The U.S. Labor Department on Thursday accused Edina-based Nash Finch Co., the nation's second-largest publicly traded grocery wholesaler, of systematically discriminating against more than 80 women at a North Carolina distribution center.
The department's Office of Federal Contract Compliance Programs said in a complaint that it wants Nash Finch to pay back wages and offer jobs to the 80 women. The Labor Department also is seeking to cancel Nash Finch's military contracts and subcontracts -- and prohibit any new ones -- until the firm remedies its alleged discrimination issues.
Nash Finch is one of the largest grocery distributors to U.S. military commissaries and exchanges, with military business making up 38 percent of its $5.2 billion in sales in 2009. Food manufacturers contract directly with the military, then subcontract with wholesalers like Nash Finch to deliver their goods to military bases.
Nash Finch did not return calls seeking comment.
The North Carolina complaint comes on the heels of Nash Finch settlements with the Labor Department in three other discrimination cases over the past decade, one each in St. Cloud, Omaha and Norfolk, Va.
In those cases, the Labor Department said it uncovered "serious violations of the law" regarding record keeping and hiring discrimination, and found that Nash Finch's policies and procedures "created an uneven playing field" for job seekers who were women, minorities and veterans.
Those cases were settled before the Labor Department lodged formal complaints.
"It is unacceptable that a company which profits from lucrative federal contracts would repeatedly violate the law in this manner," Patricia Shiu, director of the Labor Department's contract compliance programs, said in a news release.
"Nash Finch has demonstrated an unfortunate pattern and practice of hiring discrimination, and the American taxpayers should not have to bankroll this company's bad behavior anymore."
A Labor Department investigation of Nash Finch's hiring practices at its Lumberton, N.C., operation found that between March 1, 2006, and Dec. 31, 2006, only 6.6 percent of 90 qualified female applicants for the "order selector" position were hired. That compares to 26.6 percent of 150 qualified male applicants.
"The difference between hiring rates for females and males was too great to be random," the Labor Department said in complaint filed with an administrative law judge. The department said its investigation also revealed instances in which female applicants had experience and education comparable or greater than male applicants, but didn't get hired.
The Labor Department claims that it has given Nash Finch opportunities to address the allegations. "These efforts have been unsuccessful," the complaint said.
Mike Hughlett • 612-673-7003
