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GC employees unionizing...

Actually it's an interesting topic, I had not heard that. Hopefully it wont go political.. so long as we stick to the business aspect of it only I think it'll be fine.

I'm a little confused though - the last I heard though, GC was doing really bad and that they were pretty much on the ropes at this point?

Though I may be totally wrong:

"Started in 1959 in Southern California, Guitar Center now has 244 stores in 44 states and racked up net sales of $2.1 billion last year"

I wonder what their costs of staying afloat are compared to the net sales.

My worry would be that - if- GC is truly on the ropes, this may be their swan song.
 
Actually it's an interesting topic, I had not heard that. Hopefully it wont go political.. so long as we stick to the business aspect of it only I think it'll be fine.

I'm a little confused though - the last I heard though, GC was doing really bad and that they were pretty much on the ropes at this point?

Though I may be totally wrong:

"Started in 1959 in Southern California, Guitar Center now has 244 stores in 44 states and racked up net sales of $2.1 billion last year"

I wonder what their costs of staying afloat are compared to the net sales.

My worry would be that - if- GC is truly on the ropes, this may be their swan song.

Bain bought them for 2.1 billion and assumed the debts.

Article from June:

http://www.reuters.com/article/2013/06/12/buyouts-bain-guitarcenter-idUSL2N0EO24720130612

They aren't in a good spot really, they do however plan to open more stores.

Edit: Another article (easier to read) Invalid Link Removed
 
Well, winning the election, not letting any unfair labor practices discourage you (don't know if GC has any pending ULPs against it, but it often happens during a campaign, especially before an organization hires a law firm), and getting to a first contract are one thing. Sustaining the interest of the rank-and-file in the long-term, particularly at the local level, is another thing.

The reality is a job at GC is just another poopy retail gig. It's maybe a step above telemarketing. It's not something someone should be trying to make a career out of. Welders, EMTs, nurses, university faculty, communication workers, teachers, etc. are going to be more invested in their locals because they have an investment in their careers. If I'm a sales associate at GC, am I going to be wanting to serve as an officer and fight tooth and nail every three years to get the best CBA that I can? I doubt it. I'm probably going to be gone long before the current CBA expires, because at the end of the day, union or not, GC is just another crappy retail gig.

I'd love to see GC employees get a fair shake here, but I'm ultimately cynical about it. My prediction: The union wins; management is all but impossible to bargain with for the first contract; the employees who were instrumental in the original election move on and are replaced by employees who are apathetic; a decertification petition is submitted to the NLRB; things go back to business as usual. :hmm:
 
Nail-Coffin

GC has always suffered from having (relatively) poorly knowledgeable and friendly sales staff. The chance to unionize, raise wages, raise benefits, etc... can greatly help turn that around. Unfortunately, I kinda think it's too late for GC, but it could help them turn things around.

Also, I have a feeling this thread might do better in the lobby. Forum rules are bit looser in those parts, so threads like this tend to be able to exist.
 
So, how exactly is a company that is by all accounts "on the ropes" supposed to pay higher wages and better benefits? Everything else is just people getting mad. But answering that question is the only thing that matters to any possible resolution. Money doesn't appear from thin air just because people get mad.
 
So, how exactly is a company that is by all accounts "on the ropes" supposed to pay higher wages and better benefits? Everything else is just people getting mad. But answering that question is the only thing that matters to any possible resolution. Money doesn't appear from thin air just because people get mad.

Most GC stores never seem to have the same employees working there each time I go into one. In other words, there is frequent employee turnaround. What does that mean? Well, it means increased costs from having to train new workers on a frequent basis. Raising wages to attract better workers could lower the turnover rate and thus lower training costs. Training costs vary from company to company, but some places can spend well over $100k just to train one new employee. Is that the case for GC? I doubt it, but no doubt it is still a cost for them, and if a store is needing to train 10 new workers a month then they obviously are spending a lot on that cost.

Furthermore, a better pay rate and/or benefits package means people will be more hesitant to leave the job. If the worker feels appreciated then he is more likely to stay loyal to the company and put forth an honest day's work into his job. Paying minimum wage and a beyond ***** commission rate isn't going to make anyone work hard for you, and it will likely result in poor customer satisfaction (a common complaint you see on music forums). With a better rate you will attract better and more educated workers who can help provide exceptional service. You might even find your store having increased sales because of this, as well as more returning customers, and actual relationships forming between your workers and your patrons. That is worth A LOT in this modern business world.

In other words, it's an investment and it's one that seems to be paying off big time for companies like Costco (who pay there workers a livable wage). Walmart takes the low cost on everything (including their workers) approach, and we all know how much we all love Walmart and think highly of their customer service and satisfaction [/sarcasm].