Guitar Center has always been a major player in the pro audio retail game. Many DJ/Producers (like myself) frequent the stores for all of their audio needs, often spending hours trying out gear and chatting with the employees. Understandably, consumers are thinking about the gear they would like to purchase, rather than the inner workings of the company, because, let’s face it, jamming on the newest Roland or Korg synth is exponentially more exciting (for most of us) than corporate structures, employee benefits, and labor disputes. However, we must keep in mind just how much goes in to keeping a corporation of this magnitude running smoothly; this is largely thanks to a phenomenal staff of employees who, it turns out, have long been entangled in a legal push-pull with the company.
Guitar Center is currently tied up in a labor dispute with the Retail, Wholesale, and Department Store Union (RWDSU). Back in 2013, the RWDSU was elected by employees at three Guitar Center stores, but the union has still not been able to secure a contract with any of the three. According to The National Labor Relations Board, the company refuses to bargain in good faith, although a decision has not been reached following a lengthy trial.
Apparently, tensions between Guitar Center and its employees have now risen even higher, ultimately leading to the Guitar Center corporate structure telling employees that they would have either to sign an arbitration agreement or lose their jobs. The agreement, initially made public by The Huffington Post, waives the rights of employees to file class action lawsuits regarding wrongful termination, wage violations, discrimination, and several other issues. These arbitration agreements are rather controversial in that they diminish the collective legal power of the workforce; as these disputes must be handled outside of court, and employees must individually settle their grievances without a chance to organize collective action. Technically, the arbitrators should be a neutral third party, but large companies often have strong relations with the ones they employ, according to The New York Times.
The Huffington Post reached out to a spokeswoman from Guitar Center, who declined to comment on the matter. The company issued a Q&A sheet about the policy, which states that arbitration is “less costly, less formal, friendlier and faster” than the judicial alternative. Luckily, it also says that the corporation will pay for the “fair and impartial process,” although they will not pay for the employee’s legal counsel if he or she seeks legal help. Guitar Center makes it crystal-clear in the Q&A agreement:
“As a condition of new or continued employment, all new and current associates are required to electronically acknowledge and agree to be bound by the Arbitration Program and related agreement.”
Although employees can still file legal action on a select few matters such as workers’ comp or unemployment insurance, the contract forbids legal action in virtually all scenarios, including “any other violation of federal, state or local law.”
