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Nan Aron

Nan Aron

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Wal-Mart v. Dukes: The Supreme Court's Big Case Threatens the Ability to Fight Corporate Misbehavior

Posted: 03/28/11 03:05 PM ET

What's it like to be a female employee of Wal-Mart, the world's biggest retailer?

According to Betty Dukes, it's frustrating, as well as economically and psychologically debilitating. Ms. Dukes was an enthusiastic Wal-Mart employee, eager to work her way up from store "greeter" to a position in management. But after years passed watching male colleagues move up and finding no opportunities for her own advancement, she discussed her concerns with a district manager. The result was a pattern of retaliation that eventually led to a demotion and pay cut -- and the biggest sex discrimination case in history.

It turns out Ms. Dukes wasn't alone. When a woman with a master's degree who had worked at Wal-Mart for five years asked her department manager why she was paid less than a 17-year-old boy who had just been hired, she was informed, "You just don't have the right equipment... You aren't male, so you can't expect to be paid the same." Another female employee was informed that a male employee got a bigger raise then she did because he had "a family to support." Another was told that men would always be paid more than women at Wal-Mart because "God made Adam first, so women would always be second to men."

These are galling stories, of course, but were they isolated incidents of individual sexism, or did they represent a pattern of long-standing, systemic behavior across the entire company?

The answer to that question is at the heart of Wal-Mart v. Dukes, the biggest case of the current term of the United States Supreme Court, and which will be argued tomorrow.

In every category of salaried management at the company, women are significantly underrepresented and are paid consistently less. To move up in Wal-Mart, employees need a "tap on the shoulder" from upper-level management, which is overwhelmingly male and stubbornly protective of a corporate culture that demeans women.

Wal-Mart insists the company is so large and decision-making by individual managers is so decentralized that it can't be held accountable. But in a corporation where an environment hostile to women is willfully perpetuated in everything from discouraging women from applying for positions in departments like sporting goods or hardware to holding meetings at strip clubs, the fact that store managers have discretion just means that their boy's-club biases, which are consistently rewarded and reinforced, have free rein.

In fact, Wal-Mart had a far lower percentage of female managers in 2001, when the suit was filed, than their closest competitors had in 1975.

But what makes this case so important for all Americans is not just the injustice done to hundreds of thousands of workers, it's the desire by Wal-Mart and the corporate powers supporting their case, including the Chamber of Commerce, to restrict the ability of the women harmed by these policies to band together as a class and fight a unified battle in court. If Wal-Mart succeeds, not only will women at Wal-Mart be unable to change pay and promotion disparities, but future lawsuits related to employment discrimination, civil rights, antitrust violations, and consumer protection will be significantly hampered, discouraging cases brought by large groups of people against broad-based corporate malfeasance.

Class actions, especially those that involve large number of employees seeing back pay, are a crucial tool for holding corporations accountable for widespread bias (or misbehavior of any kind), especially when the harm done to one person, like Betty Dukes, is small relative to the bigger picture of discrimination. Corporations want each individual to fight it out on his or her own, case by case, David vs. Goliath style. That way, broad patterns of corporate wrongdoing would remain invisible because legal discovery would be limited, and company-wide statistical evidence may be inadmissible. Even if the corporation ultimately lost dozens of individual cases, remedies would be fundamentally inconsequential. Plus, as the Supreme Court has previously recognized, lawyers will be deterred from taking such legal actions because the potential rewards are tiny and the costs of litigating against massive corporations are huge. Because of these factors, class actions are essential tools for everyday Americans seeking justice.

Ms. Dukes has argued that because every woman who has worked at Wal-Mart has been disadvantaged by a company-wide pattern of behavior, they all are entitled to force Wal-Mart to change its policies and award back pay to those who have faced discrimination. For class actions to work as mechanisms for delivering justice and deterring corporate misbehavior, the defendant must be compelled to face the financial consequences inherent in compensating the actual number of people who have been harmed, no matter how many. If the Supreme Court rules that classes like this are improper, though, the entire class action concept will be severely weakened. Given the inclination of this Court to favor big business interests, many are deeply concerned that once again the legal system will be reconfigured to favor the powerful.


A complete summary of the issues at stake in the case is available in Alliance for Justice's report, Wal-Mart v. Dukes: Will the Supreme Court Protect Wal-Mart's Discrimination Against Women?

 
 
 

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HUFFPOST SUPER USER
sGennawey
01:15 PM on 03/29/2011
What are these people thinking? In America, corporations certainly have more rights then women.
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BassguyGG
Former Moderate driven Left by eight years of Bush
10:10 AM on 03/29/2011
As it is currently constituted, this has little chance of being decided favorably for the workers.
09:57 AM on 03/29/2011
"God made Adam first, so......."

....then God tried again AND the second time, called her WOMAN because he FINALLY GOT IT RIGHT!
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HUFFPOST SUPER USER
James Hannen
Nothing to fear...
08:35 AM on 03/29/2011
Undoing decades of progress for women, the activist justices of the SC will likely side with WalMart. Funny I thought the Repubs hated activist judges. I know, except when it benefits them. It will be a travesty, setting back human rights in the US. Can't wait to read the decision and try to make sense of the twisted legal reasoning.
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08:27 AM on 03/29/2011
..." men would always be paid more than women at Wal-Mart because "God made Adam first, so women would always be second to men."

This is what is so wrong with teaching "creationism" in public schools,
Why do so many have such a hard time understanding this simple but profound concept?
The decision will be 5-4
Dave/
HUFFPOST SUPER USER
separatingwheatfromchaff
06:41 AM on 03/29/2011
As a 61 year old I know discrimination still exists,but I fully expected it would never extend to the Supreme Court again.These past 10 years with the right wing Supreme Court majority in the drivers seat we are witnessing the demise of the United States into a fascist state at an exponentially alarming rate.When George Bush was appointed President by the Supreme Court,that was our first real indication of a political power schism within the country.It was also the first indication that it was time to revisit how our Supreme Court justices are picked.We as Americans have a right to a Supreme court that reflects the wishes of the American public,not some cronies of a lobbyist think tank or a well heeled politician,or a corporate sponsor.
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HUFFPOST SUPER USER
astuartgirl
Um, no, not really.
08:27 AM on 03/29/2011
I agree they should be elected. But as with appointments. If they serve a lifetime term, elections during certain political climates will do the same as appointments.
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HUFFPOST SUPER USER
GunnyJ
I do my best every time.
06:25 AM on 03/29/2011
If Wal-Mart wins this and there is good chance they will because justice is not blind at this SCOTUS, women become less meaningful again in the corporate-republican world. I hope women wake up and discover they are in a battle for respect and equality as are others. The right fringe has broadened the field of battle and winning many small fights. We cannot allow this to continue.
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05:44 AM on 03/29/2011
Do Americans still believe there is independent justice available at the Supreme Court?
HUFFPOST SUPER USER
sGennawey
01:16 PM on 03/29/2011
If you have enough money and connections, yes.
HUFFPOST SUPER USER
Whitemellon
04:52 AM on 03/29/2011
I watched a documentary about Walmart that claimed if any store employee let headquarters know someone was talking about forming a union there would be a corporate jet arriving within hours to look into the matter. I guess it doesn't work that way when it comes to the discrimination of their female employees.
12:35 PM on 03/29/2011
Indeed, that's true. The modern-day goon squad, and they can be very intimidating. I know some people who work there. The standard tactic is to turn worker against worker by scaring them with job loss but stopping just short of uttering the exact words. Problem is the laws governing union organizing are weak and what laws there are are poorly enforced.
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HUFFPOST SUPER USER
Jean Clelland-Morin
religion / the Golden Rule
04:39 AM on 03/29/2011
P.S. When I was a single mom, both my Mormon parents voted against the Equal Rights Amendment. // Jean Clelland-Morin
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08:29 AM on 03/29/2011
Jean,
"Beckism" at its' very best.
Dave/
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HUFFPOST SUPER USER
Jean Clelland-Morin
religion / the Golden Rule
04:36 AM on 03/29/2011
Thanks, Nan Eron. As a 73 y.o. university graduate, I understand. // Jean Clelland-Morin
03:24 AM on 03/29/2011
Our government favoring big business... no f(*&ing way
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kemstone
Just another opinionated nobody.
03:00 AM on 03/29/2011
I agree with most of the commenters. If the Supreme Court rules against Wal-Mart it will be the shock of the century.
02:32 AM on 03/29/2011
WalMart will easily win tomorrow, given that this Supreme Court has been bought and paid for by the corporations, you know, those "real" people...................
02:29 AM on 03/29/2011
Citizens United already sets the precedent that corporations make the laws.
barrada nicto
Optimism is necessary.
04:03 AM on 03/29/2011
Our system of government is hugely flawed.