HR Headlines: Jan-09 (Part-7)

Cost Cutting & Redeployment Measures By Wipro, TCS, Infy
Wipro has asked the recruits hired for the tech services arm to join the BPO arm instead to avoid a delay in joining dates. Currently, this is being offered in Kolkata and it could be replicated in Orissa and Hyderabad as well. This will be a time bound offer that could extend between 12 to 18 months after which they will be able to join tech services again. Also, there won’t be any change in salary structure for such employees. On the other hand, Infosys has urged its employees to save $10 each by cutting operation cost and controlling expenditure. The company has also set up a portal for employees to send in cost cutting measures and suggesting bigger business ideas. Tata Consultancy Services (TCS) is planning a an austerity plan under which all capital expenditure will be re-examined.
Source: 03-12-08 www.ibnlive.com & Hindustan Times Business

Compiled by Amresh Anjan

SBI To Recruit 4,200 Clerical Staff
Public sector State Bank of India has announced plans to hire 4,200 employees at the clerical level to fill up various posts at its associate banks across India. Earlier, the bank had said that it would hire 25,000 people in the current fiscal even as several foreign and private banks are shedding jobs.
Source: 03-12-08 Hindustan Times Business Compiled by Amresh Anjan

Campus Offers Decline At B-Schools
B-school students who will graduate in 2009 are feeling jittery as jobs will be harder to land this time. Amid the current economic slowdown, not just jobs but the salary packets have also trimmed down. This is making the students feel edgy as their placement uncertainties rise with some unsure of even finding a job at all. For instance at IBS—a chain of 18 B-schools run by the Institute of Chartered Financial Analysts of India—only 30% of a batch of 4,000 students have found placements yet, compared with 50% by this time last year.
Source: 02-12-08 www.livemint.com Compiled by Amresh Anjan

HR Summit By CII
In wake of the recent Mumbai terror attacks, CII has revamped the theme of its HR summit to ‘Leadership Challenges for Securing our Future’. Summit highlights include talk on ‘leadership challenges & securing our future’, ‘civic challenges and interpretation of crisis management’, ‘impact on society and organisation and its consequences’, ‘contribution of business organisations in creating a positive environment with the employees’, ‘responsibility of citizens and organisations for securing our future’. The event will be held on December 15, 2008 at ITC Grand Central, Parel, Mumbai from 0930 hrs - 1800 hrs. For registration, contact Mr Clarence Rasquinha at Clarence.rasquinha@ciionline.org and Ms Fiona Vaz at Fiona.vaz@ciionline.org or call at 022 24931790.
Source: 04-12-08 CII Compiled by Amresh Anjan

Parsvnath Slashes Salaries of Mid And Top Level Staff
Real estate firm Parsvnath Developers Ltd has announced up to 20 per cent salary cuts for its employees in top and middle level management. The cuts have come in the backdrop of slowdown in the realty sector. However, the company is not laying off any of its employees. Currently, the company employs 1,400 people directly and 30,000 people indirectly.
Source: 03-12-08 Hindustan Times Business Compiled by Amresh Anjan

BSNL Workers to Observe Strike On Dec 11-12
Owing to the delay in wage negotiations, non-executive staff of Bharat Sanchar Nigam Limited (BSNL) will strike work on December 11 and 12. More than two lakh employees of the state-owned telecom company are striking work to register their protest against the delay in wage negotiations.
Source: 29-11-08 Business Standard Compiled by Amresh Anjan

IT Companies Offloading Contract Workers
Amid the economic downturn, contractual workers at IT companies are now bearing the brunt as top-line information technology companies are canceling contracts and cutting down on contract workers. According to IT sector workers, nearly 60,000 contract employees have been asked to go back. Reports suggest that Google, IBM, HP, Dell, SAP and Accenture have fired contract workers. Earlier, companies used to absorb nearly 40 percent of the temporary staff. This has stopped now.
Source: 04-12-08 DNA Compiled by Amresh Anjan

Lack Of Skilled Manpower Hindering BHEL’s Expansion Plans
Bharat Heavy Electricals Ltd (BHEL) is keen on setting up manufacturing bases in the Middle East and Africa. However, the company is finding it difficult because of a crunch of skilled manpower. In the power sector, both private and government companies are facing severe shortage of talent. To tackle the issue, BHEL is opening 10 industrial training institutes (ITIs) under the Eleventh Plan. The first one will be started in West Bengal. BHEL is also looking to ramp up its employee strength from 40,000 currently to 50,000 by March 2012.
Source: 29-11-08 DNA Compiled by Amresh Anjan

MetLife India To Hire Managers And Advisors
While corporates in the US and UK are announcing major job cuts, MetLife India is looking to hire 2,000 managers and 30,000 advisors in the months ahead. The global management consultancy firm Deloitte Touche Tohmatsu is planning to recruit 3,500 employees in the country.
Source: 30-11-08 www.livemint.com Compiled by Amresh Anjan

Lay Offs Are Happening At These Companies
In the present scenario of a global economic meltdown, a number of companies are offloading staff to cut costs. Following is a list of Indian and international companies that have recently announced lay offs. Real estate firm Omaxe has sacked 70 employees and reduced salaries by 10 per cent. AT&T Inc has decided to eliminate 12,000 jobs, about four percent of its workforce. Tata Steel is planning to bring down its staff strength from 31,500 to 23,900 by 2010. This would mean 7,600 job cuts. Reliance Haryana SEZ Ltd is sacking a majority of around 226 employees. Swiss bank Credit Suisse has announced 5,300 lay offs that amounts to 11 per cent of its workforce. Of these, 650 jobs will be lost in the UK. Credit Suisse has already slashed 1,800 jobs this year. Japan’s biggest broker Nomura Holdings is shedding 1,000 jobs in London. Britain's HSBC, Europe's biggest bank, is cutting 500 jobs at its UK banking business. In September, it slashed 1,100 investment banking jobs. ArcelorMittal, the world's largest steel maker, is laying off 1,000 production employees from its plants in Poland.
Source: 04-12-08 news.yahoo.com, www.expressindia.com Compiled by Amresh Anjan

Single-Digit Salary Raises At TCS This Year
While TCS is still hiring staff and not laying off any of its existing workforce amid global recession, it is expected that the salary increments this year are likely to be lower than 10 per cent as against 15 per cent in the previous year. According to the HR head at TCS, the company has already added 18,500 people this year and would have recruited over 30,000 people by the end of this fiscal. However, the stress is now on hiring fresh graduates rather that the experienced staff. About 71 per cent of those joined TCS in the April-September period are fresh graduates.
Source: 30-11-08 Hindustan Times Business Compiled by Amresh Anjan

Jet Airways Announces Salary Cuts For Employees
Jet Airways chairman Mr Naresh Goyal has urged his employees to accept salary cuts as “tough measures for tough times”. Reeling under huge losses, the top management of the company has taken a voluntary pay cut of 25 per cent. Employees with a gross salary of over Rs 75,000 a month will take a graduated salary cut over the next 12 months. Pilots have been offered a combination of wage cut and allowance rationalization. Indian pilots have protested the move asking the company to lay-off 240 expatriate pilots, who earn 50 per cent more than their Indian counterparts.
Source: 03-12-08 www.domain-b.com Compiled by Amresh Anjan

Satyam Sacks 40 Employees For Fudging Travel Bills
Satyam Computer Services has fired 40 employees on charges that they furnished bogus travel bills, thus sending out a strong message to its workforce as the company tries to bring down travel costs. In Q2, company spent $28.70 million on travel expenses as against $26.30 million in the same quarter last year. Also, the company has stated in its routine disclosures to New York Stock Exchange that its competitive advantage in terms of lower cost of wages might go as wages in India are rising at a fast rate.
Source: 01-12-08 Hindu Business Line Compiled by Amresh Anjan

Bonus Cuts At Toyota
Toyota Motor Corp has announced its decision to cut management bonuses by 10 percent as result of the global economic slowdown and falling production. Roughly 8,700 managers will be affected by the bonus cuts in Japan. Car sales in Japan fell 27 percent in November to the lowest level for this time in 39 years.
Source: 02-12-08 news.yahoo.com Compiled by Amresh Anjan

HP Informs Employees Of No Increase In Pay
Hewlett-Packard Co. (HP) has sent an email to all its employees informing them that there will be no rise in the compensation this year. The compensation review is due in February. HP employs around 320,000 people worldwide of which 60,000 are based in India. HP has also asked its employees to undertake cost cutting measures by restricting travel and having virtual meetings. HP usually offers an average salary increase of 14% every year.
Source: 03-12-08 www.livemint.com Compiled by Amresh Anjan

Pay For Performance: New Mantra Of Finance Sector
Foreign retail and investment banks are adopting the route of ‘pay for performance’ to retain talent. The average level of bonuses is set to drop but performing executives in this sector can hope to be suitably rewarded. The variable compensation this year will lie between 0 and 10 per cent as against 25-40 per cent a couple of years ago. This will make the pay packages more realistic as the year-on-year rise will be brought down to reasonable levels.
Source: 29-11-08 Hindustan Times Compiled by Amresh Anjan

US November Job Losses Revised
Goldman Sachs has revised up its November job losses for the US to 400,000. The revision was done after reports of dismal employment scenario in the private sector. Previously, the forecast was of 350,000 job losses. Goldman economists have revealed in a research note that most reports on employment conditions in November have shown additional weakness relative to earlier months.
Source: 05-12-08 Hindustan Times Business Compiled by Amresh Anjan

UK Job Market Weakens
According to a new survey from Markit Economics, permanent placements declined at a record rate in the UK as the job market weakened rapidly in November. The survey witnessed the fastest recorded drop in permanent and temporary jobs as well as in permanent salaries and temporary staff pay rates. The only sector that bucked the downturn trend was nursing and medical care.
Source: 03-12-08 news.bbc.co.uk Compiled by Amresh Anjan

High Number Of CEOs Taking The Exit Route in the US
According to a survey by Challengers’ firm in the US, 1,257 CEOs of publicly traded and closely held American companies lost the top job in 2008. The number is 10 per cent higher than last year. Yahoo! Inc’s out bound CEO Mr Jerry Yang has agreed to step down and resume his advisory role but finding his replacement is also tricky. Mozilla Corp’s Ms Mitchell baker, Quiznos Corp’s Mr Gregory Brenneman and Hasbro Inc’s Mr Alfred Verrecchia are others among 216 CEOs who have stayed on with their companies in some other role after stepping down as CEOs. The number is 22 per cen lesser than last year as boards are more keen on moving the person out now, the report says.
Source: 29-11-08 Business Standard Compiled by Amresh Anjan

Car Bosses In The US willing To Work On $1 salary
In a first of its kind move, the bosses of America's two biggest car companies Ford and General Motors are promising to work for just one dollar a year, if the US Congress gives them access to a $25-billion loan under a bailout plan. Ford CEO Mr Alan Mullaly, who took home $21 million last year, says he is willing to work for one dollar a year if the government approves the loan. Ford is also selling its five corporate jets. Automobile companies like Ford, General Motors and Chrysler are struggling to stay afloat amid the current US recession which has produced the worst car sales in decades.
Source: 03-12-08 www.abc.net.au Compiled by Amresh Anjan

Merrill Bonuses To Fall By 50 Per Cent: Report
As per media reports, Merrill Lynch & Co, which is set to merge with Bank of America Corp, is planning to cut year-end bonuses in half. Also, some traders and investment bankers will face steeper cuts. Merrill's revenue fell 96 percent from a year earlier through September.
Source: 03-12-08 Reuters Compiled by Amresh Anjan

Corus To Temporarily Cut Work Hours Of 4,600 Staff
According to Dutch media reports, Tata Steel unit Corus is looking to temporarily reduce the work hours of 4,600 workers and has applied for Dutch government financial aid. Once approved, the Corus workers in the Netherlands would be paid 70 percent of their compensation via unemployment benefits, while the company would bear the other 30 percent over a period of six weeks. Currently, Corus employs 11,300 staff in the Netherlands.
Source: 02-12-08 Hindustan Times Business Compiled by Amresh Anjan

Engineers’ Union at Boeing Approves Work Contract
Thwarting the possibility of a second damaging strike, Boeing Co’s second largest union, Society of Professional Engineering Employees in Aerospace (SPEEA) has approved the company’s four-year contract offer. The union comprising more that 20,000 workers represents white-collar engineers and technicians. The decision will boost production at the company’s Seattle area plants where 27,000 machinists have returned to work after a 58-day strike. The pact came through after two weeks of face-to-face negotiations. The contract is valid through October 2012.
Source: 02-12-08 www.livemint.com Compiled by Amresh Anjan

Citigroup: Severance Packages Of Older Staff Slashed; Honchos Willing to Forego Bonuses
After announcing 75,000 job cuts this year, Citigroup is now trimming the severance package of staff having put 10 or more years with the bank. This is being done to help cut costs and fight financial crisis. The bank has also hinted at further job cuts. In his memo, Citi's HR chief has written "the severance package will be amended to eliminate the supplemental severance payment that provides additional weeks of base pay to employees who had 10 or more years of service." Earlier, the bank used to pay more than two weeks for every one year of service in severance package for 10-year plus employees. Meanwhile, the top executives have expressed their willingness to forego their bonuses this year. The formal decision on bonuses will be taken by January. The top men at Citigroup are trying to gather investor confidence after winning a government rescue package.
Source: 03-12-08 www.ibnlive.com, Hindustan Times Business

Compiled by Amresh Anjan

International Migration Report Suggests Demand for Immigrant Workers Will Rise
The International Organization for Migration based in Geneva has said in its 4th World Migration Report that countries should keep welcoming skilled migrants despite the global economic downturn. The report says that rich nations will require migrants for jobs that their shrinking workforces cannot or will not do. As per the report, by 2030, India and China will supply 40% of the global workforce.
Source: 02-12-08 www.livemint.com Compiled by Amresh Anjan

Rolls-Royce India Appoints New President
Automobile giant Rolls-Royce has hired Mr Anil Shrikhande as the President of Rolls-Royce India. In his new role, he would be responsible for all Rolls-Royce operations and activities in India and South Asia. Earlier, Mr Shrikhande has held a number of executive positions at Boeing India.
Source: 04-12-08 www.rediff.com Compiled by Amresh Anjan

Tata Chemicals promotes Mr Mukundan to Managing Director
The Mumbai-based caustic soda and fertilisers’ maker Tata Chemicals has decided to appoint its Executive Vice-President Mr R Mukundan as the next Managing Director when the current MD Mr Homi Khusrokhan retires in December. Also, Mr R Mukundan, Mr Kapil Mehan and Mr P K Ghose have been appointed as Executive Directors of the company.
Source: 29-11-08 Business Standard Compiled by Amresh Anjan

Mr Peter Baker Joins Future Group
Future Group has hired Mr Peter Baker to expand its health and wellness business. Prior to this, Mr Baker was responsible for launching H&B Stores, the health and beauty retail venture of Dabur, where he was in the capacity of CEO. His date of joining has not been finalized yet.
Source: 04-12-08 Hindustan Times Business

Compiled by Amresh Anjan