Best Buy, Inc. (NYSE: BBY) has found great success in its Geek Squad mobile installation and computer services unit. With Circuit City now gone (and its Firedog services unit as well, at least for the time being), Geek Squad is becoming quite the large margin center for Best Buy. Should the largest consumer electronics chain in the U.S. be afraid that Geek Squad employees will soon unionize?
Most large retailers have faced collective bargaining attempts several times in their respective histories. Best Buy -- responding to emails to Geek Squad employees with information about unionization -- has responded. The retailer indicated that unions would interfere with its ability to connect with and negotiate with each individual Geek Squad employee.
Really? It seems odd that Best Buy can talk to the thousands of Geek Squad employees closely, but maybe it can buck the trend and become the "big-box that could" in reference to taking care of employees without them seeking collective representation.
This will be an ongoing thorn in Best Buy's side. In its soft response to the emails that are floating into the inboxes of Geek Squad employees, the retailer says "We have been having meetings with you, asking everyone to voice their opinions and asking everyone to help solve the problems we collectively face in tough economic times." Is that good enough or just standard, anti-union lip service? When Best Buy indicates that "We are concerned about being able to talk with you directly" in response to possible unionization, is it really? What's your take?
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Reader Comments (Page 1 of 1)
9-10-2009 @ 8:59PM
thedude said...
Unions historically have provided excellent pay and benefits to the most lazy, unambitious, ignorant employees in the "herd" whilst demoralizing the harder working more capable employees.
Why should an A level employee strive to do their best when a D level employee is earning the same pay and getting the same benefits for being an incompetent slacker.
My experiences with Geek Squad have been limited (on purpose) and what little there has been made me feel that I certainly shouldn't let any of them get their hands on my computer.
If there are a lot of lazy "Geeks" they would unionize. If there are a lot of hard working "Geeks" then they may be too smart to unionize.
I have worked in both union and non union shops and one thing for certain is that the non union shops get more done with a higher level of quality using fewer employees, and even more important is a more pleasant work place with a lot less griping, whinging, moaning and fewer "accidents" resulting in lost time and exponentially fewer workers comp claims.
It would take 5 union laborers 2 QC supervisors 1 overall supervisor 1 manager and 1 shop steward just to get my right shoe tied in the morning and another equally sized team to get the left shoe tied as well. All to do a job I can do myself.
At one time unions were critical to the US worker but now they are a detriment to the US manufacturing base
9-10-2009 @ 11:23PM
Rob said...
Corporate America will cause the unions to return, and for good reason. It is not uncommon to make managers work seven days per week and not get their vacations. Meetings are filled with getting rid of tenured people to bring in cheaper people without benefits because so many are out of work.
9-11-2009 @ 2:16AM
X said...
If they do unionize, I would stop shopping at Best Buy. I do not do business with companies with a union.
9-11-2009 @ 2:54AM
nihil said...
"Thedude" is a nitwit. His style is exaggeration, generalization from one anecdote which is rarely true. The facts of unionization today can be learned, by anyone who is seriously interested, by going to www.nlrb.gov to ALJ decisions, and then read a few of the unfair labor practices cases cases. On the whole, neither the workers who try to form unions and the employers who try to keep them out are totally ignorant of labor law (which is voluminous and complex), and lose cases that they could win if they knew what they were doing. Both sides tend to lie when testifying, and the judge in making his decision either credits or rejects testimony. The workers lie from fear and ignorance. The employers show up with expensive lawyers, many of whom are crooks. A good and honest lawyer can look at the facts and predict with precision how a case will turn out. In most instances, parties would not lose cases if they listened to an honest lawyer. They would settle immediately and take their chances with election or arbitration. But where's the money in that? Lawyers live on long drawn-out cases, not quick settlements. Before any case goes to trial, staff of the NLRB will try to get a settlement. In most cases they come up with one that both parties can live with in a few fours, with no lawyers unless a party wants one. (The NLRB staff are paid salaries and not fees. Trials do not make them rich.)
Of course many employers will go out of business to avoid bargaining with a union. They hire a "consultant" who knows all the tricks and is usually only interested in inflating his fees. The law says that if workers want a union, the employer has to argain with them. It is often possible for a compqny to build a productive relations with the union -- its a matter of give and take. If the employer wants to sweat the workers and rid himself of the non-performers, it is easy to it clear in the initial contract. No one likes freeloaders less than their fellows. What most workers want is a good job in a sound sustainable company. They will fight hard for good pqy, but few are idiots -- show them the books if the company is in trouble, and they will what they can to help the company survives -- unless they have been turned into irrational enemies by company tricks and chiseling. If you want top workers you have to pay top waes. If you don't. the good ones will move on leqaving the layabouts behind. Look at the MBA course outlines at MIT.edu and see what effective universities teach their son to be rich and succesful (and overpaid) managers. Its great if you can build a workforce of intelligent, hardworking, cooperative workers without a union. I believe you can if you establish a fair and cooperative workforce from the beginning. The secret is to hire good people with good training, adapt the company to the people you have, and pay them as well as you can while maintaining growing profitability. Many the most profitable companies provide conditions and wages that the old-fashioned anti-union business can't touch. My favorite is Intel -- non unjo (in te U.S. anyway) with a 40 year-record of rapid growth. Technologically, it is so good that it has a monopoly of microprocessors. It requires its workers to work hard and successfuly. It is not a friendly, touchy-feely place but is out on the frontiers fighting to stay ahead of its few small competitors (with whom it has patent pools). They take what they want and leave stuff like memory (which they invented) to the others who often lose money. Every Intel employee receive stock options (not worth much recently) but they understqnd that they hwve q shqre in the company that depends (like salaries) on their performance. Unions face a hopeless task trying to organize Intel. There are many other examples, but low wage companies that do not innovate, that are swampe by Chinese and Indian firms cqn't last anyway. We are building a huge underclass of uneducated and unskilled workers (many of them illegql immigrants). They hew wood and draw water and barely survive. No one knows what to do with them except to lowier the real wage until their employers can compete with Chinese and Indian and Korean workers. Until then, they work as janitors, food service employees, and non-union construction (which in many cities is conducted in Spanish). Our skilled and trained workers cannot compete with Germany, Korea, India, and China (whicj graduqates ten time as many engineers each year as we do. Don't blame it on unions. Almost all Japanese and German manufacturing workers are unionized. Only 7% of American workers are unionized (many of which are in the public sector where half the workers are in unions.)
9-11-2009 @ 12:58PM
ev4dethis said...
Only reason I see Geek Squad to Unionize is that we are the lowest paid employees in the I.T. industry. And with Best Buy wielding so much market power, and the 90% margin sales we(the agents) make constantly, it's amazing how much Best Buy profits from our knowledge.
To give them so credit, they do provide us pretty useful tools.
Other than pay, the Best Buy HR usually takes care of us on other aspects.