HR Headlines: Apr-09 (Part-2)

Hiring Activity Moved Up By 5% In Feb 09: Naukri JobSpeak
With increased hiring activity in cities like Chandigarh and Ahmedabad and across sectors such as Oil and Gas, Auto, Construction, Pharma and Insurance, the overall Job Index moved up by 5% from 738 in Jan 09 to 774 in Feb 09. As reported by Naukri JobSpeak, the Naukri.com job index for February 2009, seven cities saw an increase in hiring activity with Chandigarh and Ahmedabad topping the charts. Also, February registered a greater demand for sales and business development professionals and production personnel. To read the report in detail, click here.
Source: 02-04-09 www.naukri.com Compiled by Amresh Anjan

Deduct TDS From Expatriates Salaries: SC To Foreign Firms
Supreme Court has ruled that foreign firms operating in India are under a statutory obligation to deduct Tax Deducted at Source (TDS) from the salary of expatriates employed in India even if the whole or part of their salary was paid in their native country. With this ruling, the apex court has set aside the high court verdicts that ruled that non-resident companies were not liable to deduct TDS on the home salaries paid to their expatriates in foreign currency under Section 192 of the Income Tax Act, 1961. The recent judgment is bound to have serious tax implications for multinational companies and their expatriate employees, as till now they were not paying tax on the payments.
Source: 30-03-09 www.deccanherald.com Compiled by Amresh Anjan

Indian Companies Stalling Fresh Hiring To Cut Costs: Assocham Study
According to a study by industry body Assocham, Indian companies are cutting costs by virtually stalling fresh recruitments in the wake of a global credit crunch. Out of 150 HR professionals interviewed, 90% said that fresh recruitments in the private sector have stopped because attrition rate has almost subsided in all sectors of the economy. As the global economic slowdown is worsening, HR professionals are under constant pressure to work out innovative strategies to cut unnecessary organisational expenditure and reduce fringe benefits such as bonus and other allowances, besides curtailing administrative costs. Also, to avoid layoffs, HR professionals have advised managements to cut salaries in the range of 10-15% at middle and senior-middle levels and 25-35% at senior levels.
Source: 29-03-09 www.livemint.com Compiled by Amresh Anjan

Living Costs Very High In Mumbai And Delhi For Expatriates
According to a study by HR consulting firm Mercer Consulting, Mumbai and Delhi are among the world抯 top 10 most expensive locations for expatriates. The study has used New York as the base city with a base score of 100 points and calculated the cost of living in other cities across the world accordingly. Moscow emerged as the most expensive city with a score of 168.3 followed by Tokyo at 156.10. Among Indian cities, Mumbai (105.10) figured at the fourth place, New Delhi (96.60) at the eighth place and Bangalore (51.80) at the 29th place. Considering increasingcosts, multinationals are now providing expat employees in India with luxury condominiums instead of luxurious individual apartments. These condominiums offer lifestyles matching expatriates expectations but at more affordable costs.
Source: 03-04-09 Hindustan Times Business Compiled by Amresh Anjan

India Diamond Industry loses Sheen; Reduces Labour Force By 50%
As India export industry witnesses a slump amid the global financial crisis, the multi-billion-dollar diamond trade in Surat has taken a hit. Dropping demand in exports has forced mass layoffs in Surat diamond industry where eighty per cent of the world diamonds are processed. The industry employed about a million workers directly or indirectly before the crisis hit. However, now about 500,000 workers in the trade have been laid off and half of the 5,000 processing units have shut down. Industry insiders say that another 50,000 skilled diamond cutters are expected to be laid off if they do not find new markets to sell their diamonds.
Source: 29-03-09 www.livemint.com Compiled by Amresh Anjan

Centre Govt Employees To Get Full Claim From Insurers, CGHS
The Centre has removed the monetary caps imposed by the Central Government Health Scheme (CGHS) on the amount its employees could claim as reimbursement for their medical expenses from the government and insurance firms. eneficiaries who have subscribed to medical insurance policies in addition to availing CGHS facilities... may be allowed to claim reimbursement from both the sources subject to the condition that the reimbursement... should not exceed the total expenditure incurred," said a circular by the Health and Family Welfare Ministry. Earlier, the reimbursement of employees who had subscribed to a mediclaim policy from an insurance company and fell under the purview of the Central Government Health Scheme (CGHS) were not allowed to exceed the package rates prescribed under the CGHS for the particular treatment.
Source: 01-04-09 www.hindu.com Compiled by Amresh Anjan

Using Internet For Fun Increases Productivity: Study
A study by University of Melbourne showed that employees who surf the Internet for fun and other personal reasons during work hours are about nine per cent more productive than those who do not. Study author Mr Brent Coker, from the department of management and marketing, found that orkplace Internet leisure browsing, or WILB, helped to improve workers concentration. In a study of 300 workers, it was found that 70% of people who use the Internet at work engage in WILB. The most popular WILB activities are searching for information about products, reading online news sites, playing online games and watching videos on YouTube. Mr Coker found that short and unobtrusive breaks to surf the Internet helped in relaxing the mind and increasing the concentration leading to increased productivity. However, the study considered only those who browsed in moderation or spent less that 20% of their total work time on the Internet.
Source: 02-04-09 www.livemint.com Compiled by Amresh Anjan

Cabinet Approves Pay Hikes For PSU Officers
The Cabinet has approved salary hikes between 25 and 80 per cent for 2.5 lakh officers in more than 200 central public sector undertakings (CPSU). The Cabinet has also approved a proposal to merge 78.2 per cent of dearness allowance (DA) with basic pay as against the 68.8 per cent DA merger announced in November last year. The basic pay of chief executives in CPSUs falling in different categories will range from Rs 55,000 to Rs 1 lakh per month. In addition to this, the cabinet has allowed performance related pay (PRP) and employees stock option scheme (ESOPs) to be made a part of the compensation package.
Source: 30-03-09 www.hindustantimes.com Compiled by Amresh Anjan

Election Commission Gives A Go-Ahead To The New Pension Scheme
The Election Commission has given a go-ahead to the Pension Fund Regulatory and Development Authority (PFRDA) to start the New Pension Scheme (NPS) for unorganised sector workers on May Day. The launch of the scheme, scheduled for April 1, was deferred earlier due to the code of conduct by the poll panel that restricts administrative decisions that could be regarded as political ploys. However, after the clarification, the pension authority can run the awareness campaign for the scheme, which will cover crores of Indians under the net of low cost pension fund net to take care of their retirement planning.
Source: 30-03-09 www.hindustantimes.com Compiled by Amresh Anjan

Jet Defers Medical Reimbursements To Employees By One Year
As another cost cutting measure, Jet Airways has deferred medical reimbursement for 2008-09 to its employees by one year. This move may help the company save Rs 12-15-crore this year. The employees get on an average Rs 15,000 annually on this account. With declining passenger traffic and rising fuel costs, Jet Airways incurred a loss of Rs 214.18-crore in Q3 FY 09. Jet has already undertaken several other cost-saving measures such as reducing the fat salary packages, capacity reduction and rationalising routes.
Source: 01-04-09 www.dnaindia.com Compiled by Amresh Anjan

Nearly 300 Satyam Employees Join Bank Of America
About 250 to 300 employees of Satyam Computer Services have accepted job offers from Bank of America. These employees were working on the Merrill Lynch project. The sub-prime meltdown-hit investment bank Merrill Lynch was bought by Bank of America in September last year. These employees will get salary raises of around 10 per cent and a bonus depending on their skill sets. Most of the employees on the Merrill Lynch project work from Satyam's Bahadurpally office. They will now join Bank of America office in Hitec city.
Source: 01-04-09 www.rediff.com Compiled by Amresh Anjan

U.S. Jobless Claims Hit 26-Yr High
The number of jobless U.S. workers filing new claims for unemployment benefits rose 12,000 to a seasonally adjusted 669,000 in the week ended March 28, the highest since the week ending October 2, 1982, from an upwardly revised 657,000 the week before. Also, the number of laid-off people collecting state unemployment benefits jumped to a record high in March. This lifted the insured unemployment rate to 4.3 percent. In addition to this, a report by ADP Employer Services showed that private employers cut jobs by a record 742,000 in March versus a 706,000 revised cut in February.
Source: 02-04-09 www.reuters.com Compiled by Amresh Anjan

Japan Unemployment Rate Hits 3-Yr High
Japanese jobless rate rose to a three-year high in February as a deepening recession forced more job losses. Japan抯 seasonally adjusted unemployment rate reached 4.4% in February from 4.1% in January, higher than a median market forecast of 4.3%. This has underlined the need for the government to come up with fresh stimulus for the world抯 second-largest economy. Over the last year, Japan has witnessed a drop in exports demand by almost a half, leaving its big car and tech manufacturers scrambling to lay off staff, cut production and slash orders from their suppliers.
Source: 31-03-09 www.livemint.com Compiled by Amresh Anjan

Average Salaries For US CEOs Fall In 2008
Recession in the US has deeply affected chief executives across US companies. As per a report in The Wall Street Journal, median cash salaries and bonuses for chief executives of 200 big U.S. companies fell 8.5 percent in 2008 to $2.24 million. This was found in an analysis prepared for the paper by Hay Group, a management consulting firm. Total direct compensation for the CEOs, including the value of stock, stock options and other long-term incentives, dropped 3.4 percent to a median of $7.56 million. CEO compensation dropped more sharply at banks and brokerages as median annual cash compensation for CEOs in the financial industry fell 43 percent, to $976,000, while total direct compensation fell 14.2 percent, to a median $7.6 million.
Source: 03-04-09 news.yahoo.com Compiled by Amresh Anjan

1,150 jobs To Be Slashed At Swiss Re
Swiss Re, the world's second-larger reinsurer, has announced plans to cut about 10 percent of its 11,560 global staff over the next year as a measure to shrink costs. Also, job cuts are expected to affect back office and similar functions rather than the company's relationship managers. Zurich-based Swiss Re has also promoted executive board member Mr Agostino Galvagni to chief operating officer.
Source: 02-04-09 news.yahoo.com Compiled by Amresh Anjan

General Motors CEO Forced To Step Down
General Motors' CEO Mr Rick Wagoner has stepped down after US White House officials asked him to leave the recession-hit auto maker. Mr Wagoner, 56, was made president and CEO of the auto company in 2000 and assumed the role of chairman in 2003. Mr Fritz Henderson, GM president and chief operating officer, would serve as the new CEO. General Motors and Chrysler had recently approached the Obama administration to bail them out with federal aid amounting to USD 21.6 billion in an effort to avoid bankruptcy.
Source: 30-03-09 news.outlookindia.com Compiled by Amresh Anjan

Insurer Aviva To Axe 1,100 Jobs
UK insurer Aviva, which owns Norwich Union, is to eliminate 1,100 jobs during 2009 as part of an efficiency drive. The majority of the job cuts are happening at the offices in York, Norwich, Sheffield and Eastleigh. The company would also close 590 contract positions over the next few months. At the end of 2008, Aviva had about 28,400 people on its rolls in the UK and had a global workforce of nearly 55,000.
Source: 02-04-09 news.bbc.co.uk Compiled by Amresh Anjan

Mr Philippe Varin To Head Peugeot
Mr Philippe Varin has been appointed the chairman of the managing board of French car maker PSA Peugeot Citroen from June this year. Currently, he is chief executive officer of Indian conglomerate Tatas-owned Corus. He would step down from his current position on April 6, 2009. Peugeot erstwhile managing board chairman Mr Christian Streiff was fired recently after the company posted huge losses and also announced job cuts.
Source: 30-03-09 www.rediff.com Compiled by Amresh Anjan

UBS Hires Ex-Credit Suisse Executive As COO
UBS AG's new chief executive Mr Oswald Gruebel has hired a former colleague from rival Credit Suisse, Mr Ulrich Koerner, as chief operating officer to lead a cost-cutting drive at the loss-making Swiss bank. As COO, Mr Koerner will oversee the consolidation of group-wide units like personnel management, procurement, real estate and facility management into the bank's corporate center. These areas that need to be centralized currently employ about 15,000, many of them in Switzerland.
Source: 01-04-09 news.yahoo.com Compiled by Amresh Anjan

Deutsche Bahn's Head Resigns
The chief executive of Germany's railway company, Deutsche Bahn, Mr Hartmut Mehdorn has resigned after the company admitted spying on thousands of its employees. He has run the firm for nearly a decade. Deutsche Bahn has previously admitted it employed investigators from a detective agency in Berlin to conduct covert surveillance operations on its employees. Also, the company admitted monitoring staff emails to check whether they were being critical of the company's policies. Mr Mehdorn said he had not been aware of the spying but expressed regret over what had happened.
Source: 30-03-09 news.bbc.co.uk Compiled by Amresh Anjan

Mr Ravi Chaturvedi Quits Jet As Group CEO
Mr Ravi Chaturvedi has quit Jet Airways as Group CEO with effect from March 25, 2009, ahead of his scheduled departure on June 01, 2009. Also, Mr Satyan G Pitroda has ceased to be a Director of the company from March 21, 2009.
Source: 30-03-09 www.financialexpress.com Compiled by Amresh Anjan

New Chairman At Hindustan Aeronautics Limited (HAL)
Mr Ashok Nayak has taken over as the new Chairman of Hindustan Aeronautics (HAL) succeeding Mr Ashok K Baweja. Prior to this, he was leading the light Combat Aircraft and other key projects. Mr Nayak, HAL's 15th chairman, is a mechanical engineer from Bangalore University and joined the premier aeronautical agency as a management trainee in 1973.
Source: 31-03-09 www.business-standard.com Compiled by Amresh Anjan

Mr Habil Khorakiwala Resigns As Wockhardt MD
Mr Habil Khorakiwala has quit as managing director (MD) of Wockhardt. Murtaza. His son will now take over charge of the company.
Source: 31-03-09 www.moneycontrol.com Compiled by Amresh Anjan

Mr Pramod Bhasin Is New Nasscom Chairman
Mr Pramod Bhasin has been appointed as chairman of the executive council of Nasscom, the apex trade body for the Indian IT industry. Mr Bhasin, who is president and CEO of Genpact, was Nasscom's vice chairman previously. He succeeds Mr Ganesh Natarajan. Nasscom has also appointed Mr Harsh Manglik as the vice chairman of the council. Mr Manglik is the chairman and managing director for Accenture in India.
Source: 02-04-09 www.business-standard.com


Compiled by Amresh Anjan