Tech Mahindra not to retrench Satyam employees, cuts pay
All the 10,000 surplus employees of Satyam Computer, who feared unemployment, can breathe easy now as the company`s new owner Tech Mahindra today said there will be "no retrenchment".
Hyderabad, June 11: All the 10,000 surplus employees
of Satyam Computer, who feared unemployment, can breathe easy
now as the company`s new owner Tech Mahindra today said there
will be "no retrenchment".
The surplus employees would be put in a separate pool and
would be paid basic salary, provident fund and medical
insurance, and at a later stage if they still needed a job
they would be considered for employment, Tech Mahindra CEO
Vineet Nayyar told agencies after the board meeting here.
"Surplus employees is a cause of concern and the whole IT
industry is facing the same problem. We have spent lots of
money on training our employees and they are an asset. We are
not going to retrench them but we will create a virtual pool
and they will be put into that," he said.
The government had recently said that it would not turn a
blind eye to layoffs in Satyam but the Corporate Affairs
Minister Salman Khursheed had clarified that the decision
rested with the company board, which, according to him, was
responsible and sensitive.
The speculation about a massive layoff had started after
Nayyar last month pointed to the surplus staff of 10,000 and
expressed concerns over extra flab in the company, which
recorded a meager profit in January this year but improved the
bottom line to Rs 51 crore in February.
Tech Mahindra, the IT arm of multi billion dollars
conglomerate Mahindra and Mahindra, acquired strategic 31 per
cent stake in Satyam for which the government-appointed board
had invited bids for salvaging the IT giant reeling under an
estimated Rs 10,000 crore financial fraud.
Nayyar said that during the period in virtual pool the
employees can do social work and can look for a job and they
can be called back when required as regular employees, he
Asked whether company has identified surplus employees,
he said, "Yes. We have identified about 10,000 non-billable
(those who are on the bench for the last six months)."