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Warehouse Workers Allege Walmart Suppliers Understated Work Hours

Posted: 03/05/12 02:08 PM ET  |  Updated: 03/05/12 02:08 PM ET

Warehouse Workers Walmart

Ever wonder how Walmart gets the price of toilet paper so damn low? In part, it could be because the workers who distribute products are paid below minimum wage, according to the allegations of a new lawsuit.

A class-action lawsuit filed against three Los Angeles-area based companies that handle Walmart's goods alleges that the firms pressured supervisors to understate the number of hours employees worked so that they could pay them less, according to MSNBC. Walmart and other retailers aren't named in the suit -- a situation that often occurs because the companies don't directly pay the workers -- but the warehouse practices ultimately help products land on the big box shelves at cheap prices.

The Huffington Post previously reported that the class-action suit alleges workers "spend their workdays performing strenuous, unskilled physical labor in an environment where the temperature often exceeds 90 degrees." Furthermore, bosses "routinely responded with threats of retaliation and actual retaliation, including by sending the inquiring workers home without pay, refusing to give them work the next day ... and imposing other forms of discipline on them."

These types of warehouses are staffed by a large number of workers hired through temporary agencies to do difficult and often unstable work. Over the past decade and a half, Joliet, Illinois and its environs -- a region southwest of Chicago -- has turned into one of the world's largest hubs for dry goods heading to retail stores across the Midwest. It's also become an area with one of the highest concentration of temp workers in the Midwest, indicating the big-box industry's reliance on workers hired by third-party companies to staff warehouses they don't own.

Even when these temporary warehouse workers are paid legitimately, their wages are still $3 lower on average than that of their permanent counterparts, according to Mother Jones. But they make up more than 15 percent of the packers and pickers work in warehouses and often stay classified as temporary for years.

Some warehouses allegedly subject workers to terrible conditions and the employees stick with the companies for fear of being without work in a trying job market. An Allentown, Pennsylvania-based warehouse owned by Amazon.com reportedly had paramedics on standby to treat employees that couldn’t stand the 110-degree heat, according to a September report from the Morning Call. In addition, many of the employees were alleged forced to work 11-hour days during the holidays and maintain productivity levels even during the summer heat.

California warehouse workers have previously been threatened with layoffs for complaining about wage violations and unsafe working conditions.

Earlier on HuffPost:

FOLLOW BUSINESS

Ever wonder how Walmart gets the price of toilet paper so damn low? In part, it could be because the workers who distribute products are paid below minimum wage, according to the allegations of a new ...
Ever wonder how Walmart gets the price of toilet paper so damn low? In part, it could be because the workers who distribute products are paid below minimum wage, according to the allegations of a new ...
Filed by Jillian Berman  | 
 
 
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HUFFPOST SUPER USER
wildanimalover
09:57 PM on 03/08/2012
I had temporary jobs in California between 25-30 years ago and I was always paid more than the average worker at the companies they placed me. Guess times have changed.
09:33 AM on 03/07/2012
Why was Walmart even mentioned in this article, even in the headline? It's like being sued for a workplace accident at the lumberyard that supplied the wood for your house. "Well you wanted the house cheap, so you're liable."
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HUFFPOST SUPER USER
Martin Beck
was whelped in the back seat of a desoto sky view
08:28 PM on 03/06/2012
we need to bring back strong unions ! Ronal Reagan who was a Union President , became president and killed the unions starting the over worked air controlers union . its desgraceful !
HUFFPOST SUPER USER
stir crazy 777
Joe Bageant - Redneck Poet
07:14 PM on 03/06/2012
Saipan is the largest of 15 islands that make up the Commonwealth Of The Northern Mariana Islands. Saipan could label their products Made In The USA. however they did not have to follow the labor laws of the U.S.Tom Delay killed a bill that would have forced Saipan to follow the labor laws of the United States(including minimum wage,overtime etc).The employees are housed behind locked gates in barracks and are paid way below minimum wage under horrible working conditions.Delay actually gave a speech to the factory owners praising them for being a model of the free market economy.This is sick and for won't of a better word downright EVIL.
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HUFFPOST SUPER USER
chris hatala
05:25 PM on 03/06/2012
The tpubs dream, the Walmarting of America, no unions, no minimum wage, no labor laws, this is the tpubs dream.
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HUFFPOST SUPER USER
lrobb
Gold Standard = four paws and a tail
03:56 PM on 03/06/2012
The next frontier for robotics is the warehouse. As soon as a robot can recognize a bar code and adjust itself for the size of an individual pallet humans are going to be obsolete in this work environment. Picking and packing will be done by Snow White and the Seven Drones.
03:36 PM on 03/06/2012
This is what the Republicans like to refer to as Good American Middle Class jobs......cause we'll have a lot more of this guaranteed come next year with a Republican win. Keep it all cheap and unregulated so the guys at the top can make a few more million
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HUFFPOST SUPER USER
Becky Bartlett
Perfectly capable of regulating my own uterus
03:27 PM on 03/06/2012
Proud to say I haven't shopped at a WalMart in 8 years.
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HUFFPOST SUPER USER
First Blast
res ad triarios venit
04:01 PM on 03/06/2012
Does your husband?
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HUFFPOST SUPER USER
chris hatala
05:25 PM on 03/06/2012
Me either.
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OutAtFirst
Mountain goat, desert rat and sea dog
02:31 PM on 03/06/2012
If corporations can be people, then surely people can be machines. It has a bad wheel? Throw it in the scrap heap and get another.
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CarlyQ
Without followers, evil cannot spread.
11:45 AM on 03/06/2012
Quite the Catch 22 - pay the workers as little as possible so they have no choice but to shop at Wal-Mart.

This is awfully closed to indentured servitude.
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SpongeBrad
Republicans Crashing the economy since 1929
01:45 PM on 03/06/2012
Company town is more the model
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HUFFPOST SUPER USER
chris hatala
05:26 PM on 03/06/2012
This is a cracker economy.
11:36 AM on 03/06/2012
My friend owns a label company and subcontracts his disposal out. He just got hit with a bill just because some gov. agency decided he should pay a little more.
HUFFPOST SUPER USER
theRealAmerica
bruised,battered and scarred...but hard
11:42 AM on 03/06/2012
Really? That's what they decided huh...
04:09 PM on 03/06/2012
More to the point, he has a fiend?
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NJProgressiveIndie
Never Surrender...
11:34 AM on 03/06/2012
Welcome to the China/Foxcomm-ization of the American Workforce--courtesy of Citizens United, the brothers Koch, and the GOTeaP....
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HUFFPOST SUPER USER
chris hatala
05:28 PM on 03/06/2012
Don't forget Americans for Prosperity not.
11:14 AM on 03/06/2012
"Responsibillity of the temp agency."

Nope, the courts have ruled when you sub out the business is responsible for what the agency does or does not.

A lot of companies who work within Walmart are told they are also employeers of Walmart.
So they can set hours as they see fit.

What a lying stealing organization. They force vendors to keep prices down and do not offer the lowest prices-go to other stores in the area and compare.
HUFFPOST SUPER USER
db025
10:57 AM on 03/06/2012
>"These types of warehouses are staffed by a large number of workers hired through temporary agencies"<

This is nothing but a WalMart slam piece. If the workers are temps it is the responsibility of the hiring agency to see that they are paid correctly, not WalMart. The temp agency charges WalMart an hourly rate for each temp they supply, and hours worked. WalMart can get away with paying them less because, by federal labor law, the agency is supposed to make up the difference.
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HUFFPOST SUPER USER
woody7
Always a Dem, but..............
11:16 AM on 03/06/2012
what is wrong with a "slam" piece. If they know that the people who (m) they do business are skirting the law or even nudging it, that is wrong. How else does Wally World get to be so competitive?
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HUFFPOST SUPER USER
James F Barry
Interior Designer * Very Gay
11:27 AM on 03/06/2012
Sorry, no thats not true. The courts have made it clear that you can't hid behind that smoke screen called Sub Contractor".....WalMart contuines to be uglyl place and as we all know "God don't like ugly".......Let the lawsuits fly.....
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HUFFPOST SUPER USER
Middle Class Majority
Watching America's Decline
09:59 AM on 03/06/2012
Why all the scrutiny of Wal Mart when:

General Electric is planning to move its 115-year-old X-ray division
from Waukesha, Wis., to Beijing. In addition to moving headquarters, the company will invest $2 billion in China and train more than 65 engineers and create six research centers. This is the same GE that made $14-billion in the United States last yea, but paid no taxes-the same company that employs more people overseas than in the United States.
So let’s get this straight. President Obama appointed GE CEO Chairman Jeff Immelt to head his commission on job creation (Job Czar). He is supposed to help create jobs. I guess the President forgot to tell him in which country he was supposed to be creating those jobs.
Soon, you all will understand that Obama has an agenda, this agenda is to remove the last super power from the world.
Please pass this information to others and think about it before you buy a GE product.
HUFFPOST SUPER USER
theRealAmerica
bruised,battered and scarred...but hard
11:53 AM on 03/06/2012
You copied and pasted a forwarded email...good job...thing is that Immelt is a Republican...I know you didn't know that...

And at this point the company has no intention of getting rid of the 120 employees in Wisconsin...

Also the sales of this product are going down in the US and up in China by 32% and up by 91% in India...