It's up to you

So, it's all over the news about Circuit City's firing of 9 percent of its workforce. This has potentially huge effects for all employees and can be affected by all consumers.

First, the employees. Most people work for employers that are "at will" employers meaning that anyone can be hired or fired by the company whenever it desires. Most reputable companies, however, have systems in place that give employees warning, time to improve, etc. Therefore, most employees know that "it's coming" (unless you work for someone like Enron who just folds overnight). This is the way it should be.

Even non-union employees and employers enter a contract. The employee agrees to work to company standard (or above) for the wage and benefits that the company offers.....basic free market. Time and energy is invested on both side to their mutual benefit. This investment is the protection that one side or the other won't just walk away from the contract. Circuit City has violated that contract.

Many companies have financial issues and overpaid workers. Most companies work to reduce their labor costs by attritioning out those that are paid more than they are contributing. It happens every day and sometimes it even makes the papers (buyouts by auto and airline industries to name a few). That is the proper way to approach that because it allows for security and stability in the workforce. It keeps the contract in force by providing mutual respect.

Circuit City's action will now become the rallying cry for retail unions across the country which would be BAD for everyone. Widespread unionization of retail will result in higher costs and lower service (in some cases that seems hardly possible...but watch!) across the board. This is a VERY bad move which should be condemned by all rational people and retailers immediately.

Now, to the second point. You, the consumer, have a huge ability to let your opinion be known. YOU determine the fate of Circuit City. You can choose to tell Circuit City it's ok to let someone go without notice even though they've worked for the company for 12 years, their mortgage payments and family bills rely on that paycheck, and their skill set probably justified over $18 an hour. You tell them it's ok to treat people like that when your foot crosses the threshold of any Circuit City store or your mouse clicks on their website. Whether you are making a $5000 purchase of a plasma tv or a $1.99 purchase of a phone jack, you are saying that it's ok to let these people go!!!

I suspect that if enough people stop going to Circuit City, they will be gone quickly. You don't just eliminate 9% of your workforce over $.50 an hour unless you need to stop spending cash immediately. They are in trouble and if enough people say, THAT'S NOT RIGHT, they will be gone and serve as an example to other businesses of how not to treat employees. Your action here will help (or hurt) more hourly employees than any raise in the minimum wage can ever do. I've eliminated Circuit City as an advertiser on this blog and will drive past them to go to a Best Buy. That is my response. And yours? (Please let us know how you've responded.)

Thoughts anyone?