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Circuit City Layoffs, Will Rehire at Lower Wages

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Circuit City Layoffs, Will Rehire at Lower Wages

Postby Henry Vilas » Thu Mar 29, 2007 4:41 pm

As MSNBC reports - Circuit City plan: Bold strategy or black eye?
When U.S. manufacturers want to cut labor costs they often close up shop and head for a Third World country to find cheap labor. But when retailers want to cut costs they donâ??t have that option because they need stores in American towns if they want to sell to Americans.

Circuit City has found a unique way around this conundrum. On Wednesday officials at the struggling electronics retailer announced they would fire 3,400 of their highest-paid clerks and replace them with workers who will take less money, essentially hoping to find their own bargain-basement work force right here in the good old USA.

I bet those who will lose their jobs wished they had organized a union and gotten a labor contract. Now they are fucked.

With this move, CC also lost 3,400 (at an extreme minimum) customers.
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Postby The Tolerator » Fri Mar 30, 2007 10:40 am

If there was a union instead of 3,400 being out of work it would probably be all their employees out of work.

It looks like a downward spiral for this struggling company. I'm less likely to shop there too after they pulled this stunt.

I heard that their top 6 execs made $33MM in the last three years.
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Postby gargantua » Fri Mar 30, 2007 11:19 am

The Tolerator wrote:If there was a union instead of 3,400 being out of work it would probably be all their employees out of work.

It looks like a downward spiral for this struggling company. I'm less likely to shop there too after they pulled this stunt.

I heard that their top 6 execs made $33MM in the last three years.


I don't share your conclusion. With a union, they may have been able to negotiate some concessions that would have avoided the need to completely alienate so many. After all, they are not eliminating 3,400 jobs, they're eliminating the workers and hoping to hire at least some back at much lower wages. So the jobs are there.
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Postby The Tolerator » Fri Mar 30, 2007 12:46 pm

If there was a union they probably wouldn't have been willing to make the concessions. They're not Airline pilots making $100K+ and they are not autoworkers making whatever it is they make.

If they had a union they would eventually go the way of GM, which if the downsizing trend continues will lead to it complete collapse.

This is just another signal from CC that they are in trouble and probably won't be here 10 years from now, probably not even 5 years from now.

Unions are seldom useful, except when they are government workers unions, because everyone thinks the taxpayers have bottomless pockets.
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Postby Ned Flanders » Fri Mar 30, 2007 1:38 pm

Could Circuit City be more evil than Wal-Mart?

I actually worked at a grocery store that was "unionized". They took their dues out of my $6.50/hour salary.

Good times, good times.
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Postby gargantua » Fri Mar 30, 2007 1:52 pm

The Tolerator wrote:If there was a union they probably wouldn't have been willing to make the concessions. They're not Airline pilots making $100K+ and they are not autoworkers making whatever it is they make.

If they had a union they would eventually go the way of GM, which if the downsizing trend continues will lead to it complete collapse.

This is just another signal from CC that they are in trouble and probably won't be here 10 years from now, probably not even 5 years from now.

Unions are seldom useful, except when they are government workers unions, because everyone thinks the taxpayers have bottomless pockets.


That is just brilliant! We have 8 hour days, 40 hour work weeks, premium pay for overtime, paid time off (vacation) and other benefits and workplace protections because.....of the benevolence of employers. Those useless unions had nothing to do with any of that.

Really, do you think at all before you post some this stuff?
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Postby The Tolerator » Fri Mar 30, 2007 2:35 pm

gargantua wrote:
The Tolerator wrote:If there was a union they probably wouldn't have been willing to make the concessions. They're not Airline pilots making $100K+ and they are not autoworkers making whatever it is they make.

If they had a union they would eventually go the way of GM, which if the downsizing trend continues will lead to it complete collapse.

This is just another signal from CC that they are in trouble and probably won't be here 10 years from now, probably not even 5 years from now.

Unions are seldom useful, except when they are government workers unions, because everyone thinks the taxpayers have bottomless pockets.


That is just brilliant! We have 8 hour days, 40 hour work weeks, premium pay for overtime, paid time off (vacation) and other benefits and workplace protections because.....of the benevolence of employers. Those useless unions had nothing to do with any of that.

Really, do you think at all before you post some this stuff?


Calm down, calm down. I didn't say that unions have always been evil. You're correct on the points about the typical job. My point is that unions have outlived their usefulness. Many of them are so big they don't even care about their individual members.

Consider teacher's unions. They represent people who basically work part-time and have everyone convinced they are underpaid. Members have fully funded healthcare and retirement and for the most part they are fire proof unless they sleep with one of their students. They have substantially better benefits than Joe Citizen. Their unions are really PACs that frequently do not share the same political positions as their members. So what does this union provide? They squeeze the taxpayers every chance they get they bully us by saying, "It's for the kids," everyone falls in line so they don't look like the Burgermeister Meisterburger. Thanks Teacher's Union!
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Postby eriedasch » Mon Apr 02, 2007 12:19 pm

The Tolerator wrote:Members have fully funded healthcare and retirement and for the most part they are fire proof unless they sleep with one of their students. They have substantially better benefits than Joe Citizen. So what does this union provide?

Sounds like they provide a hell of a lot more than those working at Circuit City get.

My vote goes for unionizing.
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Postby aaron » Mon Apr 02, 2007 12:26 pm

Don't know if this is true at every Circuit City, but I always found the store on the west side in Madison to be one of the strangest places I've ever been. It was like walking into some sort of alternate universe. I remember once going in there and there was literally no human being in sight for about the first minute or two. Deathly quiet and...I don't know, just bizarre.

The few salespeople around seemed evasive and not a bit helpful unless directly asked for something, and even then they weren't particularly helpful.

After a few visits, I never went back.

Was mine a typical experience?
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Postby Bwis53 » Mon Apr 02, 2007 12:50 pm

Yes, the one in Mt.Prospect, Randhurst Center, wasn't good either. My guys a real geeks, so I know.
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Postby aaronetc » Mon Apr 02, 2007 1:21 pm

aaron wrote:Was mine a typical experience?


Sounds like every Circuit City I've ever been in, which is probably three or four stores in different cities.
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Postby narcoleptish » Mon Apr 02, 2007 5:33 pm

aaron wrote: there was literally no human being in sight for about the first minute or two. Deathly quiet and...I don't know, just bizarre.


Exactly why I choose circuit city when I go to this kind of store. Same stuff, same prices as best buy, no crowds, no waiting, never out of stuff.......no contest. Unfortunately, the very reason I prefer them is the reason they probably won't be around a lot longer.

Unions.....plenty of good things, plenty of bad things, it's a toss up.
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Postby Henry Vilas » Wed Apr 04, 2007 2:19 pm

The Tolerator wrote:I didn't say that unions have always been evil. You're correct on the points about the typical job. My point is that unions have outlived their usefulness.

So you were for unions in the bad old days, but are against them now. Why the flip-flop? What has fundamentally changed in the relationship between management and labor that negates the need for unions?

The Tolerator wrote:Consider teacher's unions. They represent people who basically work part-time and have everyone convinced they are underpaid.

Prior to teachers' unions, teachers had to individually negotiate their salary (with few, if any, bennies). Even after unions were certified, teacher salaries were extremely low. I made less than 10K a year in my first couple years teaching in Madison (the mid to late 70s). Until the Milwaukee Brewers started claiming unemployment compensation during the off season, teachers also were eligible for u.c. The law was amended after the word got out that professional athletes were collecting.

The term moonlighting came about because so many teachers had to take a second job in the evening (by the light of the moon) to make ends meet.

You might call teachers part-time, but during the summer they are required to take expensive college courses in order to keep their certification. Check out what grad credits at UW go for. Physicians keep their license for life without such a requirement, but if teachers don't return to the classroom, they would soon lose their jobs.

I don't know what you do for a living (but would like to find out), although I guarantee that if you switch places with a teacher for a day, the teacher would be able to muddle through, while you would leave screaming by noon.

Btw, Tolerator, what exactly do you tolerate?
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Postby gargantua » Wed Apr 04, 2007 8:03 pm

The Tolerator wrote:
gargantua wrote:
The Tolerator wrote:If there was a union they probably wouldn't have been willing to make the concessions. They're not Airline pilots making $100K+ and they are not autoworkers making whatever it is they make.

If they had a union they would eventually go the way of GM, which if the downsizing trend continues will lead to it complete collapse.

This is just another signal from CC that they are in trouble and probably won't be here 10 years from now, probably not even 5 years from now.

Unions are seldom useful, except when they are government workers unions, because everyone thinks the taxpayers have bottomless pockets.


That is just brilliant! We have 8 hour days, 40 hour work weeks, premium pay for overtime, paid time off (vacation) and other benefits and workplace protections because.....of the benevolence of employers. Those useless unions had nothing to do with any of that.

Really, do you think at all before you post some this stuff?


Calm down, calm down. I didn't say that unions have always been evil. You're correct on the points about the typical job. My point is that unions have outlived their usefulness. Many of them are so big they don't even care about their individual members.

Consider teacher's unions. They represent people who basically work part-time and have everyone convinced they are underpaid. Members have fully funded healthcare and retirement and for the most part they are fire proof unless they sleep with one of their students. They have substantially better benefits than Joe Citizen. Their unions are really PACs that frequently do not share the same political positions as their members. So what does this union provide? They squeeze the taxpayers every chance they get they bully us by saying, "It's for the kids," everyone falls in line so they don't look like the Burgermeister Meisterburger. Thanks Teacher's Union!


You know, I am aware that you'd never concede this, but I am fully calm. I used to think along the same lines you did. Then I met some real teachers. People who I am privileged to count as friends. And I saw the long extra uncompensated hours. And I would hear how they would give up their lunch periods because a student, usually not a star, would need them to talk to. I saw how much they cared about OUR kids.

I've also seen teachers take more lucrative jobs in the private sector..some of these same people, reluctantly. So, in a way I feel sorry for you. Unfortunately I have to feel a bit sorry for myself too, because unlike you I know what we're losing.

If you're not posturing and are really that ignorant, you are to be pitied, not scorned.
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Postby The Tolerator » Thu Apr 05, 2007 8:50 am

gargantua wrote:
The Tolerator wrote:
gargantua wrote:
The Tolerator wrote:If there was a union they probably wouldn't have been willing to make the concessions. They're not Airline pilots making $100K+ and they are not autoworkers making whatever it is they make.

If they had a union they would eventually go the way of GM, which if the downsizing trend continues will lead to it complete collapse.

This is just another signal from CC that they are in trouble and probably won't be here 10 years from now, probably not even 5 years from now.

Unions are seldom useful, except when they are government workers unions, because everyone thinks the taxpayers have bottomless pockets.


That is just brilliant! We have 8 hour days, 40 hour work weeks, premium pay for overtime, paid time off (vacation) and other benefits and workplace protections because.....of the benevolence of employers. Those useless unions had nothing to do with any of that.

Really, do you think at all before you post some this stuff?


Calm down, calm down. I didn't say that unions have always been evil. You're correct on the points about the typical job. My point is that unions have outlived their usefulness. Many of them are so big they don't even care about their individual members.

Consider teacher's unions. They represent people who basically work part-time and have everyone convinced they are underpaid. Members have fully funded healthcare and retirement and for the most part they are fire proof unless they sleep with one of their students. They have substantially better benefits than Joe Citizen. Their unions are really PACs that frequently do not share the same political positions as their members. So what does this union provide? They squeeze the taxpayers every chance they get they bully us by saying, "It's for the kids," everyone falls in line so they don't look like the Burgermeister Meisterburger. Thanks Teacher's Union!


You know, I am aware that you'd never concede this, but I am fully calm. I used to think along the same lines you did. Then I met some real teachers. People who I am privileged to count as friends. And I saw the long extra uncompensated hours. And I would hear how they would give up their lunch periods because a student, usually not a star, would need them to talk to. I saw how much they cared about OUR kids.

I've also seen teachers take more lucrative jobs in the private sector..some of these same people, reluctantly. So, in a way I feel sorry for you. Unfortunately I have to feel a bit sorry for myself too, because unlike you I know what we're losing.

If you're not posturing and are really that ignorant, you are to be pitied, not scorned.


yeah, cry me a river. You are so priviledge to count teachers as your friends. You are truly fortunate. Well, I have friends that are teachers too. I used to think the same way you do, until I figured out they have above average salaries for part-time jobs. Come one, Summers off is a part-time job. Not to mention Christmas break Spring break their endless numbers of "conferences" that most use as another day off. They have so much time off they have a second job and still not average 40 hours a week in a given year. So they make more than you do. And they don't pay a cent for health coverage or retirement and they are fireproof. This is true of most goverment workers and what do we get? Government quality work. :cry:

I am to be pitied, I don't have any of these things but I pay for them to have them.

Your ignorance is so obvious, you might want to delete that last post altogether.
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