So much for loyalty
Retail giant Circuit City is rewarding its most loyal workers by laying them off.
In a move to cut costs, the company is openly and blatantly firing workers with higher wages and replacing them with lower wage employees. Makes sense on paper. But who is going to want to work for a company that offers that type of opportunity for advancement?
While their move certainly makes sense to their accountants, it probably won't work out the way they think it will.
I, for one, won't be taking any business to Circuit City in the near future. Maybe this will inspire them to organize their work force so this won't happen again.
In a move to cut costs, the company is openly and blatantly firing workers with higher wages and replacing them with lower wage employees. Makes sense on paper. But who is going to want to work for a company that offers that type of opportunity for advancement?
While their move certainly makes sense to their accountants, it probably won't work out the way they think it will.
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 Stores Inc., 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."
I, for one, won't be taking any business to Circuit City in the near future. Maybe this will inspire them to organize their work force so this won't happen again.
Labels: labor, Social Justice
