Re: Circuit City Layoffs

On Mar 30, 10:26�pm, "Jim Mitchell" <jnjmi...@xxxxxxxxxxxxxxxx> wrote:
Since they admit that they are replacing these workers with cheaper
new hires, it would be interesting to calculate how much they are
actually going ot save...for instance, say a longtermer is making
$40,000 a year and a replacement is going to make $30,000 a year, they
save $10,000 per fired employee per year.

My guess is that a longtermer was making $30,000-$35,000 or so plus benefits
(not great, but a lot better than the average Blockbuster clerk), and that
the new hirees will be making minimum wage.  But your point remains the
same.

Not a bad guess...I was doing a search, and I don't remember the
article these figures came from or if they are accurate, but it
indicated that the fired employess made between $11 and $16 per hour,
with minimal benefits (and sales commissions were cut two years ago).
They expect to pay the new employees $7 to $8 per hour with no
benefits.

Garry

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