, Inc. (NYSE: WMT - News) and attorneys for the
plaintiffs jointly announced the settlement of 63 wage and hour class
action lawsuits that have been pending against the company for several
years.
Each of the settlements is subject to
approval by the trial court, and the total amount to be paid will depend
on the amount of claims that are submitted by class members. Under the
agreements, the total will be at least $352 million, but no more than
$640 million. Also, as part of the settlements, Wal-Mart has agreed to
continue to use various electronic systems and other measures designed
to maintain compliance with its wage and hour policies and applicable
law.
As a result of the settlement, the
company will record an after-tax charge to continuing operations in its
fiscal fourth quarter of approximately $250 million, or approximately
$0.06 per share.
"Resolving this litigation is in the
best interest of our company, our shareholders and our associates," said
Tom Mars, executive vice president and general counsel, Wal-Mart Stores,
Inc. "Many of these lawsuits were filed years ago and the allegations
are not representative of the company we are today."
Mars continued, "Our policy is to pay
associates for every hour worked and to provide rest and meal breaks.
This is a commitment we make to the more than 1.4 million associates who
choose to work for Wal-Mart and serve our customers and members every
day. We have worked hard to have the right communication, processes and
systems in place to help us live up to this commitment."
The cases covered by these settlements
were brought by several different groups of plaintiffs' counsel.
Frank Azar of the law firm of Franklin
D. Azar & Associates, P.C., co-lead counsel in fourteen states, said,
"We are pleased with this settlement and believe it is fair and
reasonable for our clients. We are equally pleased that Wal-Mart has
made tremendous strides in wage and hour compliance and that it has
implemented and agreed to continue to follow state of the art compliance
programs so that these improvements will continue into the future. We
hope Wal-Mart's compliance programs will serve as an example to other
major retailers."
Carolyn Burton of the Mills Law Firm,
co-lead counsel in a group of 35 cases consolidated in Nevada and cases
covering four other states said, "After many years of hard fought
litigation, the parties have reached an agreement that values the work
of Wal-Mart's employees by providing both economic and injunctive
relief." Her co-counsel, Robert Bonsignore of Bonsignore and Brewer
added, "As a result of this settlement, Wal-Mart can now say that it has
taken action to make its stores a great place to shop and work."
[back to top]
Retail
giant Wal-Mart bids to enter Chile market
By TOM PARSONS ,
Associated Press
12.19.08 [back to top]
Wal-Mart Stores Inc. announced Friday
an effort to enter another Latin American market, with an offer to buy
all shares of the Distribucion y Servicio chain of supermarkets in
Chile.
Wal-Mart, the world's largest
retailer, said it has the support of the controlling shareholders of
D&S, the Ibanez family, which has agreed to sell a portion of its D&S
shares.
"These controlling shareholders will
enter into a long-term stockholders' agreement with Wal-Mart regarding
D&S, which will continue to operate with its existing leadership,
associates and brands," Wal-Mart said in a news release.
The retail giant said it would begin
Tuesday offering to pay 40.8 cents a share for D&S stock, a price
Wal-Mart said represented a premium of about 37.4 percent over the
stock's average closing price for the past 30 trading days.
Wal-Mart spokesman Kevin Gardner said
from the company's headquarters at Bentonville, Ark., that D&S operates
185 stores in Chile and is a "significant" player in the country's
grocery-retail sector.
"Moving into Chile is an important
step in implementing Wal-Mart International's strategy. We continue to
focus on portfolio optimization, global leverage and winning in every
market," said Wal-Mart vice chairman Michael T. Duke. "A successful
tender offer will give Wal-Mart the opportunity to be a significant
participant in Chile, which continues to have a strong and growing
economy among South American countries."
In Latin America, Wal-Mart already
operates in Argentina, Brazil, Costa Rica, El Salvador, Guatemala,
Honduras, Mexico, Nicaragua and Puerto Rico.
Craig Herkert, Wal-Mart International
president for the Americas, said Wal-Mart and D&S share "a laser focus"
on price leadership.
"Both companies also have the same
core values and business philosophies: respect for the individual,
service to the customer and striving for excellence," Herkert said.
The Wal-Mart release said completion
of the deal was conditioned on the U.S. company being offered at least
50.01 percent of the fully-diluted common shares of D&S.
The international business is
Wal-Mart's fastest-growing division, with profits rising 11 percent
during the most recent quarter, while U.S. profits rose 7 percent. Last
month, the company announced it was shifting more of its focus over the
next five years away from mature markets and to emerging markets like
Brazil and India to drive sales.
Wal-Mart stock closed Friday at
$55.74, up 33 cents a share. D&S shares closed at $19, unchanged.
Wal-Mart operates 4,100 stores in the
U.S., and 3,100 stores in other countries. The company reported sales of
$374.5 billion for the fiscal year that ended Jan. 31.
Copyright 2008 Associated Press. All
rights reserved.
[back to top]
Muslim-American files bias suit against Wal-Mart
By JEFF KAROUB ,
Associated Press
12.18.08 [back to top]
An Arab- and Muslim-American man filed
a $12 million lawsuit Thursday against a Wal-Mart store that caters to
his community - saying employees discriminated against him and fired him
because of his background.
Louay Kezy, 43, of Dearborn filed the
suit in Wayne County Circuit Court. He accuses Bentonville, Ark.-based
Wal-Mart (nyse: WMT - news - people ) and three employees at its
Dearborn store of violating his civil rights through threats, harassment
and dismissal after complaining about the employees' conduct.
The lawsuit uses aliases for the three
employees because their full names are unknown, but it said they will be
fully identified during the discovery process.
Wal-Mart spokesman Greg Rossiter said
he had not seen the lawsuit and could only confirm that Kezy had been
terminated. But Rossiter stressed Wal-Mart has a strict policy
prohibiting discrimination in any form.
"The Dearborn store has gone to great
lengths to serve the community there," he said.
The store opened in March with the
area's large Arab and Muslim population in mind. It offers hundreds of
items geared toward them, such as food and music. It also opened with 35
Arabic-speaking employees - noted in Arabic script on their badges - and
hired a local Arab-American educator to teach the staff cultural
sensitivity.
Kezy, who worked at the store from
March to August, said he was the only Arab or Muslim to work in the
stock room, where he said he endured jokes about terrorists and was
threatened by another employee. The lawsuit says his hours were reduced,
he was denied mandated break time and was "arbitrarily shuffled" between
departments after complaining to managers.
"They start telling me stuff - `We
don't like you. We hate you all,'" said Kezy, who remains unemployed.
"They want to beat me up. (One said), `I want to punch you in the
face.'"
After that threat, Kezy said he filed
a written report. He said a manager insisted on bringing in another
manager to serve as a translator during a meeting, but Kezy said he has
been in the U.S. for 28 years and speaks fluent English.
Kezy said he was told he had to
apologize to one of his managers, but he refused because he had done
nothing wrong. The lawsuit said he was suspended Aug. 11 and fired three
days later without explanation.
The lawsuit says Kezy has suffered
mental and emotional distress and seeks $12 million for compensatory and
exemplary damages, lost wages, the value of fringe benefits and attorney
fees.
Nabih Ayad, Kezy's attorney, said
efforts by the store to reach out to the Arab and Muslim community do
not appear to have helped his client.
"Employees committing these acts were
not Arab or Muslim, and the company did nothing to remedy it," Ayad
said.
Store officials said earlier this year
they spent more than a year studying the market and meeting with
community groups before opening the first-of-its kind store in the
region with one of the nation's largest Arab and Muslim populations.
Dawud Walid, executive director of the
Council on American-Islamic Relations' Michigan chapter, said a
representative of his organization was among those that met with
Wal-Mart officials before the store opened.
Walid said the store has done a great
deal of marketing and public relations, but added "there's a difference
between seeking to profit from the community" and having a "true
appreciation for diversity as well as workers' rights."
Copyright 2008 Associated Press. All
rights reserved.
[back to top]
Wal-Mart changes its rules on recovering money for medical expenses
By Rudi Keller,
Southeast Missourian
December 11th, 2008 [back to top]
Wal-Mart has changed the health
insurance rules that almost cost permanently disabled former employee
Debbie Shank her trust fund.
When the world's largest retailer
announced in April it would not pursue the money despite a U.S. Supreme
Court ruling that it could, the company also announced it was reviewing
the rules that prompted it to pursue the court case.
On Wednesday, Wal-Mart Watch, the
Washington, D.C.-based group that keeps a critical eye on the company,
announced it had learned the details of those rule changes and declared
the changes a victory for workers.
A spokesman for Wal-Mart, Greg
Rossiter, said the policies were put in place in April.
"Everyone was moved by Mrs. Shank's
extraordinary situation," Rossiter said. "The plan did not give us much
flexibility. We reviewed the guidelines of the trust that pays benefits
for our associates and family members and modified the plan to allow us
more discretion."
Jim Shank, Debbie Shank's former
husband, said he is grateful that national publicity surrounding the
case helped push Wal-Mart to change its policy. "I wish it wouldn't have
taken national outrage to push Wal-Mart to do the right thing, but I'm
glad the company listened to everyone who spoke up on our behalf."
Debbie Shank was a night stock clerk
at the Cape Girardeau Wal-Mart in 2000 when she was in a severe car
crash. The company's health insurance paid $469,000 for her care,
covering expenses until she won a $1 million settlement from the
accident. Attorneys fees and a $100,000 share for Jim Shank to care for
their three sons left a trust fund of $417,000.
The Wal-Mart insurance plan trustees
launched a lawsuit to recover the money remaining from the settlement.
Using a legal theory known as subrogation, the company said it had a
right to be reimbursed for medical expenses that were the responsibility
of another party when that third party had met its obligation.
While the giant company won the legal
battle, it lost the public relations war. An article about Shank's
situation that appeared in the Wall Street Journal prompted a wave of
publicity that included stories on CNN, NBC, Fox News and other national
outlets.
While the case was pending, Debbie and
Jim Shank's son, Cpl. Jeremy Shank, was killed while serving in Iraq.
Now, Wal-Mart Watch said, the company
has included new rules in its health plan documents for the plan year
beginning Jan. 1 that specifically exempt a worker left in Shank's
condition from being hit with a similar lawsuit. Shank has lived in a
nursing home since the accident. She has brain damage, can't walk or use
her arms and has a limited short-term memory.
"We applaud Wal-Mart for making this
positive change to its subrogation policy," David Nassur, executive
director of Wal-Mart Watch, said in a news release. "While we believe
Wal-Mart could have done the right thing much sooner, we are very
pleased with the end result. Wal-Mart still has a long way to go to
improve the quality and affordability of its employee health-care plans,
but this is a specific step in the right direction and a victory for
Wal-Mart workers."
The new rules, set out in the
explanation of worker benefits for the coming year, say the insurance
plan will not pursue recovery when the injury or illness involved
results in paraplegia or quadriplegia, severe burns, total permanent
mental or physical disability or death.
And in other cases, the rules say, the
recovery will be limited to no more than half of the amount recovered
from a third party. Rossiter declined to discuss the specific changes.
To do so could undercut Wal-Mart's competitive advantage, he said.
"Our focus is on providing the best
possible coverage that we can for our associates and their families," he
said.
As the corporation sought to portray
the changes as old news, Wal-Mart Watch spokeswoman Stacie Temple said
the company had not announced the specifics until it appeared in the
employee handbook. "Our whole point is that this particular change is a
very small step in making progress on their health-care plan and it is a
good step."
[back to top]
Sask. mayor worried Wal-Mart will close unionized store
By Niall McKenna,
CBC News
December 10th, 2008 [back to top]
The mayor of a southeastern
Saskatchewan community is worried the area's biggest retailer could
close, following a decision by the province’s labour board allowing
employees to unionize.
In a 71-page decision dated Dec. 4,
the Saskatchewan Labour Relations Board approved a request to certify
the Wal-Mart in Weyburn. All employees, except pharmacy, office staff
and department managers, are affected.
Wal-Mart was criticized after it
closed a store shortly after employees unionized in Jonquière, Que., in
2005, a move the company continues to blame on poor performance by the
store.
Now, concerns are being raised about
the future of the outlet in Weyburn, a city with a population of about
9,400.
“We're very concerned about losing a
major retailer in our community,” Weyburn Mayor Debra Button said. “We
worked too hard to get the Wal-Mart here … If the decision by Wal-Mart
is to close the store, we'll certainly be feeling that.”
Both Button and Weyburn-Big Muddy MLA
Dustin Duncan said they have received phone calls from residents worried
about the future of the store. Button said she has written the CEO of
Wal-Mart Canada to ask about the company’s intentions.
Wal-Mart Canada said it will appeal
the ruling to unionize, pointing out that many of the employees who
signed union cards no longer work at the Weyburn store.
“The fact that you’ve got a store now
with 104 associates … and only 29 of them were even there at the time of
the union’s application, really speaks to the fact that it would be a
bit of a stretch to assume that there is widespread support for that
store for this union,” said Andrew Pelletier, spokesman for Wal-Mart
Canada.
Changes to Saskatchewan’s Trade Union
Act this year made it a requirement that a secret ballot vote be held,
open to all employees in the proposed bargaining unit, before a union
can be certified.
Paul Meneima, president of the United
Food and Commercial Workers Union Local 1400, said the decision to
unionize the Weyburn store fits with the pre-2008 act, which allowed for
union certifications when 50 per cent of employees, plus one, signed
union cards.
Meneima stressed that the majority of
employees wanted the union at the time of the application, but said
workers have the right to seek decertification of the union if they
wish. He said he expects Wal-Mart to delay negotiations of a collective
agreement using the courts as long as possible.
The UFCW and Wal-Mart have been trying
to negotiate a collective agreement in Ste-Hyacinthe, Que., Canada’s
only other unionized Wal-Mart, for almost four years.
The decision to unionize the Weyburn
Wal-Mart came after almost five years of legal wrangling. The UFCW
applied for certification on April 14, 2004. During labour board
hearings, some employees made claims that the union intimidated them
into signing union cards. The board dismissed those claims, saying there
was no evidence.
Anthony Bianco, a writer for Business
Week and author of The Bully of Bentonville: How the High Cost of
Everyday Low Prices is Hurting America, said the unionization of the
Weyburn store has significance, not only for Canada, but also for North
America.
“Wal-Mart has always offered stiff
resistance to any attempts to organize,” said Bianco, pointing out that
the UFCW “basically gave up trying to organize in the United States in
2003.”
Bianco said Wal-Mart is worried that
by having a store with union members, it will “entice” other workers
across North America to organize.
“There’s no doubt that Wal-Mart
recognizes that, and that’s why they fight so hard to thwart the efforts
of their employees to get a union,” said Meinema.
The UFCW is awaiting labour board
decisions to unionize Wal-Mart stores in the Saskatchewan communities of
North Battleford and Moose Jaw.
[back to top]
Cop: Customer safety
'onus' on retailers
By WILLIAM MURPHY,
Newsday
December 10th, 2008
[back to top]
A Nassau County police inspector
Wednesday told a county legislative committee investigating the Wal-Mart
Black Friday "door-busters" sale tragedy that the onus for protecting
customers falls on retailers -- and not police.
Police Insp. Thomas Krumpter also said
that Nassau Police Commissioner Lawrence Mulvey would advocate the use
of protective barriers in a meeting next week with representatives of
retailers in Nassau.
Speaking before a hearing by the
Public Safety Committee of the Nassau County Legislature in Mineola,
Krumpter, the lead-off witness, said: "These types of situations in the
box stores and these door-buster type sales, the onus or responsibility
for the security and the safety of the customers falls with the retail
establishment."
The committee was expected to hear
testimony Wednesday from several witnesses regarding the stampede that
killed a security guard and injured five other people at a Wal-Mart
store in Valley Stream on the day after Thanksgiving.
That Friday is the traditional
kick-off to the holiday shopping season and is known as Black Friday --
because it is the biggest shopping day of the year, one that signals if
stores will have a profitable season.
Witnesses expected to testify include
representatives of the Retail Council of New York State and the county
emergency management commissioner.
"Black Friday was a terrible tragedy
and what we propose to do is shine a light on what happened so we can
prevent it from happening in the future," committee Chairman Joseph
Scannell (D-Baldwin) said in an interview Tuesday.
"I'm going to keep my mind open about
what should be done," Scannell said.
"We will listen to the testimony. I
don't want a knee-jerk reaction. I want to take a hard look at what
happened here, and that might mean we have pass to legislation."
Scannell said he had not made up his
mind, but he thought legislation might be necessary to require large
stores to consult with police before big sales events, and that stores
might be required to erect barriers to keep crowds away glass front
doors.
The stampede on Nov. 28 occurred after
people waiting in their cars for the 5 a.m. store opening tried to rush
by customers who had waited in line for hours, police said last week.
Glass doors were broken by the surging mob and temporary security worker
Jdimytai Damour, 34, of Queens, was trampled and died of asphyxiation,
police said.
[back to top]
Wal-Mart Says It Suspended Share Buybacks on Economy
By Chris Burritt,
Bloomberg
December 10th, 2008
[back to top]
Wal-Mart Stores Inc. said it suspended
its share repurchase program, citing the economy and “instability in
credit markets.”
The world’s largest retailer, based in
Bentonville, Arkansas, has bought back about $10 billion of the $15
billion of shares authorized by the board on May 31, 2007, Wal-Mart said
in a regulatory filing today.
The filing comes after Wal-Mart Chief
Financial Officer Thomas Schoewe told analysts Oct. 28 the company had
decided to “step back on share repurchases.”
Wal-Mart is the best performer among
the 30 companies of the Dow Jones Industrial Average this year and one
of the few U.S. retailers that reported higher comparable-store sales
last month.
Other retailers, including smaller
rival Target Corp., have also suspended buyback plans as almost $1
trillion in losses and writedowns by Citigroup Inc. and other financial
institutions have frozen credit markets and deepened the recession.
Wal-Mart fell $1.75, or 3 percent, to
$55.81 today in New York Stock Exchange composite trading. The shares
have climbed 17 percent this year, compared with a decline of 34 percent
in the Dow Jones Industrial Average.
The stock drop “was an overreaction to
the update in the 10Q and the use of the word ‘suspend,’” Joe Feldman,
an analyst at Telsey Advisory Group in New York, said today in a
telephone interview. The company’s “prior commentary used words like
‘step back’ and ‘pause.’”
Wal-Mart plans to “let things settle
down just a little bit before we re-enter the market,” Schoewe said at
an analyst meeting in Rogers, Arkansas in October. “It’s not that we
don’t have confidence in our stock.”
Wal-Mart had $5.92 billion in cash as
of the end of the third quarter, less than the $6.91 billion it had at
the end of the second quarter.
[back to top]
Weyburn
Wal-Mart workers unionize
By Bruce Johnstone,
Leader-Post
December 9, 2008
[back to top]
/*The United Food and Commercial
Workers Union has been certified to represent about workers at the
Wal-Mart in Weyburn.*/
REGINA -- After more than four years
of legal wrangling, the United Food and Commercial Workers Union (UFCW)
has finally been certified to represent about 85 workers at the Wal-Mart
store in Weyburn.
The Saskatchewan Labour Relations
Board (SLRB) issued a 71-page ruling Monday granting the UFCW the right
to bargain on behalf of the Wal-Mart employees.
Paul Meinema, president of UFCW Local
1400, which represents the Weyburn Wal-Mart workers, said the decision
has been a long time coming. “We applied (to the SLRB) on April 19,
2004,’’ Meinema said.
But an official with Wal-Mart Canada
said the company intends to challenge the decision based on changes to
the Trade Union Act and the board itself since the election of the
Saskatchewan Party government in November 2007.
“We’re disappointed that our
associates in Weyburn have not been given a chance to vote on whether or
not their store would become unionized,’’ said Andrew Pelletier,
vice-president of corporate affairs for Wal-Mart Canada.
“As a result, we expect to seek
reconsideration of this decision to certify this store without a vote,’’
Pelletier said.
Meinema said the ruling is consistent
with the pre-2008 Trade Union Act, which required 50 per cent of the
employees, plus one, to sign union cards to certify a bargaining unit.
The SLRB also ruled that UFCW Local
1400 “represents a majority of employees in the appropriate unit,’’
which includes all employees of Wal-Mart in Weyburn, except department
managers and above, pharmacy employees and office staff.
But Pelletier said the SLRB decision
“excludes 17 hourly associates from the bargaining unit. The jobs of
these 17 associates have been included in previous bargaining units
determined by Canadian labour boards, which calls into question their
exclusion from the (Weyburn) bargaining unit.”
He also noted that only 29 of the
original 85 employees who signed union cards are still with the company.
Pelletier added that the SLRB decision
should be reconsidered in light of the changes made to the Trade Union
Act requiring certification votes and the replacement of the SLRB
members, who made the decision.
“The individual who rendered this
decision is somebody who had been cancelled as the chair of the previous
labour board early in the year, many, many months ago. That is something
that also raises a question with respect to the decision.’’
The decision was handed down by the
previous SLRB chair James Seibel, who was replaced earlier this year by
the Saskatchewan Party government.
Under the Trade Union Act, following
certification, the parties have 20 days to begin contract negotiations
and 90 days to conclude a collective agreement. Failing that, the SLRB
could intervene to ask a third-party to help with negotiations or seek
proposals from both sides to develop a first contract.
The legal battle between UFCW and
Wal-Mart has been fraught with delays and appeals. After 19 months of
hearings before the SLRB, Wal-Mart sought leave to appeal to the Supreme
Court of Canada twice and were denied.
Employees at three of the Bentonville,
Ark.-based retailer’s locations in Quebec are already represented by the
union. Applications for unionization of two others in Saskatchewan are
before the labour board.
[back to top]
Wal-Mart to
pay $54.25M to settle Minn. lawsuit
By STEVE KARNOWSKI ,
Associated Press
12.09.08
[back to top]
Wal-Mart Stores Inc. said Tuesday it
will pay up to $54.25 million to settle a class-action lawsuit that
alleged the discount giant cut workers' break time and didn't prevent
employees from working off the clock in Minnesota.
The class includes about 100,000
current and former hourly workers who were employed at Wal-Mart Stores (nyse:
WMT - news - people ) and Sam's Clubs in Minnesota from Sept. 11, 1998,
through Nov. 14, 2008.
Wal-Mart has also agreed to maintain
electronic systems, surveys and notices to stay compliant with wage and
hour policies and Minnesota laws.
In July, a Dakota County judge ruled
against Wal-Mart in the lawsuit, saying the Bentonville, Ark.-based
retailer violated state labor laws 2 million times by cutting worker
break time and "willfully" not stopping managers from having employees
work off the clock. Court proceedings had been scheduled for next month
to determine punitive damages, and Wal-Mart could have faced more than
$2 billion in damages. Instead, the settlement announced Tuesday will
have a preliminary hearing for approval on Jan. 14.
Justin Perl, a lead attorney for the
plaintifffs, said he was "gratified that these hourly workers will now
be paid after seven years of litigation."
Wal-Mart spokesman David Tovar said
the company is committed to paying its workers for all time worked and
to make sure they get rest and meal breaks. Managers who violate its
policies are subject to punishment including firing, he said.
An undisclosed part of the settlement
will go to the state of Minnesota.
[back to top]
Wal-Mart
confirms suspension of stock buybacks
Associated Press,
12.09.08
[back to top]
Wal-Mart Stores Inc. confirmed Tuesday
in a government filing that it is temporarily suspending its stock
buyback program, citing the economic environment and instability in the
credit markets.
The world's largest retailer
officially announced the move in a quarterly statement filed with the
Securities and Exchange Commission. It said it considers several factors
in determining when to buy back shares, including its current cash
needs, the cost of borrowing and the market price of its common stock.
Wal-Mart (nyse: WMT - news - people
)'s chief financial officer, told investors at the company's analyst
meeting on Oct. 28 that the discounter did "step back" on its share
repurchase program in mid-October.
"It's not that we don't have
confidence in our stock, and in fact I like the value today, better
today, than I did a month ago, but we just thought to be consistent, to
be conservative ... we did step back," Schoewe told investors.
Wal-Mart had bought back shares of its
common stock from time to time under a $15 billion program approved by
the board of directors. As of Oct. 18, about $5 billion remained of the
total authorized.
Since January, Wal-Mart's stock has
risen 19 percent as the company has benefited from frugal shoppers
switching to cheaper stores and focusing on necessities as the economy
worsened. That marks a sharp contrast to other major retailers that have
seen their shares plunge.
Richard D. Hastings, a consumer
strategist with Global Hunter Securities, noted that Wal-Mart, like many
other companies, aims to preserve cash in a tight credit market.
He noted that companies' moves to buy
back shares had been a boost to the stock market during the last five
years, but at this point, "it's losing its influence on the market."
Wal-Mart shares fell $1.75, or more
than 3 percent, to close at $55.81 on Tuesday in an overall lower
market. Over the past 52 weeks, they have traded from $45.24 to $63.85.
Copyright 2008 Associated Press. All
rights reserved
[back to top]
Wal-Mart suspends
stock repurchase program
Associated Press,
12.09.08
[back to top]
Wal-Mart Stores Inc. is temporarily
suspending its stock repurchase program. The company, which is the
world's largest retailer, cites the economic environment and instability
in the credit markets.
The company announced the move Tuesday
in a quarterly statement filed with the Securities and Exchange
Commission.
From time to time, the discounter had
repurchased shares of its common stock under a $15 billion share
repurchase program authorized by the board of directors. As of Oct. 18,
about $5.0 billion remained of the $15 billion authorized.
Copyright 2008 Associated Press. All
rights reserved.
[back to top]
Wal-Mart Workers in Canada Store Granted Union Status
By Kevin Bell,
Bloomberg
December 9th, 2008
[back to top]
Workers at a Wal-Mart Stores Inc.
outlet in Canada will be represented by a union after more than four
years of legal challenges by the retailer, the United Food and
Commercial Workers said.
The Saskatchewan Labour Relations
Board granted union status yesterday to workers at a store in Weyburn,
Saskatchewan, the group said in a statement today. The application was
submitted in April 2004.
Employees at three of the Bentonville,
Arkansas-based retailer’s locations in Quebec are already represented by
the union. Applications for unionization of two others in Saskatchewan
are before the labor board.
In April 2007, the Supreme Court of
Canada declined to hear an appeal from Wal-Mart.
Wal-Mart closed a unionized tire and
lubrication shop in Quebec in October, citing costs tied to a labor
contract that was imposed by the Quebec Labour Relations Board.
Wal-Mart will ask the labor board to
reconsider its decision on the basis that workers didn’t have a
secret-ballot vote on union representation, Andrew Pelletier, a
spokesman for the retailer, said in a telephone interview.
Since the original application, the
legislation in Saskatchewan has been changed to require a vote,
Pelletier said.
Wal-Mart fell $1.75, or 3 percent, to
$55.81 at 4:02 p.m. in New York Stock Exchange composite trading.
[back to top]
Joint Statement from Wal-Mart and Counsel for Plaintiffs Regarding Wage
and Hour Class Action Case of Braun v. Wal-Mart
Market Watch
December 9th, 2008
[back to top]
MINNEAPOLIS & BENTONVILLE, Ark., Dec
09, 2008 (BUSINESS WIRE) -- Counsel for Plaintiffs and counsel for
Wal-Mart Stores, Inc., (WMT: Wal-Mart Stores, Inc News, chart, profile,
more Last: 54.72-1.09-1.95% 1:55pm 12/10/2008 Delayed quote data Add to
portfolio Analyst Create alert Insider Discuss Financials Sponsored by:
WMT 54.72, -1.09, -1.9%) jointly announce that they have reached a
settlement of a wage and hour class action against Wal-Mart in Minnesota
captioned Braun et al. v. Wal-Mart, Inc. et al. The class includes
approximately 100,000 current and former hourly associates who worked at
Wal-Mart Stores and Sam's Clubs locations in Minnesota from September
11, 1998 through November 14, 2008, and the settlement provides for
payment by Wal-Mart of up to $54.25 million, including a substantial
payment to the State of Minnesota. Also, as part of the settlement,
Wal-Mart has agreed to maintain various electronic systems, surveys, and
notices that will further compliance with wage and hour policies and
Minnesota laws. The settlement is subject to approval by the trial
court, and the exact amount paid to class members will depend on the
court's approval as well as on the number and amount of claims that are
submitted by class members. All parties believe this settlement is fair
and reasonable for all concerned. "We are satisfied with this
settlement, gratified that these hourly workers will now be paid after
seven years of litigation, and happy that the State of Minnesota will
receive the largest wage and hour civil penalty in its history," said
Justin Perl, of the Minneapolis law firm of Maslon Edelman Borman &
Brand, co-lead counsel for the class. Wal-Mart spokesperson David Tovar
added, "Wal-Mart is pleased that the court in Minnesota ruled in its
favor on many claims. Our policies are to pay every associate for every
hour worked and to make rest and meal breaks available for associates.
Any manager who violates these policies is subject to discipline, up to
and including termination. We remain committed to providing good jobs
with real career opportunity to the 1.45 million U.S. associates who
choose to work for Wal-Mart and serve our customers every day." A
hearing for preliminary approval of the settlement has been scheduled
for January 14, 2009. About Wal-Mart Stores, Inc. (WMT: Wal-Mart Stores,
Inc News, chart, profile, more Last: 54.72-1.09-1.95% 1:55pm 12/10/2008
Delayed quote data Add to portfolio Analyst Create alert Insider Discuss
Financials Sponsored by: WMT 54.72, -1.09, -1.9%) Wal-Mart Stores, Inc.
operates Wal-Mart discount stores, supercenters, Neighborhood Markets
and Sam's Club locations in the United States. The Company operates in
Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala,
Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom
and, through a joint venture, in India. The Company's securities are
listed on the New York Stock Exchange under the symbol WMT. More
information about Wal-Mart can be found by visiting
www.walmartstores.com. Online merchandise sales are available at
www.walmart.com and www.samsclub.com.
[back to top]
Wal-Mart fined, fesses up to charging illegal taxes in Connecticut
By George Gombossy,
The Hartford Courant
December 7th, 2008
[back to top]
After denying for weeks that it was
violating Connecticut laws by charging a second tax on exchanges,
Wal-Mart has agreed to change its practice and pay a $2,500 fine.
Wal-Mart also agreed to refund all
customers who can show that when they returned an item for an even
exchange they were charged a second tax.
The agreement between Wal-Mart and the
state Department of Consumer Protection was made last week.
It came after state tax officials
refused to look into more than a dozen complaints I had forwarded them
from customers who were required to pay sales taxes when they bought an
item and again when they exchanged that item for a similar one. Most of
the complaints involved Wal-Mart.
Wal-Mart charged the tax for people
who didn't have receipts as well as some who had credit card statements
proving that they had bought the item recently. The taxes were turned
over to the state.
Customers wrote that this illegal
policy was being followed in at least a dozen of its stores in
Connecticut, a fact I verified at several stores.
Stores even had posters behind
courtesy desks blaming the state for its policy.
"State law PROHIBITS Wal-Mart from
refunding SALES TAX to any customer returning or exchanging merchandise
without an original purchase receipt," the "tax refund laws" posters
said.
However, state tax laws clearly say
the opposite, state Consumer Protection Commissioner Jerry Farrell Jr.
said Wednesday in an interview explaining the out-of-court settlement he
reached with Wal-Mart.
State laws mandate that if a company
has an exchange policy, it cannot charge a second sales tax on the new
item. Wal-Mart's website clearly says it has such an exchange policy.
Besides Wal-Mart, Farrell said state
Director of Trade Practices Richard E. Maloney and his unit investigated
return and exchange policies at Target, Best Buy, Home Depot, Lowe's,
Babies "R" Us, Sam's Clubs and Toys "R" Us.
As the result of the investigation,
Farrell and Maloney said Babies "R" Us, Home Depot and Target are being
sent letters asking the companies to improve training because they found
uneven procedures in implementing state laws on taxes. None faces
sanctions.
Lowe's, Sam's Clubs, Toys "R" Us and
Best Buy were found to be following tax laws properly.
The issue arose when Gerald Dierman of
Manchester questioned whether Home Depot was following state laws when
the store charged him sales tax on his original purchase of a bag of
grout and again when he returned it the next day for the same grout, but
of a different color. Home Depot told him they could not give him a
refund on his sales tax without a receipt.
After printing his issue, I received
numerous complaints about other Home Depot stores, Wal-Mart and Babies
"R" Us.
Home Depot officials conceded that
their stores erred and said they would train their personnel to follow
state laws consistently. They also gave gift certificates to those who
were charged a second tax.
Wal-Mart, on the other hand, insisted
its stores were doing nothing wrong.
"I believe I've answered your question
already, but I'll gladly do it again. Walmart's policy is to satisfy the
customer and follow the law. Thanks again," Wal-Mart spokeswoman Ashley
Hardie wrote me Oct. 14 after I sent her additional complaints.
On Friday, Wal-Mart was singing a
different tune.
"We thoroughly reviewed our practices
and have taken steps to ensure that our associates are fully complying
with Connecticut law when processing even exchanges," Hardie said in an
e-mail.
[back to top]
How did
this happen?
Wal-Mart Watch
[back to top]
Like many of you, I was outraged and
saddened when I heard about Jdimytai Damour, the Long Island Wal-Mart
employee who was trampled to death by holiday shoppers. In a statement
yesterday, I extended our sincere condolences to the family of Mr.
Jdimytai Damour.
I want to know how and why this
happened.
Yes, there is plenty of blame to go
around - including the thousands of Wal-Mart shoppers who participated
in the stampede.
The responsibility, however, lies with
Wal-Mart. As Mr. Damour's employer, the company put him in that position
and made all of the decisions that led to that moment. Wal-Mart's
management did not have enough trained employees in place, nor did they
use common sense policies to discourage the customers from rushing the
store.
Why? It would have cost Wal-Mart money
to take those precautions, and the workers had no voice in the
decisions.
Take a moment to send an email to
executives at Wal-Mart and demand that they take responsibility for
Wal-Mart's refusal to take precautions to protect their employees:
http://www.walmartspeakout.com/accountable
Here at Wal-Mart Watch, we hear the
stories of so many employees frightened to stand up for their basic
rights, worried that they'll lose their jobs for speaking up.
Wal-Mart employees have been forced to
work overtime without compensation, denied lunch and bathroom breaks,
and threatened for requesting reasonable changes in their schedule.
Now more than ever, we need to stand
up for Wal-Mart employees and give them the opportunity they need to
fight for higher wages, better health care, and safer work conditions.
Please send an email to Wal-Mart's
management to hold them accountable for Wal-Mart's failure to protect
its employees and prevent this tragedy. Wal-Mart simply must change its
ways and start treating its employees with the dignity and respect they
deserve.
http://www.walmartspeakout.com/accountable
Our thoughts and prayers are with
Jdimytai Damour's family this holiday season.
Thank you, and have a happy - and safe
- holiday season.
David Nassar
Wal-Mart Watch
[back to top]
Trampled man's family accuses Wal-Mart of inciting 'crowd craze'
The Associated Press
December 4th, 2008
[back to top]
Reporting from Garden City, N.Y. --
The family of a worker trampled to death in a crush of bargain hunters
Friday at a Long Island Wal-Mart store filed a wrongful-death lawsuit
Wednesday, alleging store ads offering deep discounts "created an
atmosphere of competition and anxiety" that led to "crowd craze."
The lawsuit alleges that besides
failing to provide adequate security for a predawn crowd estimated at
2,000, Wal-Mart "engaged in specific marketing and advertising
techniques to specifically attract a large crowd and create an
environment of frenzy and mayhem and was otherwise careless, reckless
and negligent."
Wal-Mart issued a statement saying it
would cooperate with local law enforcement officials to develop stronger
safety measures for the future.
"We consider Mr. Damour part of the
Wal-Mart family and are saddened by his death," the statement said. "We
have been in communication with members of his family to do what we can
to help them through this difficult time. Our associates know that when
incidents like this occur, we take care of our own."
In addition to the retailer, the
adjacent Green Acres Mall, a realty company that manages the property
and a security company hired to patrol the property were named as
defendants. A spokeswoman for the realty company declined to comment on
pending litigation; none of the other defendants immediately responded
to phone and e-mail inquiries.
Jdimytai Damour, 34, had been hired by
an employment agency as a temporary worker at the store in Valley Stream
and had been on the job about a week when he died, said his family's
lawyer, Jordan Hecht.
The 6-foot-5, 270-pound Damour died of
asphyxiation after being crushed early Friday morning by the crowd,
which broke down the store's doors in frantic pursuit of bargains. At
least four other people were treated at hospitals, including a woman who
was eight months pregnant.
Authorities suspect that, because of
his size, Damour was stationed at the entrance of the store to assist
with crowd control.
"Those hundreds of people who did make
their way into the store, literally had to step over or around him or
unfortunately on him to get in," Nassau County Police Commissioner
Lawrence Mulvey said.
Police are reviewing store video to
identify possible suspects in the death, but Mulvey conceded criminal
charges were unlikely.
[back to top]
Victim's
kin file suit in Wal-Mart stampede death
By FRANK ELTMAN ,
The Associated Press
December 3rd, 2008
[back to top]
GARDEN CITY, N.Y. (AP) — The family of
a New York man who was trampled to death the day after Thanksgiving by a
stampede of bargain hunting Wal-Mart shoppers has filed a wrongful death
lawsuit.
The family also filed notice that
Nassau County, on Long Island, and its police department will be sued.
The lawsuit against Wal-Mart and the
Long Island mall where it is located was filed Wednesday in state
Supreme Court in the Bronx on behalf of Elsie Damour Phillipe. Phillipe
is the sister of victim Jdimytai Damour (DHMEE'-tree Di-MOHR'), and is
the court-appointed administrator of his estate.
Damour, a temporary worker hired for
the holiday season, was crushed to death when some 2,000 customers
stormed into the Valley Stream store.
None of the defendants in the lawsuit
immediately responded to requests for comment.
[back to top]
Accused
Walmart Shoplifter Stabs Kansas City Officer
Fox 4, Kansas City
December 3rd, 2008
[back to top]
KANSAS CITY, MO -- A Kansas City
Police Officer was stabbed in the head by a suspected shoplifter at a
Walmart store on 40 Highway and I-70. The officer was reportedly trying
to put the suspect into a paddy wagon when he was stabbed. There's no
word on the extent of the officer's injuries. FOX 4 will bring you more
information as we get it.
[back to top]
Group Fights Wal-Mart to Preserve Historic Civil War Battlefield
ABC 7 News
December 2nd, 2008
[back to top]
ORANGE, Va. - A group is fighting to
stop a Wal-Mart from being built near the Civil War-era Wilderness
Battlefield in Orange, Va.
Wal-Mart opponents have enlisted help
from Union leader Ulysses S. Grant and Confederate General Robert E. Lee
in an online advertisement. "We weren't exactly on the same side when we
were alive," the ad says. "But on one thing, we agreed; we agreed that
Wal-Mart should not build a giant supercenter here, at the historic
Wilderness Battlefield in Virginia."
Opponents have declared war on the
retail giant's proposal to build a 145,000 square foot store right next
to the historic Wilderness Battlefield, one of several of its kind in
the historic area. "This is what we consider hallowed ground," said
Craig Rains of Friends of Wilderness Battlefield. "When you get a
commercial property development like that, it destroys the feeling of
this hallowed ground."
One-hundred and sixty thousand troops
took part in the famous Civil War battle in May 1864. It was a draw, but
led to the north changing its strategy and defeating the south.
Wal-Mart wants to buy 20 acres of land
behind the Wilderness Shopping Center on Route 3 at Route 20. It's
already zoned commercial and would provide 300 jobs, most of them full
time.
Wal-Mart currently has five other
stores in the area, including one going up in nearby Stafford County.
"I think it'd be a good benefit," said
area resident Fred Sekely. "Save a lot of time going all the way into
town, and probably promote a lot of jobs in this area."
Others in the area, however, don't
want more traffic and development. "There's already a Wal-Mart10 miles
that way and a Wal-Mart 10 miles that way, said Colby Cobb."Do we really
need one right here?"
In a statement, Wal-Mart declared,
"we're definitely committed to this site." They added, "we're cognizant
of (the battlefield issue) and planning to put in appropriate buffers."
That could mean leaving some acreage undeveloped.
[back to top]
Lawyer:
Trampled NY worker lacked crowd training
By FRANK ELTMAN ,
Associated Press
12.02.08
[back to top]
A worker trampled to death when
customers stormed a Wal-Mart for bargains on the day after Thanksgiving
had no experience in crowd control and was placed at the entrance
because of his hulking frame, police and a lawyer said Monday.
The details about the deadly stampede
came out as police pored over video surveillance provided by the store
while considering possible criminal charges. Lawyers were also preparing
to sue over the episode.
Nassau County Police Commissioner
Lawrence Mulvey noted that the worker, Jdimytai Damour, was 6 feet 5 and
270 pounds, making the trampling all the more stunning. He was killed
when a crowd estimated at 2,000 strong broke down the electronic doors
in frantic pursuit of bargains on big-screen TVs, clothing and other
items.
"Literally anyone, those hundreds of
people who did make their way into the store, literally had to step over
or around him or unfortunately on him to get into the Wal-Mart (nyse:
WMT - news - people ) store," said Mulvey.
Mulvey said an autopsy found that
Damour, 34, died of asphyxiation related to his trampling, and he
conceded that it would be difficult to file criminal charges against any
of the shoppers.
It goes beyond identifying specific
people to make a case," Mulvey said. "You have to establish recklessness
or intent to harm, which led to his death."
Attorney Jordan Hecht, who represents
Damour's three sisters, said the family declined to make any public
statements about the man's death. Funeral arrangements were pending, he
said.
[back to top]
Wal-Mart Assailed on Death
By Ann Zimmerman,
The Wall Street Journal
December 2nd, 2008
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Wal-Mart Stores Inc. should have had
better crowd control to prevent the death of a worker who was trampled
the day after Thanksgiving amid the bargain-hunting frenzy whipped up by
the sales known as door-busters, according to local police and a lawyer
for the worker's family.
Police say Jdimytai Damour, a
34-year-old temporary maintenance worker, was pushed to the ground and
asphyxiated when an estimated 2,000 shoppers broke through the glass
doors at a Wal-Mart store on Long Island, N.Y., as they raced to buy a
limited assortment of sharply discounted television sets, computers and
other gifts in the predawn hours early Friday.
Wal-Mart defended its procedures and
said on Monday that it is cooperating with law-enforcement officials.
Shopper stampedes aren't new. Often,
during the Thanksgiving weekend that starts each holiday-shopping
season, reports emerge of people who were injured in the mad dash to
snap up discounts.
Wal-Mart faced several lawsuits from
customers who claimed they were hurt by out-of-control shoppers seeking
talking Furby dolls in 1998. Five years ago, after a woman cut in line
at Toys R Us in Bossier City, La., two shoppers who had waited in line
for hours pushed her and grabbed her by the neck.
Jordan Hecht, a personal-injury
attorney retained by Mr. Damour's three sisters, said Wal-Mart didn't
have enough security guards at the Long Island store and the staff
wasn't properly trained.
"Hundreds of stores around the country
have these kinds of sales, but a tragedy only happens if you don't
prepare," Mr. Hecht said. "You need to have people line up in a queue in
an orderly fashion, with people giving them updates."
Mr. Hecht will decide whether to file
a lawsuit against the retailer and possibly other parties after he
reviews all the police reports, he said.
Mr. Damour was hired through a
temporary-employment agency; if he is deemed to be a Wal-Mart employee,
the retailer's liability may be limited under New York state's
worker-compensation laws, Mr. Hecht said.
Wal-Mart defended the precautions it
took at the Long Island store. The retailer said it set up barricades,
hired third-party security guards and had extra staff on hand. Security
is handled on a store-by-store basis, according to Wal-Mart spokesman
David Tovar.
As the crowd increased to 500 in the
middle of the night, someone called Nassau County police; two officers
helped the crowd form an orderly line, said Lt. Kevin Smith, head of the
county's public-information office.
"We went above and beyond the call of
duty," Lt. Smith said. "Our jobs are not to act as Wal-Mart's security
guards. It did not appear that there were enough security guards
visible."
The police said they believe the line
was orderly until the victim went to open the store's interior doors at
5 a.m., and a crowd of people who hadn't been on line surged through the
doors, trampling Mr. Damour.
To prepare for the crowds and
potential mayhem that Black Friday discounts tend to invite, retailers
usually hire extra workers and extra security guards. Black Friday is
typically the day that retailers become profitable for the year.
In addition to those steps, Best Buy
Co. controls its electronics-hungry shoppers by roping off an area
around each store, so shoppers line up in single file, said a
spokeswoman, Sue Busch. Workers try to defuse tension by joking with the
shoppers and, an hour before the doors open, they hand out tickets for
each hot product in limited quantity, to deter shoppers from rushing the
doors. Best Buy employees do role-playing drills and other preparations
for several hours in advance of its day-after Thanksgiving sale.
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VIDEOS
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Fighting
Wal-Martization 25min. (2005)
A new video by
The Labor Video Project 25 min.
(2005)
Wal-Mart is now the largest private
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For more info:
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Wal-Mart: The
High Cost of Low Prices (www.walmartmovie.com)
Independent America: The Two Lane Search for Mom & Pop
(www.independentamerica.net)
Big Box
Mart
(www.jibjab.com)
Garth
Brooks Parody
(www.walmartworkersrights.org)
"Is Wal-Mart
Good for America?" Frontline, PBS Video,
(www.pbs.org)
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NON-FICTION
The Case Against Wal-Mart By Al Norman Raphel
Marketing ruth@raphael.com
Wal-Mart: The Face Of Twenty-First Century Capitalism Edited By
Nelson Lichtenstein The New Press
www.thenewpress.com
The Great Risk Shift: The Assault on American Jobs, Families, Health
Care and Retirement By Jacob S. Hacker Oxford University Press
www.oup.com
War On The Middle Class: How the Government, Big Business, and Special
Interest Groups Are Waging War on the American Dream and How to Fight
Back By Lou Dobbs Viking, a member of Penguin Group
www.penguin.com
Momentum: Igniting Social Change in the Connected Age By Allison H.
Fine Jossey-Bass www.joseybass.com
Big-Box Swindle: The True Cost of Mega-Retailers
and the Fight for America's Independent Businesses, By Stacy
Mitchell, www.beacon.org
www.newrules.org
Wal-Mart: The Face Of the Twenty-First-Century
Capitalism, Edited by Nelson Lichtenstein, Published by The New
Press
www.thenewpress.com
The Bully Of Bentonville - How the high cost of
Wal-Mart's Everyday Low Prices is Hurting America, By Anthony Bianco,
Published by Doubleday
Email:
specialmarkets@randomhouse.com
How Wal-Mart is Destroying
America (and the world), By Bill Quinn,
Published By Ten Speed Press, Box 7123, Berkeley, CA 94707,
www.tenspeed.com (pp. 163)
Slam
Dunking Wal-Mart, By Al Norman, Published By
Raphel Marketing, 12 S. Virginia Avenue, Atlantic City, New Jersey
08410,
www.sprawl-busters.com (pp. 237)
The
Great American JobsScam, By Greg LeRoy,
Published By Barrett-Koehler Publishers, Inc., 235 Montgomery Street,
Suite 650, San Francisco, CA 94104-2916,
www.bkconnection.com (pp. 257)
Nickel
and Dimed, By Barbara Ehrenreich, Published By
Henry Holt and Company, LLC, 115 West 18th Street, New York,
NY 10011,
www.henryholt.com (pp.221)
United
States of Wal-Mart, By John Dicker, Published
By Jeremy P. Tarcher (Penguin Group usa),
www.us.penguingroup.com (pp.257)
The Wal-Mart Effect, By Charles Fishman
www.penguin.com
Megamall On The Hudson, By David Porter and
Chester L. Mirsky
www.trafford.com
FICTION
Death
By Discount, By Mary Vermillion, Published By
Alyson Publications, P.O. Box 4371, Los Angeles, CA 90078-4371,
www.maryvermillion.com (pp. 275)
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