Hillary Clinton Campaign Press Release - From the Senate: Senator Clinton Calls on Circuit City to Reconsider Layoffs

Decries mistreatment of thousands of laid off workers

Washington, DC -- Senator Hillary Rodham Clinton today called on Circuit City to reconsider layoffs of thousands of workers in New York and across the country in order to replace them with lower-paid workers. According to news reports, 3,400 employees were terminated with no notice, told to leave their store immediately and barred from reapplying for jobs at a lower wage for more than two months. In a letter to Philip Schoonover, the Chairman, President and CEO of Circuit City Stores, Inc., Senator Clinton emphasized the devastating impact that these actions will have on the lives of these employees and their families.

"This is the wrong way to deal with the economic pressures of the day -- and the wrong way to treat workers who've given their all to your company. For several years, the Circuit City told its consumers that "We're With You." The steps your company took this week indicate that it is not similarly committed to being with its workers and families," Senator Clinton wrote. "I ask you to reconsider your company's actions, and I stand ready to help in any way I can."

The following is the text of Senator Clinton's letter to the Chairman, President and CEO of Circuit City Stores, Inc. Philip Schoonover:

Mr. Philip J. Schoonover

Chairman, President and CEO

Circuit City Stores, Inc.

9950 Mayland Dr.

Richmond, VA 23233

Dear Mr. Schoonover:

On behalf of my constituents in New York who were terminated and the thousands of other affected individuals throughout the nation, I am writing to express my deep concern about the announcement of Circuit City Stores, Inc. ("Circuit City") that it has laid off thousands of its higher-wage employees in order to replace them with new and lower-paid workers.

According to reports, Circuit City informed 3,400 of its retail employees this week that they were being terminated. Circuit City acknowledges that the employees were not fired for performance-based reasons. The employees were given no advance notice of the decision, and were told to leave the store immediately. Employees were also told that they were not free to reapply for the jobs at a lower wage for ten weeks.

These actions will severely harm and disrupt the lives of these employees, many of whom relied on their job at Circuit City as their lone source of income and their exclusive means of supporting themselves, their spouses and children. The company's troubling decision to prevent the terminated workers from reapplying for any open jobs for more than two months will only worsen the impact of the lay offs on the employees and their loved ones.

These decisions are inconsistent with the fundamental compact between your company and its employees. This is the wrong way to deal with the economic pressures of the day -- and the wrong way to treat workers who've given their all to your company. For several years, the Circuit City told its consumers that "We're With You." The steps your company took this week indicate that it is not similarly committed to being with its workers and families.

I ask you to reconsider your company's actions, and I stand ready to help in any way I can.

Sincerely,

Hillary Rodham Clinton