This practice has always seemed a waste to me, as well. I have always taken the opinion that if someone is not performing their work well, regardless of reason, they should be let go. If their work is of good quality, then obviously they are not abusing email or Internet priviledges.

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One-Third Of Companies Monitoring Email dotpavan writes "While studies have shown that spying on workers tends to make them less productive, that hasn't stopped approximately 1/3 of all U.S. companies from employing email monitoring tools. 43% of those companies employ staff to check outgoing emails.> [More]

(Via Slashdot.)

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