WAL-MART EMPLOYMENT PRACTICES

WAL-MART EMPLOYMENT PRACTICES

Executive Summary:

In the case against Wal-Mart by Bernett, the court approves the settlement of money up to $35million to the workers at Walmart whose rights had been denied. This case saw a toll on the company and led to uncovering of various corporate malpractices conducted by the organization against their workers. Wal-Mart was also mandated by the court to ensure that issues regarding wage and hour violations in the company were handled. Other lawsuits filed against the company in its nationwide stores were meant to reimburse its 1.4 million workers nationwide (Mcfadden, 2020). These lawsuits had a significant impact on the company’s revenues. This position paper resolves to recommend courses of action that can be undertaken by the company’s top management to ensure that similar cases do not recur as well as steps they should have committed to preventing them.

Introduction

Unethical practices that have been reported over the years concerning Wal-Mart’s practices have tainted its reputation as a leading retail store. Unethical labour practices have in the stores which are against the Employee’s rights. Issues concerning the wage rates offered by the retail store indicate that they are lowest in the retail industry and cannot sustain Employee’s welfare. The company charged at least $10.84 per hour, which was less than the recommendable rates by 26%-37% when compared to the national wage rate. This necessitated most of the company’s employees to rely on state welfare support schemes for sustainability (Mcfadden, 2020). Wal-Mart aimed to increase its revenue by reducing operational costs; hence they lowered their labour rates. The store also analyses their managers’ performances by their ability to lower prices which include functional words. Employees paid slightly higher wages are mostly expected to perform even better. The company defends its pay rate by claiming that they heavily invest in training their employees as well as automating their services and products. Gender discrimination is also one of the issues that are common in the company. The male workers are paid significantly higher as opposed to their female counterparts for similar tasks..

Suggestions on what Wal-Mart’s top management should have done

Following the onset of numerous cases filed by the company’s employees as well as past employees, the company should have opted to resolve the cases amicably out of court with its affected members. The litigation process meant that the company spent more than it would have had it had on trying to resolve the numerous disputes. Wal-Mart should have also avoided some instances by merely adhering to employment rules as well as making sure the work environment for its employees was conducive and convenient for their productivity. For example, during a lawsuit in California, employees sued the company for failing to provide suitable seats for cashiers after they had frequently requested them (Farfan, 2019). The company argued that by providing seats for its employees, it would encourage laziness and less productivity hence lead to poor performance. However, this was against the law and disabilities act; therefore, the company was merely ignorant of the regulations. Purchasing seats for its employees would have costed less than the $65 million fine the company paid to nearly 100000 cashiers who worked for it. The top management should have just had adhered to the rules and regulations which would have saved its revenues instead of paying fines.

The gender discrimination charges filed against the company tainted its image as a discriminatory employee, especially against female workers. Issues surrounding biasness when it came to promotions and pay rises were common in its numerous stores. The company should have handled such discriminatory problems by coming up with suitable strategies that describe how rewards and promotions are earned. This would ensure that the workplace was not biased against gender and that recognition in the workplace was earned through performance (Lieber, 2019). It was also clear that the issue of management training programs was not available for female workers; this would have been addressed by creating equality as well as ensuring that all company programs contain all employees. The pay gap issue could have been resolved by equally reimbursing all employees who perform similar duties. The top management should have recorded all payments they make to their employees and come up with related charges for all workers. The issue of low pay rates can be addressed by adhering to the state laws on the recommended pay rates for all workers. This would ensure that the company conforms to the regulations and in the advent of a lawsuit against pay rates, their defence would be logical.

Suggestions on what Wal-Mart’s top management should do

The company should practice gender quality amongst its employees. Training programs conducted in its stores should be directed towards ensuring that all its employees benefit and can advance career-wise. The company’s management needs to incorporate proper business ethics which promote good working practices with its employees and the community at large. Having a code of conduct will regulate issues surrounding work environments, Employee’s welfare and gender issues. Over time, the company has faced lawsuits over failure to make the work environment suitable for workers. The company can engage workers in understanding the challenges they face. Provision of basic amenities such as seats for cashiers would be very humane and enhance even better productivity.

Walmart should encourage diversity and inclusivity in its stores, especially amongst employees. This will promote and increase teamwork amongst them. Due to numerous lawsuits that the company has undergone in the past, its management should consider coming up with a dispute resolution committee for the company to settle its internal issues. This would aid in settling of issues amicably without needing litigation procedures which affect the company’s brand image to outsiders (Irwin, 2016). Fair and just treatment for all its workers would really boost their morale and motivate them to work even better. By increasing the workers’ pay, the company could create a friendly environment which would encourage their workers to operate fully. Since its workers contribute greatly to Walmart’s growth of revenue, reimbursing them and rewarding their efforts through numerous incentives which would boost its overall performance.

Conclusions

The retail industry is immensely growing with the upcoming of numerous stores globally. This has an effect on the existing business, which is required to incorporate both technology and market changes for them to tackle the competition. With the advent of online shopping and the creation of shopping malls, stores such as Walmart are challenged to build a good rapport with their employees to avoid wasting resources on revenues. Brand image is the selling point of most companies hence the need to create a positive and respected one to increase competitive advantage.

References

Farfan, B. (2019, 12, 12). Walmart Class Action Employee Lawsuits. Retrieved from the balance smb: https://www.thebalancesmb.com/walmart-class-action-employee-lawsuits

Irwin, N. (2016, October 26). Walmart’s lesson: Treat employees well, and the company does well. Retrieved from The record: https://www.therecord.com/news-story/6932197-walmart-s-lesson-treat-employees-well-and-the-company-does-well/

Lieber, C. (2019, 2, 15). Walmart just got hit with a major gender discrimination lawsuit. Retrieved from Vox: https://www-vox-com.cdn.amproject.org/v/s/www.vox.cm/platform/amp/the-goods/2019/2/15/18223752/walmart-gender-discrimination-class-action-lawsuit-2019?amp

Mcfadden, S. (2020, 2, 10). Employment practices at Walmart report. Retrieved from Ivy Panda: https://ivypanda.com/essays/employment-practices-at-wal-mart/