Dollar General Shareholders passed a resolution on Wednesday to institute an independent audit for worker safety as the retailer faces mounting pressure to improve conditions.
The proposal, filed by Domini Impact Investments, asked Dollar General’s board of directors to commission an independent, third-party audit to examine the company’s policies and practices and how they affect the safety and well-being of affect employees.
It recommended that the audit include an evaluation of practices that contribute to an unsafe or violent environment, such as staff capacity. It also recommends that the analysis include discussions with employees and customers to arrive at solutions, as well as recommendations for actions to take and regular reporting on the progress of those efforts.
It is not clear whether the proposal is binding.
Dollar General’s board of directors advised shareholders to vote against the measure. The company did not answer when asked if it plans to conduct the audit.
“We are awaiting the final report and will report final results in a Form 8-K within the required timeframe,” a company spokesperson said.
“We strive to create a work environment where employees can develop their careers, serve their local communities and feel valued and heard, and we encourage employees to share their feedback through the many channels provided by the company so that we can listen and working together to address concerns and challenges, as well as celebrate successes,” the spokesperson added.
The company is the fastest growing retailer in the country by number of stores. It employs more than 170,000 full-time and part-time employees in more than 19,000 stores in 47 states and Mexico as of March, according to a securities filing. It plans to open an additional 1,050 stores in fiscal year 2023 and has announced more store openings in 2022 than any other retailer, according to Coresight Research, a retail-focused consulting firm.
As Dollar General expanded its footprint across America, it has racked up more than $21 million in fines from the federal Occupational Safety and Health Administration for a slew of safety hazards, including blocked emergency exits, blocked electrical outlets, and dangerous levels of clutter.
Speaking at the shareholder meeting at Dollar General’s headquarters in Goodlettsville, Tenn., the company’s shareholder David Williams expressed the urgent need for the audit as activists gathered outside the building.
“I am one of hundreds of thousands of Dollar General employees who come to work every day afraid for our safety. We are afraid because we know that Dollar General leaders are not concerned about employee safety,” said Williams. said in his address to shareholders. “The company has grown so fast and so recklessly that on any given day I could have a rat infestation, a door that won’t lock, or someone pointing their gun at me with no security to protect me.”
Williams pointed to the financial implications of Dollar General’s security problems.
Violations include aisles, emergency exits, fire extinguishers and electrical panels being blocked by boxes of merchandise stacked up to six feet high. This can lead to fires where employees and customers cannot leave the store or boxes falling on employees or customers when they navigate the aisles and try to squeeze around them,” Williams said, citing OSHA findings and personal experience.
“This is all compounded by the severe understaffing. It is not uncommon for a worker to be alone in a store at night in areas where robberies are common,” he added.
The repeated OSHA violations have led the agency to designate Dollar General as a “serious offender,” a title reserved for companies that consistently fail to rectify safety concerns.
″[It’s] a program for the worst security offenders in the country. It is rare for a large employer with many workplaces to participate in the serious offender program. Most of the companies in their program are small construction companies,” Debbie Berkowitz, a former chief of staff and senior policy advisor at OSHA, previously said.
In addition to fire hazards and dangerous levels of junk, Dollar General has become a hot spot for gun violence. According to data from Gun Violence Archive, a non-profit organization, 49 people have been killed and 172 injured in Dollar General stores since 2014.