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    Default Hey WalMart haters

    Did you read this? If WalMart tried this, there would be congressional hearings.
    Mar 28, 10:28 AM EDT


    Circuit City to Cut More Than 3,500 Jobs

    By ZINIE CHEN SAMPSON
    Associated Press Writer

    RICHMOND, Va. (AP) -- Circuit City Stores Inc. said Wednesday it plans to cut costs by laying off about 3,400 store workers and hiring lower-paid employees to replace them, and by trimming about 130 corporate jobs.

    Its shares rose 3 percent in morning trading.

    Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, the company said in a news release.

    "We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," Philip J. Schoonover, Circuit City's chief executive, said in a statement.

    The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines Corp., a move that is expected to cut IT expenses by more than 16 percent. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.

    The changes follow the company's announcement this winter of planned cost-cutting measures and management moves to improve sales and cut expenses.

    In February, Circuit City terminated its lease on a previously closed distribution center in Columbus, Ohio, at a loss of $4.8 million, but the move is expected to cut costs associated with the lease by about $6 million. It also finished a previously announced closing of a Louisville, Ky., distribution center that was used primarily for store fixtures and signs.

    In Circuit City's international operations, the company has hired Goldman Sachs to advise the company on strategic options for its InterTAN Inc. unit, which could include selling the business.

    Circuit City closed about 55 stores in Canada in February as previously announced, and expects to close about 10 more stores in the first half of fiscal 2008.

    Its shares rose 59 cents to $19.47 in morning trading on the New York Stock Exchange.

    2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.


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    Maybe I am truly out to lunch, but isnt that sort of thing illegal? To fire someone and then fill his/her position with a lower wage person is illegal, isn't it?
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    Happens all the time.Work your way to the top of the payscale and then let go so they can hire a lower paid employee to save costs.
    Never mind that you know what widget goes into which gaunculator and the customers are happy with how fast you take care of them.
    They want a happy bottom line instead of happy employees.

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    Quote Originally Posted by MalahatTwo7 View Post
    Maybe I am truly out to lunch, but isnt that sort of thing illegal? To fire someone and then fill his/her position with a lower wage person is illegal, isn't it?

    It is in Canada, and I am surprised it's not in the US too.

    There are always ways around it for individual cases, but you could not fire off your entire staff and then replace them without just cause. An illegal strike "might" be enough in some cases, but simple wage parity is certainly not.


    I hope those employees have justification for a class-action lawsuit.
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    I am willing to bet that we have not heard the last of this. The employees will probably raise hell and catch the local senators attention since election campaigns are starting up.

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    That's life in the corporate world... meanwhile back in the boardroom of the company, the Board of Directors is giving the HMFIC, COO, CFO, and a host of other VP's an high level muckymucks bonuses...
    ‎"The education of a firefighter and the continued education of a firefighter is what makes "real" firefighters. Continuous skill development is the core of progressive firefighting. We learn by doing and doing it again and again, both on the training ground and the fireground."
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    Nothing new here, its' been going on for some time now and like the Gonz says the bonuses at the top just keep flowing. The lesser paid people will now not be able to answer questions or provide any real service to the customer base and it will be press 1 for English, 2 for Spanish, 3 for India etc. and we have changed our menu so listen carefully.

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    Thanks Marty. I was pretty sure it was that way for us, and like you surprised its not the same down here too. Oh well, I guess.
    If you don't do it RIGHT today, when will you have time to do it over? (Hall of Fame basketball player/coach John Wooden)

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    George,

    As a self proclaimed SatanMart hater (WalMart to the unenlightened) I am proud to also claim that I do not and have nto patronized Circuit City ever. I went in there one time when they opened their super store in madison and was subjected to a salesman who knew less about his product than I did who proceeded to get snotty with me when I was clear to him he was wrong in what he was saying. Talked to a manager and got more of the same and said F*** it and left. Went over to my local retailer and got excellent service and a good price too.

    On to the topic at hand...This is the problem with the United States today. Absolutely no conscience of any kind is left in the corporate world. Employees are nothing more than an expendable number in the corporate calculator. Is it any wonder why there is little loyalty or pride left in many employees anymore? Why be loyal? Why be dedicated? Why display pride in your work? Why give more than you absolutely have to? In the end none of that matters if your cost are more than the corporation determines you are worth. In my mind this is morally criminal if it is not legally criminal.

    The other side of the coin is consumers in our great nation are little more than mindless cattle. Save a buck or 10 or 3 cents for that matter never looking at the effect beyond your small corner of the world. I have seen this personally more than once where the small town store, whether grocery or clothing or hardware was passed by, over and over, as the throngs rush to save money at the next corporate mega-mart. Oddly enough the towns folk wonder what happened to the financial support for school sports, or the 4th of July parade or the library or the local volly FD or whatever, when those small businesses closed. SatanMart has become smart enough to realize this and dole out money to SELECTED local agencies. Not quite what was there before but enough to quiet the masses.

    I know what you are all thinking he is a small town wacko living in the past. Fine think whatever you wish. I shop locally with small businesses whenever possible. I have made a conscious decision to keep my money from going to WalMart and now I am even happier that I have never given any to Circuit City.

    FyredUp

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    George,

    Circuit City is in bad shape, They have been closing stores laying off folks now for several years. I expect to see them fold one day soon.

    Friends I know who works in the HQ here for them says it really bad.
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    Default Wal-Marx

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    Quote Originally Posted by FyredUp View Post
    George,

    As a self proclaimed SatanMart hater (WalMart to the unenlightened) I am proud to also claim that I do not and have nto patronized Circuit City ever. I went in there one time when they opened their super store in madison and was subjected to a salesman who knew less about his product than I did who proceeded to get snotty with me when I was clear to him he was wrong in what he was saying. Talked to a manager and got more of the same and said F*** it and left. Went over to my local retailer and got excellent service and a good price too.

    On to the topic at hand...This is the problem with the United States today. Absolutely no conscience of any kind is left in the corporate world. Employees are nothing more than an expendable number in the corporate calculator. Is it any wonder why there is little loyalty or pride left in many employees anymore? Why be loyal? Why be dedicated? Why display pride in your work? Why give more than you absolutely have to? In the end none of that matters if your cost are more than the corporation determines you are worth. In my mind this is morally criminal if it is not legally criminal.

    The other side of the coin is consumers in our great nation are little more than mindless cattle. Save a buck or 10 or 3 cents for that matter never looking at the effect beyond your small corner of the world. I have seen this personally more than once where the small town store, whether grocery or clothing or hardware was passed by, over and over, as the throngs rush to save money at the next corporate mega-mart. Oddly enough the towns folk wonder what happened to the financial support for school sports, or the 4th of July parade or the library or the local volly FD or whatever, when those small businesses closed. SatanMart has become smart enough to realize this and dole out money to SELECTED local agencies. Not quite what was there before but enough to quiet the masses.

    I know what you are all thinking he is a small town wacko living in the past. Fine think whatever you wish. I shop locally with small businesses whenever possible. I have made a conscious decision to keep my money from going to WalMart and now I am even happier that I have never given any to Circuit City.

    FyredUp
    I understand and appreciate your position. Too bad that once you start referring to it as "SatanMart", you lose all credibility. Talk about mind numbed robots.

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    Well, that's what we as a society get when we elect people who LOVE to regulate personal, individual "morality" but throw their hands up in the air and scream "'free' market" when corporate morality/justice is abridged publically and egregiously.

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    Quote Originally Posted by CaptOldTimer View Post
    George,

    Circuit City is in bad shape, They have been closing stores laying off folks now for several years. I expect to see them fold one day soon.

    Friends I know who works in the HQ here for them says it really bad.
    Electronics is a dicey commodity. The margin is so slim and the overhead so high, it is a simple matter to run a business into the ground. Happened to a bunch of these retailers around here, most notably Nobody Beats the Wiz.

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    Quote Originally Posted by GeorgeWendtCFI View Post
    I understand and appreciate your position. Too bad that once you start referring to it as "SatanMart", you lose all credibility. Talk about mind numbed robots.
    George, George, George,

    You are an angry man aren't you? Frankly I don't care if you find me credible or not.

    Sorry my reference to WalMart as SATANMart causes you to believe I am a mind numbed robot. I suppose the rest of what I wrote was mindless droning too then. George, once again I find that perhaps you are one of the most pompous asses I have ever met.

    Have a nice life...must be great to be the emperor of perfect.

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    no conscience of any kind is left in the corporate world.
    Honest question: Who should the business be looking out for? It's stockholders or the employees? I always thought the idea of a business and it's goal was to make money for it's stockholders.

    While I think what they are doing sucks, I don't know I'd say they have no conscience.
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    Bones42:

    Honest question: Who should the business be looking out for? It's stockholders or the employees? I always thought the idea of a business and it's goal was to make money for it's stockholders.

    While I think what they are doing sucks, I don't know I'd say they have no conscience.
    To me the question of conscience is crystal clear. But hey let's move it into the fire service. Joe Smith has been with the Corporate Fire Deprtment for 20years and is making top pay of let's say $70K as an MPO. Billy Jones has been with the FD 6 years and just passed the MPO test, since he has only been here 6 years he is only making $45K. Now he is qualified to do Joe's job and really why not lay off Joe and save $25K a year? Okay, now you may say this is different, but is it really? Isn't the city's job to get you the most services for the least in taxes? Is it right? Fiscally, of course, morally it is outrageous. But no more outrageous than a corporation letting 3500 people go because they pay them too much.

    Conscience clearly is lacking and no one will convince me otherwise. I hope there is a special place in Hell for these corporate jerk offs who do this.

    FyredUp

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    Quote Originally Posted by mcaldwell View Post
    but you could not fire off your entire staff and then replace them without just cause.
    Sure you can -- happens all the time. "Sorry, but your job position is being phased out so you're being laid off. BTW, we've created some new (marginally different) job positions that you're more than welcome to apply for. Of course, the new positions don't pay as well."
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    Quote Originally Posted by FyredUp View Post
    Okay, now you may say this is different, but is it really?
    Congratulations! You've just identified why it's better to work under contract in a union CBA than without one! Once you enter a CBA with an employer it becomes a lot more difficult for that employer to play games with your job.
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    You have to remember that every big business started out as a small one. It is when the big industries start moving to other countries that the American job pool really starts to suffer. I have a really big problem with that. Big businesses like Wal-mart really don't need defending. It is the smaller ones who are just starting out who deserve tax breaks that even the playing field and make the game more interesting.

    The Wal-Marx poster is funny, but Wal-Mart/Microsoft/McIntosh/BigBusinessCo. are the unfortunate byproduct of free-market capitalism, more so than communism.

    However, there isn't any justification for firing employees to hire new ones at low starting wages (this is a bad business decision, in any case, because in the long run, the low service quality and slightly higher cost of training so many new employees will out weigh the cost of having experience of former employees with a knowledge of skills learned on-the-job). Circuit City's decision is a last ditch effort to save a company that has already lost to bigger, less specialized companies like Best Buy (There is a Circuit City about 30 miles from where I live, in a bad economic location far from the interstates, and at any given time during open hours, there are only about 6 cars in the parking lot).
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    Quote Originally Posted by GeorgeWendtCFI View Post
    I understand and appreciate your position. Too bad that once you start referring to it as "SatanMart", you lose all credibility. Talk about mind numbed robots.
    George, I understand and appreciate your position. Too bad that once you start your thread with the subject "Hey WalMart haters", you lose all credibility. It reminds me of what elementary school kids will do to start a fight in the hallway.

    And why the h*ll would your post make me like WalMart any more - it only makes me dislike Circuit City even more. WalMart, Circuit City, Home Depot - I don't care who they are - I hate them all. Sure, some are much better/worse than others, but for the most part, they all su*k.

    I may not agree with FyredUp about colored blocks, but we agree here for sure.

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    My gut instincts lead me to the conclusion that corporate America is just following the lead of those leading the country. Graft, lies, above the law attitude, take what you can get and so on and **** on the people. There is also plenty of people to pick from the available labor pool so why worry about firing someone and replacing them with cheaper labor and of course move operations into other countries where the laws don't mean anything. Greed, corruption and a total lack of ethics are in full swing. I understand economics but at what price? I think that there were good old days but they are long gone and at the pace things are moving there are going to be a lot of bodies littered along the way. Just another two cents worth.

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    It's consumerism, not capitalism.

    When George Bush admonishes the Chinese that they need to spend more and save less, Adam Smith was spinning in his grave.

    Capitalism, at it's heart, is about making wise investments that improve the quality of life. That can often mean forgoing short term enjoyment for long term stability and growth.

    Consumerism is caught up on a cycle of how fast money can be made to move -- out of someone's pocket and into another. It's it at the heart of stocks that rise-and-fall on quarterly announcements (people trying to make money on stock sales commissions...), it's at the heart of predatory lending practices.

    There's a reason stuff we use and through out go are called "consumables" and go on the expense budget, but investments are called "capital."

    Large segments of our economy today however are oriented to consumption -- everything about them is disposable and not aimed at long term, strategic goals but how you can make a profit financing all this cash flying around buying stuff that really doesn't add any value to life other then a momentary pleasure.

    Sure, none of use want to live like austere monks (except, austere monks ). It's nice to buy toys now and then. But honestly, you look around at how much is being bought, and you realize people are giving up a lot later in life for a hell of a lot of nice toys today.

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    Quote Originally Posted by Bones42 View Post
    Honest question: Who should the business be looking out for? It's stockholders or the employees? I always thought the idea of a business and it's goal was to make money for it's stockholders.

    While I think what they are doing sucks, I don't know I'd say they have no conscience.


    IMO...that truly is the problem with society today. At some point in time, someone said "What is best for ME", instead of "What is best for WE"

    Point is, years ago companies and corporations did look out for their employees, gave good pay, good benefits, and a reason to retire. Workers formed unions to protect those benefits and to look out for the collective good for all. At some point, it became look out for #1. We can make more $$ if we do this, or cut that. People bought into that, if I work harder I can get ahead, I can make more and looked down at looking out for each other.

    So what happened, companies looked at the putting more coin in their pocket, no matter who it hurt. So you saw outsourcing and jobs go overseas, unions being abolished, benefits being cut. You can look at these corporate attitudes for the reason for illegal immigration. How many workers are brought in to work for minimum or less wage and no benefits. They won't complain, probablly the most money they see. Yet we pay for their housing and healthcare, whereas these companies are putting more coin in their pocket and let the American society take care of their labor force.

    Ok..didn't mean for this to be an immigration issue, although there are many U.S. citizens with no benefits because of the corporate attitude, and we pay for their labor force. Point is, who are businesses looking out for?...#1 stockholders and CEO. Who should they look out for?...The American worker.

    Maybe we should measure the strength of the economy on good jobs and unemployment rates instead of how the stock market is doing.

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    Quote Originally Posted by DeputyMarshal View Post
    Sure you can -- happens all the time. "Sorry, but your job position is being phased out so you're being laid off. BTW, we've created some new (marginally different) job positions that you're more than welcome to apply for. Of course, the new positions don't pay as well."

    Comcast Cable did that to my Daughter. 30 years in the Cable Industry, Big institutional knowledge of the business, couple of her co-workers said she was the only one who knew how all the parts fit. BUT, She made it to the upper ranks, then in a cost cutting spree, lost it all because she could be replaced by TWO other people. Who COMBINED, made less than she did. She's relaxing at home, enjoying the life of a full time mom, and NOT returning calls from her former Boss who can't get near the work out of the TWO people........
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