Yesterday, a federal judge in Little Rock, Arkansas granted class-action status to truck drivers accusing Wal-Mart Stores Inc. (NYSE: WMT) of using racially discriminatory practices in hiring drivers, according to the Arkansas Democrat-Gazette.
The suit will include all black applicants in the U.S. who were denied driving jobs since September 22, 2001, and those who say they were denied or prevented from applying for a driving job as a result of Wal-Mart's policies.
U.S. District Judge William R. Wilson Jr. said that Wal-Mart drivers were screened by a committee of drivers. The judge noted that none of the screening committees had a majority of African Americans while some committees lacked any, despite a company rule that the panels be 50% diverse.
The class-action suit is expected to include less than 10,000 people. Plaintiffs looking for punitive damages would need to separately file a suit after the class-action case, according to the ruling.
It seems that discrimination continues to affect the working man. This case reminds me of the recent FedEx Corp. (NYSE: FDX) racial discrimination settlement (as well as the one in 2005). The suit alleged that FedEx Express discriminated against African American and Hispanic workers by paying them less than Caucasian workers, passing them over for promotion and treating them unfairly in evaluation and disciplinary proceedings.
While FedEx had denied committing any acts of racial discrimination, there was a $53.5 million payout to make the case go away. On the day of the settlement, FedEx shares were barely hurt, down 57 cents that morning. I expect Wal-Mart to look for a settlement and its shares to experience the same treatment as FedEx's on the news.
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Reader Comments (Page 2 of 2)
5-21-2007 @ 12:41PM
Becky said...
In response to some of the comments posted about this, it is far different to be singled out and discriminated against because of your ethnicity, than to be presumed not athletic enough for a sports team or to attack a group of people for wanting better lives for their families. I think it's everyone's responsibility to ourselves and the communities we live in to do our parts to ensure that people are treated fairly and justly. Pointing fingers and making generalizations only worsens the situation.
5-21-2007 @ 1:23PM
sick of it all said...
I have never been so sick of American than I am right now. We should be proud of our country, but the country is really going down the tube and FAST. We shouldn't see any difference between each other but we do because they are too lazy to conform to America. If you want to be in America, then learn ENGLISH first. Then conform to our forefathers ways. If not go back to YOUR country of origin and live there. Don't try and change our ways to the ways you lived because they must not have been very good to start with if you like it here better. I'm talking about the Hispanics. Why in an English speaking country should we reform to your laungage? Learn English or GO HOME!
I've never seen so many lazy people in my life. Driving a truck to hard work. Long and boring days and nights. Always having to be alert for some idiot on the road. There are just tons of people out there looking for the easy way out. So let's sue someone for the money so they don't have to work. Don't they realize the only ones to get ahead with this way is the LAWYERS. To get ahead on your own merit is to dress right, speak so you can be understood, have some decent manners and stop whining about every little thing. If everybody would stop bitching about everything to get attention it would be a much happier place to live.
5-21-2007 @ 2:02PM
Lisa said...
It is sad when the race card is played and very unfortunate when it is played without merrit. As for James, in regards to whites playing professional sports, why should whites worry about playing the game when they all have key positions as owners? Whites can play sports if they choose, but I think they all prefer to rake in the dollars off of the sweat of the players. How many BLACK team OWNERS are there? How many are raking in the money from an all white team?
5-21-2007 @ 5:50PM
brenda said...
I just read about 20 comments and I can say that racism is alive and well but I truely think that all races have been racially discriminated against at one time or another. I think that there is some facts supporting this charge if it is not the judge should not be listening to hear say he/she should have pure facts and proof that this has happened. I do not think this is a race card issue if you have facts and proof if you don't all of that other crap is hogwash and it is a waste of taxpayer dollars.
5-22-2007 @ 12:10AM
Yvonne said...
Wal-Mart does discriminate against African-Americans or I should say minorities. Not only truck drivers, but also in management. Yes, there are lots of minorites in lower paying jobs. What about African-Americans and minorities who were support managers, and are college educated, and are applying for assistant management positions; yet somehow their applications never reach personnel. The applications are conveniently disappearing, or should I say they get lost. What about minorities whose peformance ratings are commendable, yet their score ranking which is supposingly based on their performance is very low. Low scores make it impossible to apply for promotions.
5-22-2007 @ 10:40AM
yves jean louis said...
as a black man i`m telling you this ,it`s not wal-mart it`s just some caucasian managers do these practices all the time .sometime a good system might be spoiled by just one racist element .i will never blame wal-mart for this because i use to work for publix and i know that publix it`s one of the best places to work but some managers are just racist or sexist.but i look at them in the eyes and tell them exactly what i think about them and they could never take punitive action against me because i was right .when you are a victim of racism or sexism don`t go to lawyer report it to coorporate, for those who are saying "i`m an educated black person and i can`t get to management because of my melanine" let me tell you there bunch of college graduates caucasians who can`t reach management neither.you know why? simply because you need to be a role model ,intelligent,clean,a people person,ability to communicate,ability to solve problems,work on your smile,be ponctual,make customers come again, show you`re interested to make through management.i`m absolutely sure from what i knew from publix you can reach management with or without a ged regardless of your ethnicity or gender. so when you are a vile or a non productive college graduate don`t put it on your race .you just have to know the fact that you college only give you more opportunity in the employment if and only if you have what it takes to grow in this employment world.but i know racism is a big issue in this country but like i said the system is good ,when you are a victim if you are not lazy and greedy, sue the offender not the company or the system.
5-22-2007 @ 10:41AM
adoubledose said...
not saying anything is right mr.james but,your comments lack very much-history is-you had your own white professional teams, for how long? mayb we should take over the white house and call it the black house to be as ignorant as you sir! maybe we need to bring back slavery days and let white americans fight for there freedom for 400 years and go thru the advercities that black americans have gone through.this is america and its suppose to be the land of the free,we have systemmatic laws in place,so let them be