Circut City replaced 3,400 workers with new lower-paid employees in order to compete with Wal-Mart and other retailers who are driving the poverty-line pay trends that pass for "current market wages". Circuit City feels it needs to emulate Wal-Mart's terrible pay to remain competitive.
According to the NY Journal News:
In the seven-county Hudson Valley region, retail salespeople earn a median salary of $21,450 a year. But Cimino said the criteria Circuit City used for determining the cuts also looked at wages for similar jobs within the market.
And just to make those newly unemployed sales associates feel better:
Cimino said that if any of those workers wanted to reapply for those jobs at the new lower wage they would be eligible to do so, "but after a period of time."
Please join Betty & Bimbo in boycotting Wal-Mart, for establishing this pattern, and Circuit City, for cowering in the face of it.