HR Headlines: Oct-08 (Part-6)

BPOs Bullish On Hiring Amid The Slowdown
Despite the meltdown in global economy and trauma in the banking, finance and insurance services (BFSI) sector, Indian business process outsourcing (BPO) firms appear bullish. These firms are increasing these employee strength in the country, attributing their optimism to business ramp-up over the last couple of months and an increased acceptability of offshore work. BPOs anticipate that more work will be offshored to locations like India. A Valuenotes Database study indicates that domestic BPO firms would employ nearly 540,000 people in the next four years against 140,000 staffers currently. Mr. Karthik Sarma, Chief People Officer, WNS Global Services said that the BPO industry differs from the IT industry. Any economic downturn leads to cuts in discretionary IT spending. But such cuts don't affect the BPO industry because most of the revenue comprises long-term contracts.
Source: 14-10-08 rediff.com Compiled by Amresh Anjan

Air India To Reduce Staff Strength
With the meltdown affecting the aviation industry, Air India is proactively seeking ways to reduce its staff strength and whittle down its wage bill. The airline has decided to revive a six-year-old proposal to offer employees leave without pay for three to five years. The scheme would have to be implemented and could take up to six weeks. A spokesperson from Air India said, “All we are doing is reviving a scheme that we had in 2002 and 2003.” Around 15, 000 employees are eligible for the scheme from the total of around 34, 000 that were working for the carrier at the time of its merger with Indian.
Source: 15-10-08 The Financial Express Compiled by Amresh Anjan

Barclays Plans To Axe 3, 000 Jobs Post Lehman Deal
UK Banking Major, Barclays Plc is planning to slash about 3, 000 jobs following its purchase of bankrupt Lehman Brothers’ North American Investment banking and capital markets businesses, said a media report. The layoffs would amount to over 10 per cent of combined investment banking and trading operations, as per a report by American Business Publication, Fortune. Barclays President, Mr. Bob Diamond confirmed the headcount reduction to the magazine and said that he hoped the operation would be complete by year end, including the elimination of the staff positions.
Source: 16-10-08 Business Standard Compiled by Amresh Anjan

Deutsche Bank’s CEO Forgoes 2008 Bonus
The highest-paid executive of Germany’s top 30 companies, Deutsche Bank AG Chief Executive Officer, Mr. Josef Ackermann will forgo his 2008 bonus as banks struggle with the financial crisis. Investment banking chiefs, Messrs Anshu Jain and Michael Cohrs will also go without their bonuses, along with members of the bank’s management and supervisory boards, Deutsche Bank spokesman, Mr. Christian Streckert said.
Source: 17-10-08 Business Standard Compiled by Amresh Anjan

23 Indians Charged In One Of the Biggest Illegal Recruitment Cases
In one of the biggest illegal recruitment cases in the United Arab Emirates, 23 Indians are among 94 foreign workers who have been convicted along with their employer. The court has sentenced the manager for two months. The workers have been given jail terms ranging from three to six months.
Source: 17-10-08 The Hindustan Times Compiled by Amresh Anjan

RBI Staff To Go On Strike on Oct 21
RBI’s employees meeting with the top management ended in a stalemate, with Governor, Mr. D Subbarao refusing to either press for an immediate withdrawal of the government’s notification to stop update of basic pension or to put it on hold for sometime instead of immediate implementation. Due to which, the employees’ association of the RBI, including officers and employees under the banner of the United Forum of Reserve Bank Officers and Employees have decided to strike work on October 21, 2008. The sources close to the development said that the governor, however, has assured taking up the matter with the government at a later stage for a suitable solution. Official sources explained that update of pension refers to revising the basic pension upwards after every revision of pay scales. The pension scheme is similar to the central government’s pension scheme in accordance with RBI circular dated March 1992. Employees have alleged that the withdrawal of the update of pension is a retrograde step since it is totally contrary to the decision of the central government to shower updation benefits both in salary and superannuation to millions of its own employees.
Source: 17-10-08 Business Standard Compiled by Amresh Anjan

Only 1,716 Candidates Have Got Jobs Through Employment Exchanges in 10 Years
Mr. Vijay Kumar Malhotra, Bharatiya Janata Party’s Chief Ministerial candidate for Delhi, said that the Shiela Dikshit Government has not been able to fulfill its promises pertaining to creation of new employment opportunities made in the manifestos in 1998 and 2003, as a result of which only 1, 716 people have been offered employment through employment exchanges in the past ten years. Stating that the Congress promised the youth before the elections that steps would be taken to secure their future, Prof. Mr. Malhotra said all these assurances had been proved to be empty and the promised schemes remained on paper alone. He added that only 1, 716 people had been offered jobs all these years through the nine District Employment Offices, two Special Employment Officer for Handicapped, one Special Employment Office foe ex-servicemen and three University Employment Information and Guidance Bureaus that are functioning at present.
Source: 14-10-08 The Hindu Compiled by Amresh Anjan

PepsiCo To Cut 3, 300 Jobs On Lower Profits
PepsiCo said it will axe 3, 300 jobs after posting a profit that fell more than analysts estimated. The job cuts are a part of the company’s plan to pare $2 billion in pre-tax expenses during the next three years. As many as six plants will be closed, the company said.
Source: 15-10-08 The Hindu Compiled by Amresh Anjan

CSC To Increase Its Headcount
Computer Science Corporation (CSC) said that it is planning to increase its employee strength in India over the next six months. The addition of 2, 000 employees would take the company’s total workforce ally to 21, 000. The company acquired Covansys in July 2007 and First Consulting Group (FCG) in January 2008, and has achieved full integration of both operations into the company. With the acquisitions, CSC has nearly doubled its headcount in India. As per company officials, the financial services and manufacturing sectors offer immense opportunity for growth. Mr. Michel W Laphen, Chairman and CEO, CSC said that the company has faced very little impact due to the economic turbulence in the US and other parts of the world. “We have been fortunate enough during this period and we’ve not laid of any employee during this turbulent time,” he added.
Source: 16-10-08 Busienss Standard Compiled by Amresh Anjan

Aricent Plans To Expand Its Workforce By 10%
Technology and outsourcing company, Aricent is planning to expand its global workforce by up to 10% by year end with particular emphasis on Indian operations. The company aims to add around 800 people over the next three months in various centres around the world. Presently, it has 6,000 employees in India with offices in Gurgaon, Chennai and Bangalore.
Source: 16-10-08 Business Standard Compiled by Amresh Anjan

DBS Indian JV To Lay Off Staff
Following the global financial turmoil, DBS Group Holdings said that its Indian joint venture, Cholamandalam DBS Finance Ltd is closing 75 branches in India. ”The business has to adapt to prevailing conditions in India,” a DBS spokesman said confirming an earlier report that said it will close 75 of its 260 branches and 200 people will lose their jobs.
Source: 15-10-08 Mint Compiled by Amresh Anjan

Britain to Axe 10, 000 Government Jobs
Britain is prepared to axe nearly 10, 000 jobs from its Ministry of Justice as part of a round of budget cuts to battle the tough economic climate. But a ministry spokesperson said although the division was making nearly 1 billion pounds ($ 1.75 billion) worth of cuts, no decision had been made on jobs and that only back office and support departments were likely to be affected.
Source: 16-10-08 The Hindu Business Line Compiled by Amresh Anjan

Max New York Life Appoints New CEO
Max New York Life Insurance, the joint venture between Max India and New York Life International, LLC, the international arm of New York Life Insurance Company, have named Mr. Rajesh Sud as Chief Executive Officer and Managing Director of the joint venture operation. Prior to this, Mr. Sud was serving as the company’s Deputy Managing Director.
Source: 13-10-08 The Hindu Compiled by Amresh Anjan

Best Western Names Mr. Sudhir Sinha As CEO
Hotel Chain, Best Western India has appointed Mr. Sudhir Sinha as the President and Chief Operating Officer. He brings an experience spanning over 22 years in the hospitality and the service industry. Before this, he was Vice-President of development and franchise services at Choice Hotels for seven years.
Source: 13-10-08 The Financial Express Compiled by Amresh Anjan

Ford Appoints Mr. Timothy Tucker
Mr. Timothy Tucker has been appointed as new Vice-President for sales by Ford India. Prior to his India appointment, Mr. Tucker served as Managing Director of Ford-Vietnam and Managing Director of Ford Malaysia in separate, consecutive postings.
Source: 14-10-08 Business Standard Compiled by Amresh Anjan

Mr. Rajshekhar Roy Joins Four Soft
Four Soft, an IT firm providing solutions to transportation and logistic industry, has appointed Mr. Rajshekhar Roy as its Chief Executive Officer (CEO). He will take over the role from Mr. Palem Srikanth Reddy, Chairman and founder of the company.
Source: 14-10-08 Business Standard


Compiled by Amresh Anjan