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March 8, 2010

Walmart will pay $11.7 million

Distribution center lawsuit settled

LAUREL COUNTY, Ky. — Of more than 4,000 femal applicants, many may have been denied jobs at the London Walmart Distribution Center during a 12-year period simply because of their gender.

And Walmart, the nation’s largest private employer, has agreed to pay $11.7 million in a sexual discrimination settlement to compensate them.

The settlement came Monday when the retail giant avoided a trial against the U.S. Equal Empoyment Opportunity Commission for refusing to hire women for order filler positions between 1998 and February 2005.

The lawsuit was filed by the EEOC in 2001. It claimed the Walmart Distribution Center in London used general stereotypes in filling the positions that required lifting, and they instead hired 18- to 25-year-old males for those positions.

Nancy Dean Edmonds, senior trial attorney for the Indianapolis EEOC office, said  during that time, the London distribution center “continually interviewed for ‘whatever’ position, which was most often as an order filler.”

These positions were in four different areas of the warehouse and required lifting up to 50 pounds in some areas, and 70 pounds in others.

“The job did not require constant lifting of 50 to 70 pounds all day long,” Edmonds said. “According to witnesses, most of the product was lighter, averaging 20 to 25 pounds.

Edmonds said between 1998 through 2002, the London Walmart Distribution Center  “used general interview forms and didn’t ask specific questions.” She said  Walmart’s application and interview process underwent revision in 2002 for “determination of questions related to jobs.”

Walmart did not use any testing to determine an applicant’s capability to do certain jobs, she said.

“Some of these women who applied for jobs — and were denied — had some order filling experience, some had built houses, some had poured concrete. They were denied jobs just because they were women.”

Sex discrimination in the workforce was prohibited by the Title VII of the Civil Rights Act of 1964.

The men who were hired were often younger men right out of high school, Edmonds said.

“Some of them had bad references and bad work history and little or no order filling experience. Some did not even have high school diplomas.”

According to the settlement, the London Walmart Distribution Center will provide order filler jobs, as they are available, to eligible and interested women for the first 50 women, as determined by a claims administrator. Women will be offered every other job for the next 50 positions, and every third position after that.

“Forty plus years after the passage of the Equal Pay Act and Title VII of the Civil Rights Act, far too many employers are still blatantly excluding women from particular jobs, segregating their workforces on the basis of sex, and denying women equal pay for equal work,” said Acting EEOC Chairman Stuart J. Ishimaru. “Let this major settlement serve as a warning: Employers must stop engaging in these outdated and sexist practices, or they will face severe legal consequences.”

Walmart has also agreed not to discriminate or retaliate against women who apply or have previously applied and were denied jobs as part of the settlement. They also agreed not to retaliate against applicants who exercise their rights, complain about discrimination or assist in an investigation or discrimination-based proceeding.

They are required to post non-discrimination notices in their Kentucky warehouses and use the validated interview questions for the order filler position. Walmart is also required to submit reports to EEOC each year of its compliance to the settlement decree.

“Although it took a long time, we are pleased that women who want to work at the London Distribution Center will now be able to do so and those who were rejected will be compensated for their losses and offered jobs,” Edmonds said in a written statement released to news media.

The people affected by the discriminatory acts will receive monetary compensation, which Louisville EEOC Senior Trial Attorney Aimee McFerren said will be based upon the applicants’ experience, qualifications and compensation.

“It is satisfactory to know that the EEOC’s efforts will allow the women in eastern Kentucky affected by Walmart’s discriminatory practices to better themselves and their families,” McFerren said.

According to company information, Walmart has more than 8,416 retail units in 15 countries under 53 different business ventures. During fiscal year 2009, the retail giant reported sales of $40 billion and had 2.1 million employees worldwide.

“We’re pleased this matter has been resolved,” said Greg Rossiter, Walmart spokesperson from its Benton, Ark., headquarters. “These claims do not reflect Walmart’s continuing commitment to build an even more diverse and inclusive workplace through hiring and training initiatives. We respect and value the unique talents each associate contributes to the company’s ability to make a difference in the lives of our customers.”

The settlement administrator will contact women involved in the settlement, and updated information will be listed on the EEOC vs. Walmart information line at (317) 226-5485.                                        



Staff Writer Nita Johnson can be reached by e-mail at njohnson@sentinel-echo.com.

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