Pay Czar–Circuit City All Over Again

June/12/2009 16:23PM
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In February of 2003, Circuit City issued a press release. The nub of it was this. The new CEO Alan McCollough said he was putting in motion a plan to save $130 million in payroll costs.

First, scrap the commission plan and go to hourly wages. Next, can 3900 employees and shutter 10 repair centers. Of the 3900 dismissed employees, 60% were commissioned sales staff. Those 2100 were to be replaced by hourly people.

So this genius fires the most productive people and replaces them with people who could care less if they produced anything. They got paid the same. Just like we all will when this country is finished with the Obama change plan execution. Guess what? Before, this happened you went into a Circuit City store and several aggressive, knowledgeable sales people converged on you. They knew a lot about what they were selling. They wanted to close the sale. In the end, you went into a Circuit City store and the employees were busy talking to each other. They had no time for a customer.

Circuit City is no more. The socialistic system simply did not work for the workers or the company. Only the fool who did the number on them walked away with his generous severance package. Usually firing the best employees never works. Or, demotivating them so they quit and go elsewhere.

Now, President Obama wants to try the Circuit City model all over again. Is there no end to the foolish ideas this man can dream up and foist on America. Czar after czar is one. Now we have a pay czar. This wizard will have a staff of thousands in no time. A big office and all the trappings. Even a big salary. If not paid by Obama, he will find a way to get paid as all do in Washington. So, you the taxpayer will pay several million, if not a few billion to have the pay czar looking out for you. Will he be cost effective? Of course not. Who will ever check that? The State Controlled Media, no.

Here’s the job description for the pay czar. To make sure that any company that has one dime of government money does not over pay anyone. Salaries are not in his purview, just bonus payments. Or, commissions in the case of Circuit City.

Here’s how I see it working. The companies who did not take any government money will be after all the top performers from the companies who are being hawked by the pay czar. Soon the pay czar companies will be hiring the ex-Circuit City hourly employees or their cousins. People who are good at hiding, playing politics, losing money, and blaming others. Just like the pay czar himself will be.

If these companies can’t get out from under the government and the pay czar, which many will not be able to do, the government and the pay czar will bring them down. It will be Circuit City all Over Again.

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