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The W - Current Events & Politics - Circuit City to lay off 3400 employees
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Since: 12.2.02
From: Cleveland, Ohio

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#1 Posted on | Instant Rating: 4.07
Click Here (signonsandiego.com)

Long story short: they're laying off their highest paid sales staff and allowing them to re-apply for their jobs after 10 weeks at a lower pay.

Wow. If they get away with this and other companies follow, will unions come back with a vengeance?



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It's False
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Since: 20.6.02
From: I am the Tag Team Champions!

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#2 Posted on | Instant Rating: 4.85
The fact that they weren't even left with a pay cut option leaves Circuit City open to a HUGE wrongful termination suit. Someone will definitely sue, severance package or not. This statement could be particularly damning in a court of law:


    This is no reflection on job performance,


(edited by It's False on 29.3.07 0759)



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Since: 9.12.01
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#3 Posted on | Instant Rating: 9.00
    Originally posted by It's False
    The fact that they weren't even left with a pay cut option leaves Circuit City open to a HUGE wrongful termination suit. Someone will definitely sue, severance package or not. This statement could be particularly damning in a court of law:


      This is no reflection on job performance,


    (edited by It's False on 29.3.07 0759)
Although I'm sure people will TRY to sue, this sounds more like a perfectly plausible "at-will" scenario and I'd be surprised to see Circuit City get into any significant legal trouble. Of course, their trial in the court of public opinion stands to me a lot more brutal.



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Since: 2.1.02
From: The Las Vegas of Canada

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#4 Posted on | Instant Rating: 5.16
    Originally posted by CRZ
      Originally posted by It's False
      The fact that they weren't even left with a pay cut option leaves Circuit City open to a HUGE wrongful termination suit. Someone will definitely sue, severance package or not. This statement could be particularly damning in a court of law:


        This is no reflection on job performance,


      (edited by It's False on 29.3.07 0759)
    Although I'm sure people will TRY to sue, this sounds more like a perfectly plausible "at-will" scenario and I'd be surprised to see Circuit City get into any significant legal trouble. Of course, their trial in the court of public opinion stands to me a lot more brutal.

Honestly, I can't imagine too many people remembering it three weeks after it happens. Certainly not well enough that if CC puts out a good deal on a laptop that it would drive prospective buyers to Best Buy or something like that. I'm sure they'll get slagged in the media for a little while but I just don't think there's much of a sentiment to be outraged about these sorts of things. People will say "wow, that sucks" but as long as it doesn't impact their job it's nothing more than a passing thought.



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Since: 7.2.02
From: Huntington, NY

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#5 Posted on | Instant Rating: 5.68
    Originally posted by spf
    Honestly, I can't imagine too many people remembering it three weeks after it happens.


Nobody remembers when, back in 2003, they dropped commission and then laid off their top sales staff. CC sales dropped then as a result, so clearly this is not CC looking to the long-term.

All they're trying to do is look good on paper.

(edited by Leroy on 29.3.07 1014)

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Since: 8.10.03
From: flyover country

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#6 Posted on | Instant Rating: 8.37
Please don't shoot me and this isn't meant to inflame passions but there were pertinent reasons came into being and the systematic destruction of organized labor over the last 27 years has resulted in open season on workers.

Yes I abhor bloated, self-serving union organizations that were crooked and greedy but labor needs a voice and needs protection. Personally, as long as the prices are right, the public won't even need three weeks to forget.



Perception is reality
PeterStork
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Since: 25.1.02
From: Chicagoland with Hoosiers, or "The Region"

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#7 Posted on | Instant Rating: 6.72
Hi!

1 of 3400 here.

I was quitting in two months anyway to move away with the new bride, but not everyone is in the nice position I was.

Morale is in the crapper. Several managers at my store are thinking of quitting, and they'll probably lose a couple more salesmen to Best Buy this week.

The media's eating this one alive, and for the right reason: their customer service will now sink to the level of Wal-Mart's. When you literally say "if you do your job well, we won't pay you more, or else we'll have to fire you," why would anyone try their hardest?



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Since: 2.1.02
From: The Silver Spring in the Land of Mary.

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#8 Posted on | Instant Rating: 4.05
Here are some intersting posts from DCRTV.com's site. First one is a blurb from the site owner, second one is from a former employee. I agree with Dave's point about BB. I only got my 61" DLP from them because I couldn't wait for the delivery from crutchfield.com and it JUST fit in the back of my SUV.

---

By Dave Hughes dcrtv@dcrtv.com

3/29 - When I do get around to buying that big-screen high-def TV, I definitely won't be buying it at Circuit City. It fired sales workers making less than $12 an hour, calling them "overpaid," while its CEO rakes in millions in salary, bonuses, and stock awards. According to today's Washington Post, the Richmond-based electronics retailer fired 3,400 employees in stores across the country yesterday, saying they were making too much money and would be replaced by new hires willing to work for less. The company gave the dismissed workers severance pay and told them that after 10 weeks they were free to apply for any openings. Employees reached by a reporter said they were notified yesterday morning and told to leave immediately. Steven Rash, 24, said he was one of 11 workers fired at a Circuit City in Asheville, NC. He said he earned $11.59 an hour and worked from 15 to 20 hours a week. He received four weeks of severance pay. Meanwhile, Circuit City chief executive Philip Schoonover received a salary of $716,346, along with a $704,700 bonus last year. He also has long-term compensation of $3 million in stock awards and $340,000 in underlying options, according to company filings. Hey Phil, just try to live on a wage of less than $12 an hour, you cheap bastard.....


-----------

I too worked at a Circuit City many years ago. The sales people then were paid by "spiff", a commission based upon margin and availability. If the product had good margin and lots of stock, then the spiff was high, otherwise the spiff was low. Sony televisions had the worst spiff - as low as 75 cents on a $500 unit - JVC then had the best spiff - a similar $500 tv would pay $15 or more. Right before the re branded themselves a few years ago, they ran a report and found their top 20% salespeople - and fired them as a cost cutting measure. Further layoffs followed soon after. The fired people knew how to use the spiff to their advantage! Maybe that was why Bait and Switch was always mentioned - though when I worked their if a customer came in and asked about the advertised product you were required to show it to them and offer to sell it to them even though the spiff was probably pathetic on that piece. Oh - at least back then the commission was 20-33% of the Extended Warranty sale. The manager loved or hated you based solely on whether you could sell that piece of crap. Oh there super secret spiff code was in the order screen on the computer. The column said something like "stock". H meant 50 cents, Q meant a quarter, and whole numbers were themselves, and reversing the next two numbers gave you the margin. So if the stock column read 4Q02 that meant 20% margin and $4.25 spiff. I will not buy from them either. (3/29/07)



-- 2006 Time magazine Person of the Year --

DrDirt
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Since: 8.10.03
From: flyover country

Since last post: 3 days
Last activity: 1 day
#9 Posted on | Instant Rating: 8.37
    Originally posted by PeterStork
    Hi!

    The media's eating this one alive, and for the right reason: their customer service will now sink to the level of Wal-Mart's. When you literally say "if you do your job well, we won't pay you more, or else we'll have to fire you," why would anyone try their hardest?


Well said but who is the world's largest retailer. Most people don't expect service anymore. People want the cheapest prices and confuse that with value. Also, no matter what your politics are, most people are getting by through looking for cheap, especially families. The Henry Ford idea of paying well so your employees buy stuff and live well are gone.



Perception is reality
PeterStork
Sujuk








Since: 25.1.02
From: Chicagoland with Hoosiers, or "The Region"

Since last post: 613 days
Last activity: 1 day
#10 Posted on | Instant Rating: 6.72
    Originally posted by DrDirt
      Originally posted by PeterStork
      Hi!

      The media's eating this one alive, and for the right reason: their customer service will now sink to the level of Wal-Mart's. When you literally say "if you do your job well, we won't pay you more, or else we'll have to fire you," why would anyone try their hardest?


    Well said but who is the world's largest retailer. Most people don't expect service anymore. People want the cheapest prices and confuse that with value. Also, no matter what your politics are, most people are getting by through looking for cheap, especially families. The Henry Ford idea of paying well so your employees buy stuff and live well are gone.


The difference between places like WM and BBY and CC though is that the latter two can't compete on just selling a product. Wal-Mart doesn't need service because they sell in bulk; margin is low but when you move enough goods at a low cost you make money.

Neither Best Buy or Circuit can do this. They HAVE to have good salesmen and service so that when people come in for a cheap laptop or LCD they walk out with the product, service plan, cables, installation services, etc. Otherwise BBY and CC go out of business. Wal-Mart doesn't need that level of help.



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Oliver
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Since: 20.6.02
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#11 Posted on | Instant Rating: 4.35
There's a great article about the decision to sell "The Source by Circuit City" stores here in Canada HERE) (globeandmail.com). In fact, discussion at a local store suggests that they may just shut the entire chain down if they don't a buyer within the next six months.



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Since: 12.1.02
From: Indianapolis, IN; now residing in Suffolk, VA

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#12 Posted on | Instant Rating: 2.29
Add Circuit City (along with 2006's continuing New Year's Resolution, Wal-Mart) to the list of stores I'm not going to do business with in the future. (Not that I've walked into a Circuit City in quite some time, but now when I want that new laptop, I'm going to Best Buy.)



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Since: 8.10.03
From: flyover country

Since last post: 3 days
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#13 Posted on | Instant Rating: 8.37
    Originally posted by PeterStork
      Originally posted by DrDirt
        Originally posted by PeterStork
        Hi!

        The media's eating this one alive, and for the right reason: their customer service will now sink to the level of Wal-Mart's. When you literally say "if you do your job well, we won't pay you more, or else we'll have to fire you," why would anyone try their hardest?


      Well said but who is the world's largest retailer. Most people don't expect service anymore. People want the cheapest prices and confuse that with value. Also, no matter what your politics are, most people are getting by through looking for cheap, especially families. The Henry Ford idea of paying well so your employees buy stuff and live well are gone.


    The difference between places like WM and BBY and CC though is that the latter two can't compete on just selling a product. Wal-Mart doesn't need service because they sell in bulk; margin is low but when you move enough goods at a low cost you make money.

    Neither Best Buy or Circuit can do this. They HAVE to have good salesmen and service so that when people come in for a cheap laptop or LCD they walk out with the product, service plan, cables, installation services, etc. Otherwise BBY and CC go out of business. Wal-Mart doesn't need that level of help.


Except that the Walmarts are branching out more and more into that area. At our Walmarts out here you can buy the stuff you buy at the place with service. Is the selection as good? No. Is the service there? No. But more and more people are making those kinds of purchases at Walmart and online.



Perception is reality
PeterStork
Sujuk








Since: 25.1.02
From: Chicagoland with Hoosiers, or "The Region"

Since last post: 613 days
Last activity: 1 day
#14 Posted on | Instant Rating: 6.72
    Originally posted by DrDirt
      Originally posted by PeterStork
        Originally posted by DrDirt
          Originally posted by PeterStork
          Hi!

          The media's eating this one alive, and for the right reason: their customer service will now sink to the level of Wal-Mart's. When you literally say "if you do your job well, we won't pay you more, or else we'll have to fire you," why would anyone try their hardest?


        Well said but who is the world's largest retailer. Most people don't expect service anymore. People want the cheapest prices and confuse that with value. Also, no matter what your politics are, most people are getting by through looking for cheap, especially families. The Henry Ford idea of paying well so your employees buy stuff and live well are gone.


      The difference between places like WM and BBY and CC though is that the latter two can't compete on just selling a product. Wal-Mart doesn't need service because they sell in bulk; margin is low but when you move enough goods at a low cost you make money.

      Neither Best Buy or Circuit can do this. They HAVE to have good salesmen and service so that when people come in for a cheap laptop or LCD they walk out with the product, service plan, cables, installation services, etc. Otherwise BBY and CC go out of business. Wal-Mart doesn't need that level of help.


    Except that the Walmarts are branching out more and more into that area. At our Walmarts out here you can buy the stuff you buy at the place with service. Is the selection as good? No. Is the service there? No. But more and more people are making those kinds of purchases at Walmart and online.


Which just affirms my point that CC and BBY need the best service-oriented staff they can get since it's the only way they can make money. They can't beat WM on volume; they have to attach.



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It sure looks that way. http://www.foxnews.com/health/2013/03/27/scientists-find-treatment-to-kill-every-kind-cancer-tumor/?intcmp=trending There's a little more info on the NY Post website that the foxnews story links to.
- Stefonics, No More Cancer? (2013)
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