Dukes v. Wal-Mart

Dukes v. Wal-Mart Stores, Inc. is a legal battle concerning whether or not the company engaged willfully in gender-based discrimination. Underlying causes, organizational culture and ethical issues will be examined in determining how the largest private employer in the United States could have fallen prey to unfair labor practices.

“In 1999, women constituted 72% of Wal-Mart’s hourly employees, but only 33% of its managerial employees” (Bhatnagar, 2004). This fact and many others are the reasons many people allege that Wal-Mart has unfair labor practices. The Dukes v. Wal-Mart case challenged the hiring, promotion and pay practices of Wal-Mart. The case was filed in June 2001. When the case reached class certification status it became the largest class action civil rights suit against employment discrimination in American history. The case represented approximately 1.6 million women that had worked for Wal-Mart from 1998 to 2001 who felt that they had been discriminated against because of their gender.

Many women involved in the Dukes case alleged that Wal-Mart’s policies vary from gender to gender. The managerial staff is comprised mostly of men. The relocation policy in place has a distinct impact on female employees. To become a manager, one must relocate multiple times at each management level. Female employees claimed that this could potentially have a disparate impact on single and married mothers, therefore the policy is not fair to all; favoring the chances of a male getting a promotion over a female.

According to the Berkeley Women’s Law Journal (2004), Wal-Mart pays its employees about one-third less than what similarly unionized employees earn. Wal-Mart’s slogan is “Everyday low prices,” and they accomplish this by keeping wages low and by suppressing any efforts made by unions to unionize Wal-Mart. In addition to paying low wages, some Wal-Mart stores allegedly violate the Federal Fair Labor Standards Act. The Federal Fair Labor Standards Act regulates overtime pay and child labor standards. Many employees have claimed that Wal-Mart makes them work more than 40 hours per week without overtime pay. When management realized how much overtime pay they were logging, they would call in managers to adjust the time sheets. An internal audit exposed the violations of the Federal Fair Labor Standards Act.

Many o...

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The company should employ the stakeholder theory as opposed to the agency theory. Each member associated with Wal-Mart will be treated fairly and honestly. In incorporating the deontology perspective as opposed to the Utilitarian viewpoint, the company will show its desire to right previous wrongs.

Wal-Mart has to implement a number of changes to correct the problems it has created. Attention must be paid to ensure the employee is treated fairly. Other ways must be sought to maintain profit levels and make the stockholders happy.

References

Bhatnagar, Ritu. (2005). Dukes v. Wal-Mart as a Catalyst for Social Activism. Retrieved July 12, 2005, from the University of Phoenix Library EBSCOhost database

Dukes v. Wal-Mart, Inc. (2004). Class Certification Status Decision, United States District Court, Northern California. Retrieved July 15, 2005 from http://www.walmartclass.com/public-home.html.

Featherstone, Liza. (2004). Rollback Wages! Retrieved July 12, 2005, from the University of Phoenix Library EBSCOhost database.

Sellers, Jeff M. (2005). Deliver us from Wal-Mart? Retrieved July 12, 2005, from the University of Phoenix Library EBSCOhost database.