Walmart-at-the-Crossroads-FINAL-06.04.15

product cost from wages if a distributor refused to deliver any increase in product orders that Flowers
unilaterally imposed.
In their lawsuit, the workers explain that they were not in fact independent contractors because
“distributors’ job duties and ability to earn income is tied directly to the sale and promotion of products
outside of their control.” When they were hired, Flowers “told distributors that they would run their
businesses independently, have the discretion to use their business judgment, and have the ability to
manage their businesses to increase profitability.” According to the lawsuit though, Flowers Foods
directly negotiated with retailers to set the terms for:
wholesale and retail prices for products; service and delivery agreements; shelf space to display
products; product selection; promotional pricing for products; the right to display promotional
materials; print advertisements in retailers’ newspaper ads; and virtually every other term of the
arrangement.
Flowers also provided “computer equipment, administrative support, warehouse space,
advertisements, promotional materials, bakery trays, market advice, strategic development, and virtually
every other business necessity.”
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As a result, distributors were not allowed to decide for themselves
what products to deliver, how much to deliver, when to deliver, or what products to promote or put on
sale. This lawsuit and the other recorded violations demonstrate that Flowers Foods have often treated
its workers unfairly.
Flowers Foods is a rapidly growing company. While 10 percent of the company’s workforce has
union representation, the dozen of unfair labor practice claims and lawsuits that have been filed in the
past five years demonstrate that the remaining non-unionized employees are suffering labor violations.
These lawsuits include failure to pay overtime wages, misclassification of workers employed as
independent contractors, and illegal wage deductions. Furthermore, OSHA has found repeated health
and safety violations in a number of facilities. If Walmart enforced its labor code of conduct on its
suppliers, then perhaps Flowers Foods and its other suppliers would reduce labor and safety violations.
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