Lower Circuit City Executive's Pay: Shop Somewhere Else

by: Clem Guttata

Fri Mar 30, 2007 at 19:56:41 PM EDT

This week corporate America reached a new low. Circuit City openly announced a plan that most companies would be too embarrassed to admit even thinking of.

Circuit City, has a relatively small presence in West Virginia, with stores in Clarksburg, Charleston and Vienna. By the time you finish reading this diary, you'll be eager to find somewhere else to shop.

This week Circuit City crowed to the world:

The electronics retailer said Wednesday that it plans to cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them.

The electronics retailer plans to cut costs by laying off 8.5 percent of its in-store staff and hiring lower-paid employees to replace them.

Circuit City arbitrarily told the highest paying in-store staff you're out of work. Sorry, folks, you've been here too long. We've given you too many raises. The extended warranty has run out. We're exchanging you for a new, lower cost appliance. It may not work as well, but it'll be cheap!

The only silver lining, if there's one at all, is Circuit City's action is getting some small notice. [Not nearly enough yet... there's been no mention by WVa press that I can find.]

I suggest we all follow technology writer  Russell Shaw's lead and take our business elsewhere:

Updated: See end of extended text for bonus embarrassing Shelley Moore Capito fact.

But giving your most knowledgeable and presumably, your most dedicated workers the heave-ho strikes me as a spit in their eye. They put in years of tireless effort for you, executing policy, turning inventory, acquiring product knowledge and sales skills- and now you kick them in the balls. Or in the case of your, uh "overpaid" female workers.. (sorry, my Mom raised a gentleman).

Sorry, Circuit City, but as someone who comes from blue-collar working stock, I can't abide this decision of yours. I mean you may consider your fat private-equity and institutional shareholders much more important than loyalty, but you are not striking a balance here.

And although I don't consider myself a socialist, I'd rather be accused of that label than be accused of what I am terming your executives to be. Heartless beings in suits.

Infinitely more crudely put, hey Circuit City, f*** you.

With (quite a bit) more decorum, New York Sen. Hillary Clinton  blasts Circuit City, too:

"Twelve dollars an hour is now considered too high a wage in America," Clinton said at a teacher's union conference. "What's really stunning is many of these fired workers had been promoted, they'd been told they were doing a good job."

Circuit City declined to say how much those laid off were paid and how much the new workers would make.

"That is the wrong way to deal with the economic pressures that are facing America," Clinton said. "When I'm president, we're going to get back to creating millions of new jobs."

In a letter to letter to Circuit City chairman and CEO Philip Schoonover, Clinton called the layoffs "inconsistent with the fundamental compact between your company and its employees."

"Maybe he should get laid off and reapply for his job," she told the New Hampshire teachers.

Update: Circuit City doesn't like to pay employees. How about well-compensated politicians? Yep. On October 10, 2002 the Circuit City Stores Political Action Committee gave $1,000.00 to Shelley Moore Capito.

Hey, Rep. Capito, after six years of those Bush tax cuts those Republican economic policies you tout, is this an example of long-term growth helping West Virginians?

Cutting Taxes and Creating Jobs:
I want every West Virginian who is looking for a job to find one. In order to achieve that goal we need to ensure our economy is growing. That is why I have voted for economic stimulus packages in Congress that cut taxes for everyone who pays them. I believe that when the government puts tax dollars back in the pockets of the taxpayers, those taxpayers will spend those dollars and stimulate our economy in order to provide for long-term economic growth in the future.

Yes, all that money consumers spent at Circuit City sure helped... well, it sure helped someone... CEO Philip Schoonover and Rep. Capito, at least?