8/04/2004

Wal-Mart Watch: Wal-Mart considers a settlement over its exploitation of undocumented workers: Wal-Mart Stores Inc. is in talks to settle a federal investigation into whether the retailer knowingly hired contractors who used illegal immigrants to clean its stores, according to people close to the company and the investigation. The talks involve a multimillion-dollar fine. No deal has been struck, but Department of Justice officials and Wal-Mart have discussed a settlement of around $10 million, according to people on both sides. If it settles, Wal-Mart, the world's largest retailer, isn't expected to admit wrongdoing, and criminal charges aren't expected to be brought against the company's top executives. The settlement, however, is likely to include conditions that provide for a stiffer penalty if the retailer is found to hire undocumented workers in the future, these people said. The Bentonville, Ark., retailer has been the subject of a seven-month federal grand-jury probe into violations of federal immigration laws. The grand jury -- seated in Scranton, Pa., because state and federal investigations into janitorial contractors emanated from this region -- is still conducting hearings, but it could be wrapped up by year end, Thomas Marino, U.S. attorney for the Middle District of Pennsylvania, Tuesday told the Patriot-News of Harrisburg, Pa. Mr. Marino also told the newspaper that unless any new evidence surfaces, indictments against Wal-Mart executives were unlikely.

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