Several conglomerates on Friday promised not to cut the salaries of their employees and did not think about redundancies as a result of the coronavirus pandemic that threatens to plunge the global economy into recession and leave millions unemployed.
I will reduce my salary to zero before hiring an employee, said Rajiv Bayaj, director of Bajajaj Auto, in a TV interview. The Aditya Birla Group, the Vedanta Group and the Essar Group have also promised not to cut jobs or cut their employees’ salaries.
The chairman of Tata Sons N Chandrasekaran said the group’s companies will fully compensate the temporary and day laborers who work in their offices and facilities in India in March and April. They will also be rewarded if these workers cannot work because of quarantine measures, site closure, factory closure or other reasons, he said.
Management guarantees from India Inc. came after IndiGo, the country’s largest airline, announced a significant reduction in management salaries, while promoters Apollo Banden, Oncar Kanwar and Niraj Kanwar announced a 25% reduction in salaries. GoAir’s already sent 80 of his expats home.
Mahindra’s spokesman said that if the situation so requires, the issue of reducing the salaries of promoters and CEOs will certainly be investigated.
Х. H.M. Bangur, Managing Director of Shree Cement, said that in these difficult times, the economy can take a step back and people’s safety and lives are of paramount importance. We have taken various measures to ensure the safety of our employees. It’s wrong at times like these to talk about business, profit and loss, income. I’m not saying we pay attention to the economy, but it will become important when the Covida-19 threat disappears, he said.
According to some sources, Emami did not consider a pay cut when drawing up an emergency plan.
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The CEO of Paytm, Vijay Shehar Sharma, said he, inspired by Arne, will not accept his salary this month and next month. I’m giving this money to all the Paytm office staff we need during these trial periods, he said. Charma told Marriott International CEO Arne Sorenson that he was giving up his salary for the rest of 2020, given the financial impact of Covid-19 on Marriot and the hospitality industry. Pankai Patel, the president of Cadila Healthcare, said the company has no intention of cutting jobs or temporarily lowering the salaries of its employees. This situation is temporary and will pass. There will be both gains and losses in the economy. We can’t respond to crisis situations, he said.
President Mariko Harsh Marivala said the company’s response to the crisis and job losses will depend on the industry and the challenges it faces. Sectors such as aviation and hotels now face considerable obstacles. The survival of companies in these sectors is at stake. I do not believe that the business community can take a unilateral decision on this matter. All factors must be taken into account, he said.
Wage and employment losses are likely to occur in the high-risk service sectors, including airlines, hotels, shopping centres, multiplexes, restaurants and retail outlets, where demand is falling sharply as a result of nationwide closures. If the current global and domestic economic downturn continues, it will have an impact on demand and implementation.
The CEO of an airline company said that job losses in the airline industry probably have most to do with the fact that this is the sector most affected.
With contributions from Dev Chatterjee, Viveat Susan Pinto, Sohini Das, Shally Seth Mohile and Avishek Rakshit.