Thursday, January 12, 2006

The secret of Wal-Mart's success: indentured servants

A judge approved a class-action lawsuit against Wal-Mart Stores Inc. by employees in Pennsylvania who say the company pressured them to work off the clock, claims that mirror those in suits filed around the country.

A California jury last month awarded Wal-Mart workers $172 million for illegally denied lunch breaks, while Wal-Mart settled a similar Colorado case for $50 million.

In Pennsylvania, the lead plaintiff's suit alleges she worked through breaks and after quitting time -- eight to 12 unpaid hours a month, on average -- to meet work demands.

''One of Wal-Mart's undisclosed secrets for its profitability is its creation and implementation of a system that encourages off-the-clock work for its hourly employees, ...'' Dolores Hummel, who worked at a Sam's Club in Reading from 1992-2002, charged in her suit.

More at the NYTimes