Business Notes RETAILING

Nordstrom department stores, a 60-store U.S. chain concentrated mostly in the Far West, are renowned for the fine customer service provided by their seemingly tireless salespeople. But does Nordstrom's corporate culture have a dark side? The Washington State department of labor has ruled that the company illegally pressured employees to perform many work-related duties "off the clock." Nordstrom was ordered to pay its Washington clerks two years' worth of overtime, which could amount to several million dollars.

The finding stemmed from a complaint by the United Food and Commercial Workers union that the secret behind Nordstrom's service is grueling pressure to produce sales. The union provided testimony from some former employees who complained of ulcers and 15-hour stretches of work without breaks. Nordstrom acknowledges its hard-driving culture but contends that the claims are exaggerated. Says co-chairman Jim Nordstrom: "Sometimes in an effort to increase production, management may overdo it. We're contest-motivated, and if that puts too much pressure on our people, I'll take the fall on this one."