Extract from an article in the Economic times dated 06th November. Now salary cuts in the telecom sector as well. No sector is being spared in these tough times. WIthout the salary cuts the effective salaries are going down due to increase in prices of all commodities. Life with salary cuts is a double whammy…the same salary is buying you lesser and lesser than what you could afford. Be insulated from salary cuts, Register with us and start on your own.
“The salary cuts are now spreading to the telecom sector, too. Some 30-40 senior employees, in the level of vice-presidents and above, across the BK Modi-run Spice Group companies like Cellebrum Technologies, Spice Mobiles and Hotspot Retail are in for salary cuts to the tune of Rs 5 lakh to Rs 25 lakh from their annual cost-to-company (CTC) compensation package.
Speaking to ET, Dilip Modi, Group president & global COO, said: “No salary cut has been implemented as yet and all managers have got their normal October salaries.” ET’s email on the same to the group’s official spokesperson did not elicit any response at the time of going to press.
Top-level sources within the group, however, said the group has indeed effected massive salary cuts, almost 50 percent of CTC of vice-presidents and president-level employees. The salary cut has also spread to Spice Entertainment and the group’s BPO arm, Omnia BPO Services. The salary reduction or ‘deferment’ as the company chooses to call it, according to sources, has not impacted junior level staff.
The company has also, in ambiguous terms, communicated to senior-level staff that the cuts will be restored post recovery of the markets, said a source. “Things are still not clear. We don’t know whether our CTC will be restored or the amount cut now will be given back once market conditions improve. But the BK Modi Group has a tradition of rewarding employees if they stick to them during tough times,” said another source.
While two sources ET spoke to said many senior managers hit by these pay cuts are looking to move on, they are finding it difficult to find suitable openings outside the group because of general slowdown in hiring. Surprisingly, one source said the pay cut was a necessary evil in the current scenario of slackening consumer demand and dwindling cash flows”…
The article continues giving details on the stock prices of the companies that has been falling like all others. But the point to be noted is that even top guys are finding it difficult to find other jobs. So what are you waiting for…register now for free.
