DeLauro Questions Labor Secretary on Wal-Mart Settlement

Date: March 17, 2005
Location: Washington, DC
Issues: Labor Unions


DeLauro Questions Labor Secretary on Wal-Mart Settlement

-Majority of Child Labor Abuses Found in DeLauro's Home State of CT-

WASHINGTON, D.C. - Seeking answers to the controversial settlement the Department of Labor (DOL) reached with Wal-Mart in January, Congresswoman Rosa L. DeLauro (Conn.-3), today questioned Labor Secretary Elaine Chao during a subcommittee hearing of the Appropriations Committee. Wal-Mart, the country's largest retailer, paid a $135,540 fine to settle federal child labor violations in three states - Arkansas, Connecticut and New Hampshire. Twenty-four Wal-Mart stores were involved in the settlement, 20 in DeLauro's home state of Connecticut, including two stores in her district.

"When the safety of children is at stake, I fail to understand how the Department of Labor could believe a fine equivalent to what Wal-Mart generates every 15 seconds would have any impact whatsoever," said DeLauro. "Perhaps more importantly, the agreement grants the company 15 days advance notice before any DOL investigation can be initiated and an additional 10 days to remedy life-threatening child safety hazards. This settlement put the interests of one of the nation's labor laws violators ahead of the protection of children. I intend to learn why."

In March 2000, Wal-Mart paid a $205,650 fine for child labor violations in every one of the 20 Wal-Mart stores in Maine. That same year, the company conducted a weeklong internal investigation of 128 Wal-Mart Stores and found 1,371 instances of child labor violations. The results were revealed by The New York Times four years later. When questioned, Wal-Mart officials claimed the audit was faulty and had incorrectly found that some youths had worked on school days. Later investigations revealed those days were holidays.

"With such an egregious violation facing Wal-Mart, the Department of Labor should seek the most aggressive remedies possible," said DeLauro.

Last month, DeLauro wrote to the Labor Department with concern over a policy agreed to in the department's settlement with the retailer. DeLauro requested the department suspend enforcing the fifteen day advanced notice and ten day grace period policy for any wage and hour investigation. The department defended the policy in a response letter sent late last night.

http://www.house.gov/delauro/press/2005/March/walmart_fine_03_17_05.html

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