Workers: Walmart Contractor Paid $3 to $4 an Hour

Warehouse workers picketing outside Schneider facilities in Mira Loma, CaliforniaLilly Fowler/FairWarning

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As if running around a warehouse 10 hours a day, 6 days a week, in sweltering heat, to move an absurdly large quantity of dildoes, toilet paper, and baby food—as Mac McClelland did while working for an onine shipping giant—weren’t bad enough. Try doing it for less than minimum wage.

Workers at a Walmart warehouse in the Inland Empire in Southern California were sometimes paid as little as $3 to $4 an hour, according to former crew leader Jorge Soto, who says he was ordered to falsify employees’ time sheets to cheat them out of fair pay. Workers at this warehouse and two others in the area have filed a lawsuit that claims, among other things, that they were forced to sign blank time sheets which supervisors would then fill in with less than half of the time actually worked, according to a new investigation by Lilly Fowler for the nonprofit news organization FairWarning.org.

The warehouses in question are run exclusively for Walmart. The retailer, however, isn’t named in the suit because the warehouses are operated by an outside contractor called Schneider Logistics, which in turn subcontracts its hiring to two staffing companies—Impact Logistics and Premier Warehousing—an arrangement that helps to cushion Walmart from liability.

Among the alleged indignities, large and small, workers claim they were required to show up every day only to be sent home without compensation when they weren’t needed, told that they would be blackballed from the industry if they raised questions, and even compelled to pay $1 a week to rent a company-branded shirt. Notes Fowler:

Some support for the workers’ complaints has come from an investigation by California labor authorities. October inspections at Schneider warehouses in Riverside County, which together with San Bernardino County forms the Inland Empire, “confirmed stories of abuses in the warehousing industry that must stop,” Julie A. Su, the California labor commissioner, said in a news release.

Based on the inspections, state authorities proposed fines against Impact and Premier of more than $1.1 million. They accused both companies of failing to provide properly itemized wage statements, leaving workers unaware of what they were being paid for their piece work.

“Employers cannot simply make up a piece rate and change it at their whim,” Su warned.

Read the full story at FairWarning.org.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

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