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Laid Off — Circuit City Fires 3,400 Workers

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On Wednesday March 28, Circuit City abruptly fired 3,400 workers. Without warning, these workers were handed termination papers addressed “To Whom it May Concern” and promptly escorted of the premises. Why? They were “overpaid.” The company has said that the workers were being paid “well above the market-based salary range for their role”, the average worker made between $10 and $11 per hour.

The most experienced and highest paid workers were targeted as part of the company’s “wage management initiative.” “It had nothing to do with their skills or whether they were a good worker or not” said company spokesman, Bob Cimino.

Circuit City has said it will allow the fired workers to reapply for their old jobs after 10 weeks, at starting pay. After 10 weeks out of work, these folks will be able to ask for their old job at a pay scale that is probably less than their paltry unemployment.

The harder we work, the richer they get; and if they can get us to work for less, they will. According to company filings, chief executive Phillip Schoonover made $716,346 last year, plus a bonus of $704,700. The day after the firings Circuit City shares went up 2%, I wonder how much he’ll get for that.

For decades corporations have grown in power and arrogance as the labor movement has shrunk in membership and influence. Shrinking with it, are the hopes for a decent standard of living. The expectation that a life of hard work will result in a comfortable retirement is being destroyed.

Today, the median wage is less than it was in 1973, yet productivity in the U.S. has grown by more than 70%. Unionization in the private sector is now only 7.4%, the lowest percentage in the last 50 years.

The union leadership talks a lot about organizing, but class inequality continues to widen as our numbers continue to shrink. We need a serious campaign to unionize the retail sector through worker-to-worker organizing that educates both union and non-union workers about the importance of solidarity.

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