Goddamn Low-Wage Workers Are Earning Too Much
Apparently, if you don't get paid like Wal-Mart workers, you are being overpaid:
RICHMOND, Va. — Circuit City Stores (CC) said Wednesday that it plans to cut costs by laying off 3,400 store associates and hiring lower-paid workers to replace them and by trimming about 130 corporate jobs. Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy (BBY), will lay off store workers it said were earning "well above the market-based salary range for their role" and replace them with employees who will be paid at the current market range, the company said in a news release.
"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," said Philip J. Schoonover, Circuit City's chief executive.
The company also plans to outsource its information-technology infrastructure operations to IBM, a move that is expected to cut IT expenses by more than 16%. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.
Welcome to the new service economy, kids, where unions are corrupt, but whatever the corporations do is A-OK.
And what are the new stipulations of the service economy? Check it out:
Income inequality grew significantly in 2005, with the top 1 percent of Americans — those with incomes that year of more than $348,000 — receiving their largest share of national income since 1928, analysis of newly released tax data shows.
. . .While total reported income in the United States increased almost 9 percent in 2005, the most recent year for which such data is available, average incomes for those in the bottom 90 percent dipped slightly compared with the year before, dropping $172, or 0.6 percent.
The gains went largely to the top 1 percent, whose incomes rose to an average of more than $1.1 million each, an increase of more than $139,000, or about 14 percent.
The new data also shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980.