From: Mike N. 

On Thu, 29 Mar 2007 09:08:40 +0100, Ad
 wrote:

>In further cost-cutting moves, the company today revealed its intent to
>outsource IT infrastructure operations to IBM in a $775m seven-year
>deal. IBM is taking on 50 IT peons from Circuit City, but another 80
>will lose their jobs. Circuit City expects to reduce IT costs by 16 per
>cent over the course of the contract.
>
>Wall Street marked the retailer's shares up two per cent today on the news."
>
>Can you fire someone just because you'd previously agreed to pay them a
>sum which now you feel is excessive????
>
>Good Lord....Maybe the Circuit city people can adopt the soviet approach
>in response "It doesn't matter how little they pay us, we will always
>work less".
>
>Here in the UK (& probably the EU) the comp would be hung out to dry for
>that.

  The company I used to work for did something just like this, with the
exception that current staff had first dibs on the IBM positions.  I don't
see the point of blowing out your whole staff and blackballing them for 10
weeks.

   But, yes companies can do that in the US.   They might have to classify
it as a reorganization or temporary Reduction In Force to comply with labor laws.

   The result of not having loyalty by companies to employees is that there
is very little loyalty back to companies in general.    This can come back
to roost and haunt companies in the future, as they find it harder to
attract and retain good staff.

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