Retail credit card fee settlement gets preliminary OK

Fri, Nov 09 17:17 PM EST By Jessica Dye (Reuters) - A U.S. judge on Friday granted preliminary approval to a proposed $7.2 billion settlement between merchants and Visa Inc and Mastercard Inc over credit card fees, despite objections from hundreds of retailers, including Wal-Mart Stores Inc. If the deal receives final approval from U.S. District Court Judge John Gleeson of Brooklyn, New York, it would be the largest federal antitrust settlement in U.S. history, offering nearly 8 million merchants $7.2 billion in cash and temporary reductions in the interchange, or swipe fees, they pay to process credit and debit transactions. Visa and Mastercard agreed to amend their no-surcharge policies within 60 days of preliminary approval of the deal, allowing merchants to charge customers extra for paying by credit or debit, although that will be restricted by state law. The stores that take Visa and Mastercard will be provisionally certified for settlement purposes and notified of their legal rights. Full terms of the deal will not take effect unless Gleeson gives final approval, which Visa and Mastercard say they believe will occur. The judge will hold a hearing to give objectors a chance to weigh in before then, although no date has yet been set. The $1.2 billion in temporary swipe-fee relief will take effect shortly after class members have been given an opportunity to opt out of receiving the monetary damages, even if the deal never receives final approval, according to settlement papers. During a packed hearing on Friday, lawyers for dozens of objectors -- including Target Corp and Home Depot Inc -- told the judge that the settlement offered meaningless relief for merchants saddled with an estimated $30 billion in annual swipe fees. They also argued that releases shielding Visa and Mastercard from new litigation over the same claims would violate their legal rights and give the two companies protection from for any future anti-competitive behavior. No opt-out mechanism is provided for the no-surcharge rules or litigation releases. Lawyers for several dozen stores that support the pact -- which include major grocery chains Kroger Coand Safeway Inc -- told Gleeson that these concerns were based on "misinformation." "It's a lot of smoke and there's very little fire," said Richard Arnold, who represents some of the objectors. Gleeson called the initial objections "overstated" but noted that the legal standard for final approval would be much higher. Gleeson has yet to schedule a hearing on final approval. "I don't mean to suggest there aren't a number of issues that are going to require significant scrutiny," he said. Gleeson said he was considering whether to appoint an independent expert to help him understand the economic impact of the changes to Visa and Mastercard's no-surcharge rules. Visa general counsel Josh Floum said the company looked forward to bringing "closure" to the case, after seven years of litigation, including two years of settlement talks. "While we recognize some merchants may have different opinions, the settlement represents a solution reached after years of litigation and months of negotiation," said Mastercard general counsel Noah Hanft. Objecting merchants said they were prepared to keep fighting. "This is the beginning of a long process, and we're not remotely deterred by what happened today," said Jeff Shinder, a lawyer for 10 of the 19 original plaintiffs who have rejected the settlement. Mallory Duncan, general counsel for the National Retail Federation, one of the largest U.S. trade associations for retailers, said it was considering its legal options. "This proposal benefits no one but lawyers and credit card companies, and should not be forced on the retail industry or retailers' customers," he said. (Reporting by Jessica Dye in New York; Writing by Brad Dorfman and Jessica Dye; Editing by Leslie Adler, David Gregorio and Dan Grebler) =================== Walmart strike goes nationwide on Black Friday Get short URL email story to a friendprint version Published: 23 November, 2012, 21:06 TAGS: Conflict, Protest, Human rights, USA, Global economy Walmart store.(AFP Photo / Don Emmert) Angered by low pay and poor treatment, Walmart employees across the US went on strike during the retailer’s Black Friday event, protesting to draw attention to their working conditions. For the first time in Walmart’s 50-year history, workers at multiple stores walked off their jobs to go on strike. Walmart’s 1.4 million US employees are not protected by a labor union and have recently filed more than 20 charges of unfair labor practices with the National Labor Relation Board (NLRB). In the weeks leading up to the planned strike, Walmart attempted to get an injunction to halt the protests planned for the Thanksgiving weekend. But federal labor officials said there was not enough time to make a decision on the injunction before Thanksgiving, thereby making it impossible to halt the protests. When Walmart opened its stores to begin its Black Friday sales at 8 p.m. Thursday, a number of workers walked off their jobs and picketed the retailer. More than 70 Los Angeles employees from nine stores left their jobs Thursday and 250 workers and supporters protested outside the Pico Rivera Walmart store, the Huffington Post reported. Holding signs that read, “One Strike for the Freedom to Speak Out” and “Walmart Strike Against Retaliation”, the workers, who organized under a group they called OUR Walmart, hoped to draw attention to their cause. “We’re not trying to shut down business; we are supporting our co-workers who speak out for better working conditions,” OUR Walmart member Yesenia Yaber told the Wall Street Journal. The protesters are demanding a minimum hourly pay of $13, more full-time work and more affordable healthcare. “What we want customers to do when they come into Walmart is ask the manager, ‘Why can’t you give them better schedules? Why can’t you pay them more?” protest organizer for the United Food and Commercial Workers Union, which works with OUR Walmart, told KSTP TV. Former Wal-Mart employee Felipa Balderas, who was terminated after filing a complaint, takes a moment of silence as workers and supporters prepare to march outside of local Walmart retail stores on Black Friday November 23, 2012 in Milwaukee, Wisconsin. The protestors were calling for better wages and working conditions for the employees.(AFP Photo / Darren Hauck) In the days leading up to the Black Friday shopping events, Walmart refused to acknowledge the wishes of its protesting employees, claiming that the few who protest will not have much of an impact on their sales. The retailer on Friday published a press release reporting its “best ever Black Friday events”, which “saw larger crowds than last year and a huge response to its first ever one-hour guarantee on key electronic items”. The retail chain claims that only 26 Walmart protests occurred on Thursday night, many of which did not include any Walmart associates. But while the retailer appeared unconcerned on Black Friday, its actions leading up to the protest point towards a possible attempt to try to silence its employees. Walmart employees recently filed a charge on behalf of Monique Velasquez, a Pico Rivera employee who joined protesters on Thursday. The woman told the Huffington Post that once she joined the advocacy group OUR Walmart, her hours were cut from 30 hours a week to eight. As a single mother of five children, she was unable to pay any of her bills with just eight weekly hours of pay. “I’m striking because I was retaliated against for speaking out,” she said. “Anyone who goes against management, you’re pretty much putting a target on your back,” she added. “They intimidate you by cutting hours or picking on you in any way they can.” Another unfair labor practice charge OUR Walmart filed with the NLRB claims that Walmart’s human resources department violated the National Labor Relations Act by instructing store managers to threaten workers with termination and disciplinary actions if they participate in the strikes. Those who were willing to put their jobs on the line to speak up against their employer took to the streets, protesting peacefully outside of the retail chain without obstructing the entrance. Strikes were scheduled in Chicago, Milwaukee, Washington D.C., Dallas, Los Angeles, Sacramento, California, San Francisco and Seattle, most of which began in the early morning Friday. And while millions of Americans stocked up on towels, DVD players, video games, televisions and bicycles, many of Walmart’s poorly paid employees were forced to sacrifice Thanksgiving dinner to work through the night. ===========