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Claudia Ricci

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How One Woman Won a $2 million Gender Discrimination Settlement Vs. Wal-Mart

Posted: 06/21/11 11:20 AM ET

If you believe Justice Scalia, who wrote for the Supreme Court's majority opinion in yesterday's Wal-Mart ruling, there is "no convincing proof of a companywide discriminatory pay and promotion policy."

Tell that to all the women who have worked for Wal-Mart. The company has gotten away with its discriminatory culture by playing it both ways: it has a policy on the books barring discrimination but it leaves individual store managers operating in a culture where discrimination is widely accepted.

One case in a small town near me stands out -- and I learned of it first from my own mother, who knows the family involved.

Pharmacist Cynthia Haddad, of Pittsfield, Massachusetts in 2007, won a $2 million lawsuit against Wal-Mart, where she had worked for 10 years. In that case, Massachusetts lawyer and employment practices expert Julie Moore testified on behalf of Haddad, suggesting that Wal-Mart's policies and practices "contributed to the gender discrimination that culminated in this pharmacy manager's termination."

The retailer fired Haddad claiming that a fraudulent prescription had been filled when she left the pharmacy unattended.

Haddad was able to show that Wal-Mart had axed her because she had demanded that they pay her the same manager's salary that her male colleagues earned. Oh, and about that fraudulent prescription? It was filed a year and a half before Haddad was fired -- she'd never even been told about her so-called mistake.

In 2009, Massachusetts' Supreme Judicial Court upheld the verdict in this precedent-setting case.

The idea that an individual woman could sue the wildly powerful Wal-Mart and WIN $2 million is one heck of an inspiring story in a small Massachusetts town. Haddad, the mother of four children, told Business Week magazine that the lawsuit was no picnic. Still, Haddad had a lot going for her. She was a relatively well-paid professional and her husband, Bill, is also a pharmacist. She had the education, intellectual wherewithal, financial independence -- and the guts -- to complain in the first place, and then to mount a lawsuit after she was unjustly fired.

But that's not the situation for so many other low-income cashiers and hourly employees who aren't in such privileged positions. So many women don't have the luxury to dare risk losing their jobs by filing a complaint. Those are the women who have been screwed by the five men in the court's majority.

Well, so, when we have this conservative Supreme Court handing down rulings like this, we need more inspiring stories. But it's hard these days to find stories. Or hope.

 

Follow Claudia Ricci on Twitter: www.twitter.com/RicciCJ

 
 
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05:14 PM on 06/22/2011
What goes unremarked upon, on both sides of the case, is that about 72 percent of Walmart's hourly sales jobs have all along been held by women — which is discrimination FOR women, or, worded differently, discrimination against men.

Suppose 72 percent of the company's hourly sales employees were men and most of the managers were women. Since women's advocates now ignore Walmart's current, real hiring discrimination against men, doesn't this mean the advocates would ignore women's dominance in Walmart's management and claim that a 72-percent male sales staff proves hiring discrimination against women? Wouldn't this hiring discrimination in fact now be the basis for the class-action lawsuit against Walmart?

For a primary reason Walmart has more male managers than female, see:

"Taking Apart the Sex-Bias Class-Action Lawsuit Against Wal-Mart" at http://tinyurl.com/lnn3xn or at http://malemattersusa.com/2011/06/21/taking-apart-the-walmart-sex-bias-class-action-lawsuit/
10:20 AM on 06/22/2011
It's no wonder employers are off-shoring jobs in record numbers. Stay here and get sued by some affirmative action group, whether women, blacks, hispanics, gays etc - who will bankrupt your business and leave you broke over whatever they can find or imagine to feel "victimized" over.
07:23 AM on 06/22/2011
More DNC talking points. That is Connie. "Walmart = no union, so Walmart = no good, racist, evil, discriminating . . ." If there was discrimination, they can sue individually, but the million person class action suit was a media event, not justice. http://bit.ly/jerMtF
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The Lone Stranger
Yes, I am a lousy typist. OK!
01:09 AM on 06/22/2011
In fairness to Wallmart, an operation of their immense size is bound to have occasional mistakes.

The problem with a class action lawsuit is that this runs the risk of taking a problem that impacts only 1 out of every 1000 employees and penalizing them as if this applies to all.

what if half of the class action participants are lying? does this mean that half the problem is gone? Or maybe its entirely gone?
01:04 AM on 06/22/2011
The real problem in these cases is the fundamental structure of individual rights in America. The laws appear on the books but plaintiffs are left to find contingent fee lawyers who are all too well aware that only outstanding cases will justify the time and costs of full blown litigation. The truth is that on average if all rights of all legitimate plaintiffs were adequately litigated the return would be less than zero. It's a lottery.

So where does that leave individual rights in America? It's largely a simulation. We have the appearance of fairness without its substance.

All plaintiffs' rights should be adequately supported by government funded litigation services such that rights are advanced with the government bearing the negative returns. Justice will have been done only when those negative returns reach the zero point or possibly extend above zero. So ultimately in a system with substantive individual rights that are truly meaningful litigation would eventually become truly self funding.

Class action suits are unnecessary. They only serve to gain the support of a handful of lawyers who support the status quo in exchange for the occasional bonanza.

The law in its current state is a matrix.
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The Lone Stranger
Yes, I am a lousy typist. OK!
01:03 AM on 06/22/2011
Hey Look on the bright side. Instead of a bunch of women having to each share a single award, this could in the ned result in lots of women sharing in humungous awards.
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10:30 PM on 06/21/2011
When I found myself working for individuals or companies that so violated my sense of self, my personal values to the degree Wal-Mart is being accused of, I quit.
There are consequenses for all our actions.
Imagine the message it would send to Wal-Mart execs--let alone the rest of the world--if the tens of thousands of women who allege such wrongdoing all walked out this week.
I say, stop whining and do something constructive. No person should choose to stay in any abusive relationship.
Ever.
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The Lone Stranger
Yes, I am a lousy typist. OK!
01:04 AM on 06/22/2011
yeah but where are all thse folks going to find new jobs? it won't be in local competitors to Walmart.
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french queen13
my beloved is mine and I am his
07:04 AM on 06/22/2011
Why is it that whenever people in try to get redress for discrimination, or just to see, say, health and safety laws actually obeyed in their workplaces, they're so often told to "stop whining" or find another job? That essentially says that employers have no obligations to workers at all, or to the law for that matter. And telling people who are in low-paid jobs (and hence unlikely to have savings) and probably have families to support - who may in these times be the sole breadwinner of a family - to walk out, is not only unrealistic, it's verging on heartless. What other work are they supposed to find with unemployment at its current levels?
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Dh Barr
Bringing Clues to the Clueless
08:22 PM on 06/21/2011
So when all the commentators on HuffPo were screaming yesterday that women with individual cases of discrimination would never see justice if they had to take their individual cases to court, they were obviously wrong.
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french queen13
my beloved is mine and I am his
07:05 AM on 06/22/2011
Might I draw your attention to the important point at the end of the article:

"Still, Haddad had a lot going for her. She was a relatively well-paid professional and her husband, Bill, is also a pharmacist. She had the education, intellectual wherewithal, financial independence -- and the guts -- to complain in the first place, and then to mount a lawsuit after she was unjustly fired.

But that's not the situation for so many other low-income cashiers and hourly employees who aren't in such privileged positions. So many women don't have the luxury to dare risk losing their jobs by filing a complaint. Those are the women who have been screwed by the five men in the court's majority."

They might see justice if they get to court - it's their chances of getting that far individually that are minimal.
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07:13 PM on 06/21/2011
Walmart has such a poor track record with it's employees. I am not sure why anyone would work there, more or less shop there. I personally avoid the place like the plague. I don't care how cheap it is - somewhere someone is loosing out on that deal.
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french queen13
my beloved is mine and I am his
07:06 AM on 06/22/2011
Given the state of the US economy, I'd say "lack of alternatives" might be the answer to why people work there. Imagine being the sole breadwinner in a family - how much choice would one have?
07:03 PM on 06/21/2011
I had a neighbor who worked at Walmart as an hourly salesclerk.
She came home in tears because she was made to punch out but stay late and work off the clock to finish cleaning out a fitting room.
It took her 40 minutes, she was late getting her kids at the bus stop (another mom kept the kids until she got home from work).
She couldn't complain, because the fitting room needed to be cleaned, but she was so upset about the extra time and the punching out to work for free.
She still works there, but I haven't shopped there since.
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stryker
06:42 PM on 06/21/2011
The US Supreme Court: a wholly-owned subsidiary of corporate America. Anyone remember the last time the court ruled in favor of the working man or woman?
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Liberals Are Intolerant
fiscal conservative, social libertarian
06:39 PM on 06/21/2011
$2M was an excessive reward. That is more than she would have made in the rest of her career at Walmart.
07:01 PM on 06/21/2011
So Walmart wins either way.
They can't be fined a large settlement because the employee is poorly paid, or they keep paying the employee low wages.
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Liberals Are Intolerant
fiscal conservative, social libertarian
09:39 PM on 06/21/2011
Pharmacists get a competitive pay, she was paid fine. Even considering that, I still think the award was excessive.
01:47 PM on 06/21/2011
Leave it to the English and Journalism department to confound a sample size of N = 1 with company-wide gender discrimination. $1,000 says Ms. Ricci could not calculate an F-statistic to save her life (nor would she know the significance of such a test).
03:24 PM on 06/21/2011
Leave it to a conservative to not have read the case and see the evidence of a systemic pattern of discrimination

but hey...I understand...facts have a liberal bias
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mustlovecats2
trying to figure out how to emigrate if RandR win.
06:16 PM on 06/21/2011
Leave it to a mathmatic guru to have no social awareness whatsoever. I also think you're probably a man and have no standing in this situation.