US officials announced a deal on Wednesday, August 23, with the corporation that owns Dollar Tree and Family Dollar to improve safety for employees at thousands of discount shops around the nation.
Officials from the Labor Department noted risks at the establishments, such as obstructed exits, dangerous storage of products, and inaccessibility to fire extinguishers and electrical panels.
In 2015, Family Dollar was purchased by Dollar Tree, based in Chesapeake, Virginia, for close to $9 billion. According to the Department of Labor, the corporation employs over 193,000 people and runs over 16,000 Dollar Tree and Family Dollar shops throughout the US and Canada.
'More Work Has To Be Done'
The agreement states that within two years, Dollar Tree's chain shops must identify the root causes of Occupational Safety and Health Administration (OSHA) breaches that have been penalized at several locations.
OSHA has issued 403 violations at Dollar Tree and Family Dollar shops since 2017, according to Assistant Labor Secretary Doug Parker. This has resulted in penalties of more than $13.1 million. Although the corporation made a few major improvements in worker safety after a 2015 settlement that ran out in 2018, repeated infractions suggest that more work has to be done, said Parker.
"These are entirely preventable violations and hazards. And it's the employer's... responsibility, to keep these workers safe. These improvements will not happen overnight, but this agreement will create a pathway for significant investment by the company to put in place controls that we believe will make workers safer."
Solicitor of Labor Seema Nanda said that the agreement, which was signed last week, applies to all 10,000 Family Dollar and Dollar Tree businesses under the jurisdiction of the OSHA. Also, as Nanda said, the corporation must have a hotline where employees may report safety concerns at any time and be protected from retribution.
Significant Penalties for Repeat Offenses
Both Dollar Tree and Family Dollar might be hit with significant penalties for any more infractions. According to AP News, in the event that dangers are not effectively addressed within 48 hours of an OSHA alert, the firm might be subject to a punishment of up to $500,000 per store or up to $100,000 each day.
Labor Department officials said on Wednesday that in addition to these fines, Dollar Tree and Family Dollar would pay $1.4 million to satisfy pending, challenged, and open inspections for similar alleged breaches.
Dollar Tree's COO Mike Creedon released a statement on Wednesday saying, "We are implementing substantial safety policies, procedures, and training, all intended to safeguard the wellbeing of our associates. We appreciate the opportunity to engage with OSHA on our safety initiatives as we move forward, seeking to establish our position as a leading retailer in workplace safety."
