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Wal-Mart bias case to go to trial | Wal-Mart bias case to go to trial |
(about 1 hour later) | |
Wal-Mart will face a lawsuit claiming pay discrimination against more than a million female US employees after a court approved the action. | Wal-Mart will face a lawsuit claiming pay discrimination against more than a million female US employees after a court approved the action. |
A federal appeals court upheld a 2004 ruling giving the lawsuit class action status, sanctioning claims from up to 1.5 million current and former staff. | |
Should it lose the case, the world's largest retailer could have to pay damages worth billions of dollars. | Should it lose the case, the world's largest retailer could have to pay damages worth billions of dollars. |
Wal-Mart has said it did not have a policy discriminating against women. | Wal-Mart has said it did not have a policy discriminating against women. |
'Evidence' | |
The original lawsuit was filed in 2001 by six women who either worked for Wal-Mart or had done so in the past. | |
A lawyer representing the women said they had "been waiting years for this decision". | |
In a split two-to-one verdict, the San Francisco court ruled that the country's largest class action lawsuit against a private employer could proceed. | |
Factual evidence, statistical evidence and anecdotal evidence present significant proof of a corporate policy of discrimination Judge Martin Jenkins | Factual evidence, statistical evidence and anecdotal evidence present significant proof of a corporate policy of discrimination Judge Martin Jenkins |
Judge Martin Jenkins said sufficient evidence existed of discriminatory practices dating back to 1998 to support the case going to trial. | Judge Martin Jenkins said sufficient evidence existed of discriminatory practices dating back to 1998 to support the case going to trial. |
"Factual evidence, statistical evidence and anecdotal evidence present significant proof of a corporate policy of discrimination and support plaintiff's contention that female employees nationwide were subjected to a common pattern and practice of discrimination," he said. | "Factual evidence, statistical evidence and anecdotal evidence present significant proof of a corporate policy of discrimination and support plaintiff's contention that female employees nationwide were subjected to a common pattern and practice of discrimination," he said. |
But in his dissenting opinion, Judge Andrew Kleinfeld said the only evidence of discrimination provided was the fact that the number of female managers at Wal-Mart stores was disproportionately lower than the total number of female staff. | |
"This case poses a considerable risk of enriching undeserving class members and counsel, but depriving thousands of women actually injured by sex discrimination of their just due," he argued. | |
Wal-Mart employs 1.3 million US workers, about 65% of them female | |
Wal-Mart, which has yet to comment on the ruling, could appeal to the US Supreme Court. | |
The case, first heard in 2003, is unlikely to come to trial for some time. | |
The lawsuit only applies to women employed by Wal-Mart since 26 December 1998. | |
At any future trial, the plaintiffs will need to establish that Wal-Mart had a company-wide policy of paying female staff less than men and that workers had no right to argue their individual cases. | |
'Confident' | |
Lawyer Brad Seligman, who is representing the women who brought the case, said the merits of the case had now been recognised twice. | |
"We fully expect Wal-Mart to keep appealing but we are very confident now that two courts have upheld this certification," he said. | |
Wal-Mart has argued that granting the lawsuit class action status is inappropriate because its 3,400 stores operate as individual businesses and that issues of pay and promotion are decided locally. | |
It said workers who believed they were victims of discrimination could sue individual stores. | It said workers who believed they were victims of discrimination could sue individual stores. |
Criticised in the past for poor employment practices, something which it has always denied, Wal-Mart has launched a host of diversity and environmental initiatives in recent years. | |
But last year the retailer was ordered to pay at least $78m in compensation to workers after a court found it had broken the law by not paying staff for working during breaks. |