I'm on no way defending GC. But here is my take. 15 years ago, when I started playing bass, Guitar Center was the place to go.
I could haggle and get a stupid good deal on anything, used or new. Then just take it back for any reason under the sun, full refund. In terms of profits, they ran a pretty loose ship. Why, because they were the volume king. It's just like selling cars, sell enough and you're bound to make money, even if you " give a few away". I had a buddy that worked there tell me his boss always said "make the deal no matter what". It wasn't about profits it was about customer satisfaction. Employees would get gear at cost, that actually costs the company money. And I KNOW tons of stuff slipped out the back door.
Fast forward a decade and the internet has blown up, they are taking a chunk out of that volume based profit. Same product, lower price without all the hassle. Now they have to compete.
That's when they clamped down on all the haggling, we all remember that. It sucked.
What's happening here is GC was poorly run for a very long time. They got a bail out and the new boss, AIN'T like the old boss. The new boss wants to get paid. At the expense of the customer and the employee. They are about to clean house and start from scratch. This arbitration crap is to weed out the " rebels" so to speak. Find out who is willing to play along, who isn't.
It sucks for the employees and for us, but I'm not at all surprised. I've seen it in the hotel/ restaurant industry for 20 years. We've all seen it, and if you owned a business that was about to tank, you would do what you had to, to make it survive.
GC will take a hit over this initially, especially in the court of public opinion. In a few years time, the dust will settle, the old employees will have moved on and the new ones won't care what happened. Or even know, because they will sign this paper work blindly. And Guitar Center will go on and become another soulless monster with a checkered past making tons of money and they won't care that a few hundred guys/gals on TalkBASS.com boycotted them 5 years ago. Those bastards!!!