Do employees have a right not to be spied on? If you were an employee at Fanuchi’s store, would you think your privacy had been wrongly invaded?

JEAN FANUCHI, MANAGER OF A MODERATELY large department store, was worried. Shrinkage in the costume jewelry department had continued to rise for the third consecutive month. In fact, this time it had nearly wiped out the department’s net profit in sales. Worse, it couldn’t be attributed to damage or improper handling of markdowns or even to shoplifting. The only other possibility was in-house theft.
Fanuchi ordered chief of security Matt Katwalski to instruct his security people to keep a special eye on jewelry department employees as they went about their business.
She also instructed that packages, purses, and other containers employees carried with them be searched when workers left the store. When these measures failed to turn up any leads, Katwalski suggested they hire a couple of plainclothes officers to observe the store’s guards. Fanuchi agreed. But still nothing turned up.