Wal-Mart, a giant U.S. retail chain (and one which owns a leading supermarket called Asda in the U.K. as well) has been found guilty by a judge in California of not paying the legislated minimum wage for drivers in the state of California.
Wal-Mart operates out of Bentonville, Arkansas, U.S.; it has a colossal 11,000 stores in 28 countries, under a total 65 different trading names. The companies’ gross profit currently stands at $129.9 billion. This makes it the world’s biggest company by revenue.
The company also employs a lot of people, around 2.2 million employees at the last count. Huge profits does not necessarily lead to enlightened employment policies or a desire to observe requirements to pay a minimum wage in all cases (let alone a “living wage”[.)
Here a federal judge has decided that the multi-national company did not pay the California minimum wage to truck drivers for all aspects of work. While drivers were paid what they were due for driving, this did not extend to for inspecting and washing their trucks. If the decision is well-defended any appeal (and the company, with one eye on its share price is likely to dispute the ruling) could result in a $100 million bill for back pay. The minimum wage in California was, until June 11, $9 per hour. The wage has recently been increased to $15.
Commenting on the decision, Butch Wagner, who represented the drivers, said: “These guys are owed the money, so the sooner they get paid, the better.”
