Everyone who knows me knows that I’m a big fan of public-private sector partnerships, but in the case of the Occupational Safety and Health Administration (OSHA) vs. Wal-Mart, the government is going too far. OSHA is going after Wal-Mart for a $7,000 (yes seven-thousand dollar) fine, and the company has spent millions fighting the case.
A recent Fox News headline begs the question, “Why is Wal-Mart spending millions to fight $7,000 fine?” OSHA has complained to news outlets that it has devoted a tremendous number of man hours to the case and seems befuddled that Wal-Mart won’t just pony up the money. But the company has a good reason not to.
According to Wal-Mart, the citation from OSHA “has far-reaching implications for the retail industry that could subject retailers to unfairly harsh penalties and restrictions.” NRF agrees. Wal-Mart is fighting this battle for the industry, and we should all be thankful.
In 2008, Black Friday began with a tragic trampling and death of a store security associate working at a Wal-Mart store in Valley Stream, New York. When the doors opened at 5 am, customers rushed the doors, killing one and leaving four others injured, including a pregnant woman. When police and fire officials arrived on the scene, they were jostled by customers, who hampered rescue efforts. And police were in the store parking lot several times that evening prior to the event. It’s important to note here that the store did take precautions.
Retailers are generally prepared for the “big day.” Whether it’s the holiday season, a celebrity appearance or an unplanned situation that requires security, businesses are constantly planning and preparing for even the most chaotic situations. When a mob spins out of control, even the most prepared retailer (or law enforcement agency) is going to have difficulties.
Take, for example, the recent Lakers win in Los Angeles or trial verdict in Oakland involving a BART officer. Police were on maximum deployment, businesses closed early and both cities still erupted with vandalism, fires and injuries. A small group of individuals engaged in dangerous and illegal activities caused a national spectacle. Police in both cities spent countless hours investigating the crimes and prosecutions are still pending.
In an effort to share industry practices, NRF, with the help of several retailers, released Crowd Management Guidelines last November in addition to a step-by-step checklist for retailers planning for holiday and unexpected emergency management of crowds. Later the same week, almost a year after the incident, OSHA released guidelines as well.
While not perfect, I think retailers do a good job managing sale events and crisis management. The public sector remains a valuable partner to those in our industry. Working together – not levying fines months later – will go much farther in protecting employees, customers and property.
8 Comments
The headline grabbed me,,,,,wish you would answered the question you posed. “Far-reaching implications” is rather vague.
Joe, well written. Principles and integrity always come at a cost.
Having worked in retail management for almost two decades, I’ve seen almost every possible scenario where retailers have opted for the most politically expedient action versus standing on principle, and then had to suffer through the damaging precedence we create for the industry.
It’s inspiring to see that an a major retailer is finally taking a stand! I hope the Board at WalMart, and other industry leaders, recognize the individual(s) in their company who were bold enough to stand up for what they believed to be right, rather than sweep something quickly under the rug.
Thank you Wal-Mart!!!
I agree with Walmart’s stand on this. Great article Joe.
Wal-Mart can’t afford to be found guilty of these cases, even if they are clearly in the wrong; it would send the message to their employees that they should be actively reporting signs of wrongdoing on the job, especially OSHA violations, which would send costs up as they would have to either spend more money on legal defense or have to institute safety policies and update their existing policies in all areas.
Wal-Mart does have excellent safety precautions and preparations on paper, but internally they are almost universally ignored or overridden by management orders, and associates or management are subject to disciplinary action up to and including termination for insisting on following these precautions or reporting violations.
I believe that Wal-Mart should fight this fine on principal. The government is becoming too intrusive in matters as it is. It seems to be a hassle but where does this government intervention stop?
Who is Wal-Mart kidding? They are only fighting for themselves. If this OSHA violation is enforced they will stand to pay millions more in damages from the peoples families who were killed or injured. I don’t know if I would call that integrity or not.
Wal-Mart used to care when Sam was alive, but now it is all about the money. The kids sold us out to China, sold out most of the full time employees and benefits, sold out good vendors and put them out of business and this is another avenue for them to save millions by fighting 7k. They would rather give it to lawyers than people…they have become the worst thing for our nation, yet they continue to find friends in groups by playing one side against the other. They continue to cut prices in one market to destroy other businesses and the raise them when they get what they want. This is the only American company without a heart that I have seen in my 40 plus years.
I don’t agree they can foresee everything; however, we would need to see how they improved their security from the past year to learn if they are at fault.
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[...] Federation is applauding Walmart’s move for another reason: Fear that this tiny little OSHA case could set a big, nasty precedent that could spell future headaches and more regulation surrounding special-event management for all [...]
[...] Why Wal-Mart is spending millions to fight a $7,000 fine: The company worries that the fine over a trampling death on Black Friday 2008 could set a dangerous precedent. (NRF Blog, US) [...]