Wal-Mart Fined for Child Labor Violations

February 15 2005 - The U.S. Department of Labor has fined Wal-Mart $135,540 in civil money penalties for violating the youth employment provisions of the Fair Labor Standards Act (FLSA) for allowing teenage workers to operate hazardous equipment.

Wal-Mart is the largest retailer in the world. It has approximately 3,000 stores and is headquartered in Bentonville, Ark.

The Department of Labor conducted an investigation of 25 of the company's stores from October 1998 through April 2002. 21 stores were in Connecticut, three were in Arkansas, and one was in New Hampshire. The investigations showed that Wal-Mart employed 85 minors aged 16 and 17 who were performing prohibited activities, including loading and occasionally operating or unloading scrap paper balers, and operating fork lifts.

The FLSA prohibits the employment of minors under age 18 in any occupation deemed to be hazardous by the Department of Labor. The Department of Labor has issued 17 specific hazardous occupation orders identifying prohibited occupations.

"A young person's early work experience should be positive and educational and should never jeopardize their health and well- being," said Victoria A. Lipnic, assistant secretary for the department's Employment Standards Administration. "Wal-Mart settled this matter with the department and committed to take specific measures to ensure that all its stores are in compliance with youth employment laws in the future."

Wal-Mart has agreed to the following actions as part of the compliance agreement:

* Designate a corporate official to supervise compliance with the agreement;

* Provide new and current store managers with training on child labor law compliance;

* Include child labor compliance reviews in its regular internal audits, and

* Post warning signs, supplied by the Labor Department, on all company-owned hazardous equipment indicating the age restriction on their use.

Additionally, Wal-Mart has agreed that it will implement these practices in all of Wal-Mart Stores and Supercenters.

The United Food and Commercial Workers International Union issued the following statement:

'The nation's largest employer, and one the nation's largest corporate political donors, was cited for using children in dangerous jobs in its U.S. stores; and, then got a sweetheart deal that gives the company fifteen days advance notice before the government will initiate any investigation of future violations of federal workplace laws.

'According to allegations contained in a settlement agreement with the U.S. Department of Labor, Wal-Mart was engaged in the unconscionable practice of using children to operate hazardous machinery in stores in New Hampshire, Arkansas and Connecticut. The machinery referenced in the case- balers, shredders and compactors- are standard equipment in retail stores, and are commonly associated with injuries involving the crushing or severing of arms and hands. Safety regulations on the books for decades have prohibited employers from using children to operate the machines. A company the size of Wal-Mart with a long history of operating retail stores should have been well aware of the law as well as the dangers to children in operating the restricted machinery.

While the corporate giant with billions of dollars in revenue agreed to pay a $135,000 fine, its representatives got a sweetheart deal that could insulate the company from getting caught in future violations. Wal-Mart gets fifteen days written notice of any government investigation or audit. Wal-Mart can work a child on a compacting machine or baler without fear of any unannounced enforcement action, and simply reassign the child worker during the time of the prearranged inspection. Further, the agreement allows the company ten days to correct the violation. A literal reading of the agreement would allow Wal- Mart to continue to put children at risk for over a week even if the government uncovered the violation.

Wal-Mart was the biggest political giver in the 2004 election, with the overwhelming majority of its money going to the party controlling the White House, Congress- and, the Department of Labor.

The UFCW is preparing a letter to the Secretary of Labor, and will seek Congressional review of the agreement.

See also: Wal-Mart Hits Back

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