Circuit City replacing 3,400 employees who earn too much?
http://www.nyjournalnews.com/apps/pbcs.dll/article?AID=/20070329/BUSINESS01/703290361/1066
By DAVID SCHEPP
THE JOURNAL NEWS
(Original publication: March 29, 2007)
Circuit City Stores Inc. cut 3,400 sales employees and plans to replace them with newly hired employees who will earn lower, "current market" wages.
The move, announced yesterday, is part of a number of actions the electronics retailer is taking to cut costs to stay viable in a marketplace where more cost-efficient retailers have begun selling items, such as flat-screen televisions, that Circuit City specializes in.
Employees who lost their jobs yesterday "were paid well above the market-based salary range for their role," Circuit City said in announcing the cuts.
Circuit City employs about 50 full- and part-time associates at each location, "including sales support personnel, such as customer service associates, product specialists and stockpersons; three sales managers; an operations manager; and a store director," according to a regulatory filing.
The company operates more than 650 retail outlets in the United States, including four lower Hudson Valley locations in White Plains, Yonkers, West Nyack and Cortlandt, where 13 workers were fired, according to Circuit City spokesman Bill Cimino.
In the seven-county Hudson Valley region, retail salespeople earn a median salary of $21,450 a year. But Cimino said the criteria Circuit City used for determining the cuts also looked at wages for similar jobs within the market.
Cimino said that if any of those workers wanted to reapply for those jobs at the new lower wage they would be eligible to do so, "but after a period of time." Employees have been given severance and wouldn’t be eligible to reapply for about two months, he said. The severance amounts were dependent upon several factors including length of time employed, Cimino said.
In addition to the 3,400 sales employees, Circuit City said it eliminated 130 corporate associates, 50 of whom will transition to jobs at IBM Corp. but will remain on-site. The job reassignments are part of a $775 million pact that Circuit City estimates will trim more than 16 percent from its costs during the length of the seven-year contract.
More evidence of illegals driving down wages, what do you think?
Drew – I doubt it if illegals are going to take the sales jobs, but they definitely have had an impact on lowering wages. I see this as a ripple effect.
Giselita – You are exactly right on both their stupidity, and the blame. If illegals don’t want to be blamed for destroying our economy, they should GO HOME. *condescending smile*
I’m not sure illegals have anything to do with this one. I hope they are not replacing salesmen with illegals. I have enough problems shopping in LA, I don’t need to hassle with people who barely understand English when I buy a T.V..
I am mad though at corporations. Our country has grown tremendously, but our pay has not keep up with inflation. I do believe that there are people who are trying to make illegals a new underclass, and to help mantain a low pay in America. I don’t blame the immigrants as much as the companies.
Bushonomics at its finest!
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I think the company should lay off even more people. Wal-Mart employees are better educated.
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Hey, it is EXACTLY how people in the USA want to be treated these days. they keep electing the same DA&* politicians and NEO-TARDS that make laws or don’t enforce laws that allow stuff like this to happen. American people seem as if the WANT their country to go into a downward none ending spiral or at least that is how it appears from their actions. For the past 30 years the republicans have pretty much been in charge of one or more branches of the government and today we have companies and corporations that do whatever they want with NO THOUGHT of anyone making a law or passing a law to stop them. People in this country are getting exactly what they have sewn the for the past 30 years.
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They just keep pushing their finger in the eye of working class Americans. The breaking point is near, get ready.
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http://youtube.com/watch?v=KB6dB5TrHcM
1 word:Boycott
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"Employees who lost their jobs yesterday "were paid well above the market-based salary range for their role," Circuit City said in announcing the cuts."
Funny, since Circuit City were the ones to approve the raises for the employees in the first palace.
This is completely pathetic. Why could Circuit city just lowered their pay if they really needed the additional money. Some of those people needed those jobs, and some money would have been better than no money. This is a slap in the face to people who are good at their jobs.
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It sounds to me like they are trying to avoid an impending bankruptcy. Its really simple – if we consumers suspect a chain is hiring illegal aliens – just boycott them.
I haven’t been in a Walmart in over a year now, since two stores in my area (total of 300+ workers) were busted for hiring illegals. No, what I spend won’t break them, but if 1000 people did it, it would make a difference.
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Please explain to me how a US automaker paying $50/hr. for labor can compete with a Japanese competitor whose workers make half as much and enjoy universal healthcare?
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I’m not sure illegals have anything to do with this one. I hope they are not replacing salesmen with illegals. I have enough problems shopping in LA, I don’t need to hassle with people who barely understand English when I buy a T.V..
I am mad though at corporations. Our country has grown tremendously, but our pay has not keep up with inflation. I do believe that there are people who are trying to make illegals a new underclass, and to help mantain a low pay in America. I don’t blame the immigrants as much as the companies.
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I say SC REW Circuit City, and ALL the businesses that hire illegals, or take their businesses OUT of this country!!
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let me guess where this is going……you can’t blame illegals directly because we all know that "illegals are too stupid" to maintain sales jobs right?? but we can blame illegals for the dissappeareance of middle class america right??? ultimately it’s always THE ILLEGALS’ FAULT!!!!!!!…. *laughs sarcastically*
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that’s what happens when we vote for people who think in terms of $ and let corporations do what the fcuk they want,
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Remember when wages used to go UP?
I agree this is another piece of the globalist puzzle.
And noils 2, until they moved their factories to other countries they did fine, because WE bought American. We lose their loyalty, they lose ours.
Also, I’m in favor of trade barriers. Free trade is too rapacious when you are talking about multinational corporations with no particular loyalty to American workers.
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is that not illegal? they should not be able to get away with that, it’s just not right.
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