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Solve : I thought I "hated" Best buy BUT...........? |
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Answer» Circuit City: You're fired, but reapply for less pay Electronics giant targets 3,400 higher-paid employees in layoffs Associated Press NEW YORK -- Circuit City ANNOUNCED layoffs aimed squarely at better-paid workers, implying that wages are as subject to discounts as flat-screen TVs. The electronics retailer said Wednesday it will lay off about 3,400 store workers immediately and replace them with lower-paid new hires as soon as possible. The laid-off workers, about 8 percent of the company's total work force, will get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said. Analysts and economists said the MOVE is an UNCERTAIN experiment that could backfire for the chain. The risks: Morale could sink and CUSTOMERS could avoid the stores. Also, knowledgeable customer service is one of the few ways Circuit City can tackle competitors that include Wal-Mart, they say. "This strategy strikes me as being quite cold," said Bernard Baumohl, executive director of The Economic Outlook Group. "I don't think it's in the best interest of Circuit City as a whole." While other companies, such as Caterpillar, have introduced two-tiered wage systems, where newer workers make less, firing workers and offering to rehire them at a lower wage is rare. Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy, SAYS the workers being laid off were earning "well above the market-based salary range for their role." ** And you wonder what fuels the Illegal immigrant issue? ** http://www.indystar.com/apps/pbcs.dll/article?AID=/20070329/BUSINESS/703290413/1003/BUSINESSI used to work for CC as a bench tech. This kind of stuff doesn't surprise me at all. I'll bet the CEO didn't take a cut in pay. Alan <>< |
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