BRAD SELIGMAN (SBN 083838)

JOCELYN D. LARKIN (SBN 110817)

THE IMPACT FUND

125 University Avenue

Berkeley, CA 94710

Telephone:        (510) 845-3473

Facsimile:         (510) 845-3654

 

JOSEPH SELLERS

CHRISTINE WEBBER

COHEN, MILSTEIN, HAUSFELD & TOLL

West Tower – Suite 500

1100 New York Avenue

Washington, D.C. 20005-3964

Telephone:        (202) 408-4600

Facsimile:         (202) 408-4699

 

IRMA D. HERRERA (SBN 98658)

DEBRA A. SMITH (SBN 147863)

EQUAL RIGHTS ADVOCATES

1663 Mission Street, Suite 250

San Francisco, CA 94103

Telephone:        (415) 621-0672

Facsimile:         (415) 621-6744

STEPHEN TINKLER

MERIT BENNETT

TINKLER & BENNETT

309 Johnson Street

Santa Fe, New Mexico 87501

Telephone:        (505) 986-0269

Facsimile:         (505) 982-6698

 

SHEILA Y. THOMAS (SBN 161403)

EQUAL RIGHTS ADVOCATES

5260 Proctor Avenue

Oakland, CA 94618

Telephone:        (510) 339-3739

Facsimile:         (510) 339-3723

 

DEBRA GARDNER

PUBLIC JUSTICE CENTER

500 East Lexington Street

Baltimore, MD 21202

Telephone:        (410) 625-9409

Facsimile:         (410) 625-9423

 

STEVE STEMERMAN (SBN 067690)

ELIZABETH LAWRENCE (SBN 111781)

DAVIS, COWELL & BOWE

100 Van Ness Avenue, 20th Floor

San Francisco, CA 94102

Telephone:        (415) 626-1880

Facsimile:         (415) 626-2860

 

Attorneys for Plaintiffs

SHAUNA MARSHALL (SBN 90641)

HASTINGS COLLEGE OF THE LAW

200 McAllister Street

San Francisco, CA 94102

Telephone:        (415) 581-8922

Facsimile:         (415) 557-7895

UNITED STATES DISTRICT COURT

 

NORTHERN DISTRICT OF CALIFORNIA

 

 

BETTY DUKES, PATRICIA SURGESON, CLEO PAGE, CHRISTINE KWAPNOSKI, DEBORAH GUNTER, KAREN WILLIAMSON AND EDITH ARANA, on behalf of themselves and all others similarly situated,

 

                        Plaintiffs,

            vs.

WAL-MART STORES, INC.,

                        Defendant.

Case No. C-01-2252 MJJ

 

 

DECLARATION OF NANCY HOM IN SUPPORT OF PLAINTIFFS' MOTION FOR CLASS CERTIFICATION

 

I, Nancy Hom, declare:

            1.  I was an Assistant Manager for Sam’s Clubs for 10 years, from 1991 until 2001.  I am female and live in Concord, California.

            2.  I had been employed in retail management for nearly 20 years when I was hired by Wal-Mart, Inc. to be an Assistant Manager at Sam’s Club.  I was originally told that I would be in  management training for several months, but after approximately two weeks of training with Sam’s Club, I was made an Assistant Manager.  I remained as an Assistant Manager for the next 10 years and never received a promotion.  I  never received any discipline.  I was never given any direction or guidance as to what I needed to do to become a General (or Club) Manager.

            3.  My first assignment for Sam’s Club was in Omaha, Nebraska, where I was an Assistant Manager.   The Director of Operations, Bruce Redding, told me that if I worked hard I would be promoted to General Manager.  At one point, he spoke to me about transferring to Las Vegas, Nevada, to show the women there that a woman could be a manager.  He never transferred me to Las Vegas, and gave no explanation. 

            4.  After about a year in Nebraska, I received a telephone call from the People Division in the Home Office in Bentonville, Arkansas, directing me to transfer to Yuba City, California with a week’s notice.  I understood when I was hired that I had to be willing to move on short notice to any place requested by Wal-Mart.  I moved with my children from Nebraska to Yuba City where I was an Assistant Manager for approximately one year.  

            5.  While at the Yuba City Club in 1993,  I asked Director of Operations Marvin Moxley to promote me to the position of  General Manager.  He responded by asking with a tone of sarcasm why I felt I could be a General Manager.  I responded by asking him why he thought I could not be one.  He merely laughed in response, and gave me no further information.  He did not appear to take my request seriously.  At that time, I was not aware of any female General Managers or female Directors of Operations within Sam’s Club.  There was no application to complete to express my interest in this position. 

            6.  From Yuba City, I was  transferred  to Oxnard, California to be an  Assistant Manager.  Again, at the request of Wal-Mart, Inc., I moved with my children to help open a new club.

            7.  After about a year in Oxnard, I transferred to Concord, California in 1994 where I remained until I left in October 2001.  I left my employment with Sam’s Club because I was permanently disabled as a result of a workplace injury. 

            8.  The policies and practices followed at each of these Sam’s Clubs in Nebraska and California were the same.  When I first began at Sam’s Club, there were no handbooks or written guidelines for Sam’s Clubs.  Instead, we used and relied upon the manual and guidelines used at Wal-Mart Stores.  Eventually, a Sam’s Club manual was created.  Each of the clubs I worked at had a manual in the manager’s office which contained the policies and guidelines issued by the Home Office in Bentonville, Arkansas.  When a new policy or guideline was issued, it was sent by the Home Office with instructions to insert it in the notebook.  The policies and guidelines in the notebook included directives on personnel policies, including hiring and harassment, in addition to sales, inventory and merchandise procedures.

            9.  When I began working at Sam’s Clubs, no job positions were posted.  Postings for hourly positions at the Club level began in the late 1990s.  However, even when we posted a job as open or available to permit interested employees to sign up for consideration, I observed that the General Managers frequently had already selected the person for the position.  I recall, for example, General Manager Alan Oshier at the Concord Sam’s Club directed me to post positions when he had already expressed to me his decision on who would be given the job.  In particular, I recall that Mr. Oshier had already told me who he had selected as the new Check Out Supervisor at the same time he was directing me to post the position as available.  Mr. Oshier also told me who he had selected as Team Leaders, or hourly supervisors, at the time he was directing me to post the positions.

            10.  Each day at Sam’s Clubs, we received reports from the Home Office in Bentonville, Arkansas.  We received regular and frequent reports reflecting financial results and goals, including sales and profits and merchandising information.  Over the years, we received additional reports.  By the late 1990s, in addition to the reports on sales and profits, we also received reports showing employee turnover rates on a club basis.  These reports were modified over time, and later also showed the demographics of club associates.  This information was sent to our club on a monthly basis.  By examining these “People Profit and Loss” reports, one could see what percentage of associates at our club were female, and what percentage of club management was female.  Although we received these reports monthly, I do not recall a single instance when any General Manager or Director of Operations ever mentioned our club demographics or discussed this report at all.

            11.  Each day we sent to Home Office reports reflecting sales and inventory numbers.  In the early 1990s, we made and received these reports by telephone.  By 2001, these reports were generally sent through computer communications.  However, even when the reports became computer-generated, there were still typically daily telephone calls with the Regional or Home Office.

            12.  As Assistant Manager, I participated in hiring hourly employees upon occasion.  Neither the Yuba City club nor the Oxnard club had opened when I arrived and so I helped interview many applicants.  The final hiring decisions were made by the General Managers.  The pay rates were established by the Home Office in Bentonville, Arkansas, but the General Manager at the Club had discretion to pay more to any newly hired individual.  I observed General Managers paying newly hired male employees more than they paid newly hired female employees.  For example, General Manager Alan Oshier paid John Naslund approximately $15.00 an hour when he was hired in early 2001.  I am unaware of any female employee receiving a comparable rate when first hired.

            13.  In helping to open the Yuba City and the Oxnard Sam’s Clubs, part of my responsibilities included ensuring the policies and procedures established by the home office in Bentonville, Arkansas were implemented at the club level.  I did this by discussing these Home Office directives with the hourly employees who reported to me.  In addition, when I worked at the Concord club, I was responsible for training newly hired employees and orientation.  The materials I used for new hire orientation came from Home Office.

            14.  In 1992, I received in the mail a copy of a letter that was addressed to Helen Walton, the widow of founder Sam Walton, Rob Walton, the founder’s son, Bud Walton, the brother of Sam Walton and a number of top executives of the company.  This letter indicated that it was from eighty Assistant Managers, General Managers and Directors and I understood that copies were being sent to store level management across the country.  The letter was dated September 26, 1992. Attached to it was a second letter, dated July 20, 1992, again addressed to the Waltons and to company executives.  I received these letters at the club where I worked in the usual course of business.  The envelopes were addressed to Managers and Assistant Managers.  After reading and copying these letters, I gave the originals to the General Manager of the Club.  I took copies home with me and have kept them at my home.  True and correct copies of these two letters are attached hereto as Hom Exhibits A and B respectively.  These letters stated, among other things, that there was a pattern of discrimination against women at Sam’s Clubs, and asked for the help and attention of the addressees.  The letters also stated that they were prepared on behalf of a large number of managers and highlighted other issues of concern including a fear of retaliation for expressing these concerns.  I do not know who wrote these letters, and I was not asked to participate in drafting them.  No one in management asked me anything about these letters.  I am unaware of any response to these letters.

15.  In 1993, I received another letter in the mail at the club where I worked.  This letter was addressed to Sam’s Assistant Managers, General Managers, and Directors of Operations.  It stated that it was from over 100 Sam’s Management Members.  After reading and copying this letter, I gave the original to my General Manager and took a copy home with me, where I have kept it ever since.  A true and correct copy is attached hereto as Hom Exhibit C.  This letter stated that women were discriminated against, passed over for promotions, talked down to, and black listed for using the Open Door.  I do not know who wrote this letter.  I am unaware of any response from Sam’s Club or Wal-Mart management as a result of this letter.  I was not asked anything about this letter or about the claims asserted in it.

            16.  In 1993, I was severely injured in a workplace accident.  After I transferred to the Concord, California club, I was demoted to an hourly employee.  Several weeks after I complained in writing to the Home Office in Bentonville, Arkansas, my title of “Assistant Manager” was restored and I was given the position of “Export Manager.”  However, my salary was decreased and frozen.  In addition, I no longer received Geographical Assistance Pay (“GAP”), which is additional compensation given to Assistant Managers and above to compensate for the increased local costs of living, compared to the base salaries set in Bentonville, Arkansas.  GAP at the Concord club at that time was approximately 30% of my annual salary.  I protested many times to the Club and Regional management and to the Home Office using the Open Door policy.  I explained that Mr. Dave Columb, who had been “Export Manager” before me, had received GAP.  Eventually, my GAP pay was restored after a delay of some months.  However, I did not receive GAP retroactively for the months in which I waited.

            17.  As a result of my use of the Open Door, I was told by Regional Personnel Manager  Rita Seckington that “We would be watching”, and if I did not perform, I would “be coached right out the front door”.  Director of Operations Phil Goodwin asked me if I realized what I had done, getting the “big boys” involved.  I understood these comments to be threats of retaliation for my use of the Open Door.

            18.  As an Assistant Manager at the Concord club, I worked with and sometimes supervised Christine Kwapnoski, now a named plaintiff in this action.  During the years 1994 through 2001, Ms. Kwapnoski often expressed to me her desire to become a manager at Sam’s Club.  I passed on Ms. Kwapnoski’s wish for promotion to Directors of Operations Phil Goodwin, and to the General Managers of the Concord club, including Alan Oshier, Mike Bruegger, Ed Walker, Harley Lowe, and Chet Wayne.   Ms. Kwapnoski worked in the receiving and claims area with me.  I found her to be an excellent employee and suggested merit raises be awarded to her on more than one occasion.

            19.  In spring of 2001, the Receiving Area Manager position became vacant.  I suggested Ms. Kwapnoski be given the position, based on her experience, work ethic and her potential.  She had been qualified for the position for several years, as she had been an excellent receiving and claims area employee, and had been a Team Leader in another area of the club.  Nevertheless, she had been repeatedly passed over for this position.  Director of Operations Phil Goodwin asked me who I thought should be given the position, and I suggested Ms. Kwapnoski.  Mr. Goodwin was adamantly opposed to giving this promotion to her, saying that she had “people issues”.  Mr. Goodwin was in the Concord store a few times a month.  I worked with Ms. Kwapnoski daily and I believed she was qualified for the position.  Mr. Goodwin asked if I would cover the Receiving Area Manager position until someone was selected for the job.  Shortly thereafter, approximately two weeks after this litigation was filed, Ms. Kwapnoski was finally allowed to be the Receiving Area Manager. 

            20.  Although he blocked Ms. Kwapnoski from being promoted due to unspecified “people issues”, Mr. Goodwin did not hold Store Manager Alan Oshier to a similar standard.  Mr. Oshier lost his temper with Club associates on a very frequent basis.  His outbursts were loud, often cruelly personal, and common knowledge among most of the employees at the Club.  Mr. Oshier told me that Mr. Goodwin had instructed him to take an anger management course.  Mr. Goodwin never expressed to me a belief that Mr. Oshier had “people issues” or that he should not be in management because of these outbursts.

            21.  In my experience, male managers that I worked with over the years, including Mr. Goodwin and Mr. Oshier, had stereotypical images of how women should behave.  Ms. Kwapnoski did not always fit this image.

            22.  Ms. Kwapnoski had previously been passed over for numerous other positions, which I, as Assistant Manager, believed her to be the most qualified.  For example, Tyler Whitney, Bryce Sherman, and Joshua Reynolds were all Area Managers long before Ms. Kwapnoski was promoted to that position.  In my opinion, none of these men were any more qualified than Ms.Kwapnoski, and none of them had the amount of seniority that Ms.Kwapnoski did. 

            23.  I observed more frequent and larger merit raises and larger annual raises given to men than to women repeatedly at Sam’s Clubs throughout my career.  At the Concord Sam’s Club, General Manager Oshier often gave large raises  to men.  For example, I recall Ernie Tautalatasi receiving raises totaling approximately $2.00 an hour in 2000, his first year at the Concord Club. The following year, his raises increased his hourly rate by approximately $1.25 an hour.  Henry Sargent was hired in approximately the fall of 2000.  I recall that within months, he had been given raises totaling approximately $4.00 an hour.   Women were not given raises with the same frequency or ease.  For example, I was told by General Manager Mike Bruegger not to come back to him with a request for another raise for Christine Kwapnoski.  Another female employee, Cassandra Iman, was not given raises consistent with her performance or in comparison with male associates.

24.  I observed disparate treatment of men and women engaged in prohibited personal relationships.  For example, Assistant Manager Richard Putnam at a store in the Sacramento area was accused of having an inappropriate personal relationship with a female hourly employee.  The female employee was terminated.  Only when greater protest was lodged with the Home Office by Mr. Putnam’s wife was Mr. Putnam disciplined.  He was terminated but rehired three months later in the same position.  To my knowledge, the female hourly employee was not rehired. 

            25.  The workplace atmosphere at the Concord Sam’s Club was one of hostility towards women in management.  For example, when Director of Operations Goodwin telephoned the Club and I answered, he frequently would ask to speak with “a manager”.  When I would remind him that I was a manager, he would merely respond by asking me to have one of “the guys” return his call.  Assistant Manager Richie King told me that the Region was run as a “good old boys’ club”

and added that he “was not complaining”.  The male managers socialized together, to the exclusion of the female managers. 

            26.  I have personal knowledge of each and every fact set forth in this Declaration, and if called to testify as a witness in this matter, I could and would competently testify to each of these facts.

            I declare under penalty of perjury of the laws of the United States and California that the foregoing is true and correct.

            This Declaration was signed by me on April _______, 2003, at Concord, California.

 

                                                                                    __________________________________

                                                                                                            Nancy Hom