Cost_Club_Wk_2

Cost Club Atlanta Regional Office 100 Cost Club Blvd. Atlanta, GA 30303 404-330-6190 - Office Memorandum TO: Esq., Manager FROM: M. Williams, Assistant Manager Human Resources DATE: Monday, March 14, 2011 RE: Response to Memo received March 8, 2011 Message I - RE: Discharges at Cost Club – Anderson The question to be addressed: if the GM (General Manager) can discharge employees without cause. Mr. Smith, GM – since the store is in facing financial and economic hardship during this recession, there aren’t any repercussions from Federal or State Law. You terminated the employees under tenuous economic pressure. While there are certain “at-will” conditions that the company has to be mindful of, this case is not an example. CC’s Handbook clearly states under “Termination Policies” that, “if the company has to downsize, merge or relocate there may be a reduction is staff….” Message II – Regional CEO want to reduce employee costs The question to be addressed: will the law allow reduction in force through the use of temp’s and contractors Mr. Taylor, CEO - Your request to amend the staff at your location is here by granted. Under Termination Policies in the CC Handbook the employees understand that they are at risk and the terms of their “at-will” contract allows CC the right to adjust their relationship with our company. You might suggest to those that you want to terminate an alternative. Suggest this to them, that instead of a complete severance of the relationship, you could offer them part-time hours until the company’s economic status is back in-the-black. Please let them know that they will have to sign a new contract with the new terms outlined. This option may appease them just enough to overt the thought of legal action. Although CC is standing on solid ground, we do want to avoid any undo legal action. So please consider that fact that CC has put a lot of money into the cost of training these employees. They all have spotless records, with excellent performance reviews. These employees could continue to be an asset to the company as part-time associates. Plus, this will avert the cost of unemployment insurance we would have to pay if we fire these employees. Message III – Safety Manager’s concern bout injury and damages The question to be addressed: is Cost Club (CC) vicariously responsible for the actions of its employees. 1. Springfield, KY - Employee, touching customer in direct violation of the CC Employee Handbook Pat as the employee knows they were in the wrong and will have to suffer the consequences for their action. For the employee to “slap a customer” is beyond reproach. There is nothing we can do for this employee at this point; re-training will not help, anger management may…but that is not our problem now. This employee must be terminated a.s.a.p. and the customer must be contacted by me personally. The next best thing we may do is a conference call with the customer…at your convenience. Without expressing any overt liability, we will feel out this customer and see if she is amiable to a gift card as a symbol of our sincere apology of the actions of the thoughtless former employee. 2. Hillsboro Employee doing after hour work at customer’s home. This is in clear violation of our “no fraternize/consorting with the customer’s” policy. This is in the Handbook on page 48. You do have the signed copy of the “checklist” titled ‘New-Hire Acknowledgement.’ This confirms that this employee received and was in class when the trainer went over the ‘How to Be a Winning Employee.’ Bob, we our assets are covered. This employee and the customer made a side deal and known that the sales people are, just that. This customer was looking for a “cheaper deal” then the one that is normally offered by our Certified Installers through the Electronics Department. The young, former-employee was not “on duty” and his business card didn’t state that he was a certified as installer. The customer is 3. Lexington, KY – Real Estate (RE) Agent’s – Misrepresentation of Sign-Off. The real estate agent is responsible for this snafu. As a real estate agent he should know that he is bound first by the state laws of the being a real estate agent. Being a licensed agent he knows he should 1st not misrepresent (to the prospect) his “position” with the potential client. He can’t (under penalty of law) misrepresent indeed or covertly. He knows that Cost Club has to sign off on ALL offers. In real estate there is a law called “parole evidence.” Simple stated: “…every agreement has to be in form of writing. Especially, when dealing with real estate.” Therefore, we (CC and the commercial real estate broker) did not have an agreement. Any “implied agreement” wouldn’t hold up in a court of law. The commercial real estate broker is not without blame since they also are licensed and should not have relied (to his detriment) on the assurance of a non-existing sign-off. The RE agent was an authorized representative without the ability to sign-off on real estate…“NO sign-off ability on final deals.” This simple phrase, I am sure that was in the “Letter of Introduction” stating that he was an authorized representative. Another point is that he didn’t have Power of Attorney from our corporation. If that phrase was NOT in the letter then it does present ambiguity…which may present a problem…and we most certainly will have to consult the legal department. Since, ANY uncertainty or ambiguity with the writing of a contract falls on the shoulders of the writers (our legal department.) Lexington, we might have a problem. Message IV and V The question to be addressed: Mitigation of lawsuits = more training and additional evaluations. The fact that the training with our employees is not working is disturbing. I have several recommendations: 1st Thorough background checks of all employees. 2nd Retraining of all employees, this does not have to happen all at once, but can be gradual over a year. 3rd I’m recommending that even management takes advantage of re-training because “many times the apple starts getting rotten at the core.” 4th I recommendation for future classes the following: instead of one day I suggest that we bump it up to 2 weeks. Covering the following subjects: Sexual Harassment; Customer Relations; Covering all EEOC issues; as well as Title VII laws. 5th From here on out, it is recommended that all employees have a 6 month performance evaluation instead of the annual review.