The Center for Public Integrity

A federal judge ruled Thursday that Walmart can be added to a lawsuit alleging widespread wage theft at a Southern California warehouse.

Lawyers for contract workers at the Schneider Logistics warehouse in Mira Loma, Calif. – whose sole customer is Walmart – had moved to add the retailer to the case in November.

Thursday's ruling by U.S. District Judge Christina Snyder will force Walmart to defend itself against allegations that Schneider, at Walmart’s behest, cheated as many as 1,800 low-wage workers out of millions of dollars.

Walmart fought becoming a late addition to the case, but Snyder wrote that the plaintiffs had a “good faith explanation that they did not seek to name Walmart as a defendant until this stage of the litigation because they only recently uncovered evidence in discovery that justifies a lawsuit against Walmart.”

The lawsuit, filed in October 2011, claims that Schneider and two staffing agencies, Premier Warehousing Ventures LLC and Impact Logistics Inc., failed to keep proper payroll records, falsified time sheets and misled workers about the amount of money they had earned.

All three companies have denied the allegations. The staffing agencies, however, agreed to pay a collective $450,000 in fines and back wages to settle citations issued by California labor officials after a warehouse raid last year. Schneider was not cited by the state.

Walmart spokesman Dan Fogleman did not immediately respond to a request for comment Thursday. Last November, he said: “While we have a set of quality standards that must be met, the third party service providers we utilize are responsible for running their day-to-day business. They manage their people completely independent of us.”

SYRACUSE, N.Y. — The temperature outside barely reached double digits on the morning of Jan. 15, 2009, and, inside the Crucible Specialty Metals steel mill here, it was bitterly cold. Ice coated the equipment, forcing employees to use torches to free the machines so they could start their work.

Danger was everywhere, federal records show. Equipment was old and in disrepair. Molten steel snaked through the building, and, at any moment, could snag and twist out of control, burning anything in its path. Shafts driving the machines that compress the steel spun at high speeds with no guards to shield employees working nearby. Sometimes, workers said, the torches backfired and burned them.

This was Jack Grobsmith’s domain. He’d worked at Crucible for more than 35 years and had ascended to the position of head roller. He adjusted the equipment and made sure the steel bars came out just the right size. Around the factory, he was known as a jokester with a purpose — showing up at events in character as Crucibella, donning a dress, lipstick and ‘60s-era Easter hat to preach about safety.

That frigid January morning, Grobsmith went to one of the stands that compresses steel to hook up a water hose. Next to him, two rotating shafts driven by a 900-horse-power motor spun at 240 revolutions per minute. Grobsmith struggled with the hose, which was covered in grease, then slipped on ice coating the area.

The shafts pulled him in, crushed his body and shot him out the other side.

Grobsmith’s assistant roller and longtime friend Rocky Saccone ran over. “It just happened so fast,” recalled Saccone, who retired a few months later. “We pulled him out, and that was it.”

The Center for Public Integrity’s analysis relies on data from multiple sources, including the Occupational Safety and Health Administration, the Treasury Department and the Justice Department. Using the Freedom of Information Act, the Center obtained an extract of OSHA’s master database of inspection records, known as the Integrated Management Information System, or IMIS. The portion received by the Center contains information about more than 1 million workplace safety and health inspections conducted from Jan. 1, 2001, to the date in early August 2012 when the data were provided.

In analyzing both penalties initially imposed by OSHA and penalties ultimately collected, the Center used only cases considered “closed” by the agency. This excluded some recent cases in which an employer may still be contesting violations or in which OSHA, the Treasury Department or another entity is still attempting to collect a fine. When calculating penalties initially imposed, the Center included violations and their accompanying fines that were later deleted as part of settlement negotiations or the litigation process.

The Treasury Department agreed to provide data on OSHA debts collected under its cross-servicing program for the fiscal years 2006 to 2012. Collection rates were calculated using the total amount collected and the total amount referred in a given year. Data that would trace individual debts across years was not available.

CHICAGO — By the time Carlos Centeno arrived at the Loyola University Hospital Burn Center, more than 98 minutes had elapsed since his head, torso, arms and legs had been scalded by a 185-degree solution of water and citric acid inside a factory on this city’s southwestern edge.

The laborer, assigned to the plant that afternoon in November 2011 by a temporary staffing agency, was showered with the solution after it erupted from the open hatch of a 500-gallon chemical tank he was cleaning. Factory bosses, federal investigators would later contend, refused to call an ambulance as he awaited help, shirtless and screaming. He arrived at Loyola only after first being driven to a clinic by a co-worker.

At admission Centeno had burns over 80 percent of his body and suffered a pain level of 10 on a scale of 10, medical records show. Clad in a T-shirt, he wore no protective gear other than rubber boots and latex gloves in the factory, which makes household and personal-care products.

Centeno, 50, died three weeks later, on December 8, 2011.

A narrative account of the accident that killed him — and a description of conditions inside the Raani Corp. plant in Bedford Park, Ill. — are included in a U.S. Occupational Safety and Health Administration memorandum obtained by the Center for Public Integrity. The 11-page OSHA memo, dated May 10, 2012, argues that safety breakdowns in the plant warrant criminal prosecution — a rarity in worker death cases.

The story behind Centeno’s death underscores the burden faced by some of America’s 2.5 million temporary, or contingent, workers — a growing but mostly invisible group of laborers who often toil in the least desirable, most dangerous jobs. Such workers are hurt more frequently than permanent employees and their injuries often go unrecorded, new research shows.

MIRA LOMA, Calif. – Lawyers alleging wage theft from mostly immigrant Latino contract workers at a Southern California warehouse complex took steps today to add Walmart as a defendant in an ongoing federal lawsuit.

The move is expected to draw the nation’s largest retailer into a case in which it had, heretofore, been tangentially involved – and raises questions about the human cost of Walmart’s tightly controlled supply chain, which relies heavily on contractors and subcontractors.

“Walmart employs a network of contractors and subcontractors who have habitually broken the law to keep their labor costs low and profit margins high,” Michael Rubin, a lawyer for the workers, contended in a written statement to the Center for Public Integrity and the Center for Investigative Reporting. “We believe Walmart knows exactly what is happening and is ultimately responsible for stealing millions of dollars from the low-wage warehouse workers who move Walmart merchandise.”

A court document filed today in Los Angeles claims, "Recent discovery has established that Walmart bears ultimate responsibility for the violations of state and federal law committed against plaintiff warehouse workers," who "perform hard physical labor for long hours with little pay under hot, hazardous, and dust-filled conditions, unloading and loading trucks destined for Walmart stores and distribution centers throughout the United States."

The class-action lawsuit, filed in October 2011, accuses the owner of the Mira Loma warehouse complex, Schneider Logistics Transloading and Distribution, and two staffing agencies of cheating contract workers out of pay.

WINDSOR, Ontario — When some women walk onto a factory floor, punch their time card at a food processing facility, or start their shift at the foundry, they are literally dying to go to work, union members and health care advocates say.

A study that showed women working in those industries have a higher risk for breast cancer raised calls for protection of those workers.

And after the study’s principal researchers presented the results of their work to about 40 people here Monday, the reaction was anger, rather than fear.

“We have to say enough is enough,” said Terry Weymouth, a skills co-ordinator with the Canadian Auto Workers. “We are not dying because we need jobs.

“It’s time we stand up and say this is not right,” she said. “We should be mad. One in nine women are diagnosed with breast cancer.”

The six-year study, published Monday in the journal Environmental Health, examined the occupational histories of 1,006 women in Essex and Kent counties who had breast cancer, and another 1,146 who did not.

The researchers, who came from Canada, the U.S., and the U.K., took into account factors like smoking, weight, alcohol use and other lifestyle and reproductive factors. The women in the study worked in auto parts plants, casinos, food canning factories, on farms, and in metalworking plants.

The researchers found that women who work in the automotive plastics industry were almost five times as likely to develop breast cancer, prior to menopause, as women in a control group.

Lead researcher James Brophy called the work “a local study that has far-reaching implications.”

A federal enforcement blitz targeting coal mines with potentially dangerous levels of dust found a host of violations at more than a dozen sites where conditions left miners at risk for developing black lung disease.

Following the April 2010 explosion at the Upper Big Branch mine in southern West Virginia, regulators have focused on problem mines under a new special enforcement program. The most recent round of inspections, however, used new criteria to target mines likely to have problems controlling the dust that can lead to black lung.

The inspections followed a Center for Public Integrity-NPR investigation that highlighted the resurgence of black lung disease and exposed widespread misconduct by coal companies and often-lax enforcement by the federal Mine Safety and Health Administration.

In September, inspectors found more than 120 violations at 13 coal mines. Many companies failed to ventilate working areas properly and relied on broken-down equipment to suppress dust, citations allege. Two of the mines cited are owned by Robert Murray, who has lent strong support to presidential candidate Mitt Romney. A representative for Murray Energy Corp. could not be reached for comment Wednesday.

The inspections focused heavily on mines in Appalachia, where the increase in black lung has been most dramatic. Overall, rates of the disease have declined since 1969, when, in a landmark law, Congress forced companies to control dust levels.