Bajaj: No Pay Cuts or Job Cuts For All Employees Staying Home During Lockdown
Bajaj Auto management earlier has proposed salary cut for all employees with its MD Rajiv Bajaj himself to take 100 percent pay cut for the extended lockdown period till May 3.
Bajaj company on Sunday said in an internal letter to its employees that it will not implement its proposed decision to observe a pay-cut across the organization for April and assured them of complete payment for the lockdown period.
“We have come to the conclusion that this is a time when we must act more from our hearts than from our minds,” read an internal letter from the company’s human resources department.
“Our business depends first & foremost upon each & every one of us, from the top to the bottom. Thus, before we reach out to support our larger society, we are obliged to first secure our own; so long as we can help it, not a single child of the last contract worker must sleep hungry on our watch.”
A fortnight after announcing that he would be forgoing 100% of his salary to help keep the company and its employees afloat, the MD’s Human Resources department released a letter last weekend that firmly enforced an ‘employees-first’ approach to managing the coronavirus crisis.
Read The Letter
Dear Colleagues, Friends,
‘The heart usually knows what to do. The challenge is to silence the mind’.
Today, in the context of the proposed organisation wide voluntary wage cut for 15th – 30th Apr 2020, we discussed the argument for reciprocity in the relationship between an organisation & its employees ie that just as both share in the gain in the good times so must they also share in the pain in the bad times.
Equally we asked ourselves whether a large & profitable company like Bajaj Auto ought not to cushion against the impact of this pandemic & the associated lockdown it’s people who have earned it the distinction of becoming the World’s Favourite Indian, with industry leading metrics.
We have come to the conclusion that this is a time when we must act more from our hearts than from our minds.
Our business depends first & foremost upon each & every one of us, from the top to the bottom. Thus before we reach out to support our larger society, we are obliged to first secure our own; so long as we can help it, not a single child of the last contract worker must sleep hungry on our watch.
We have hence concluded that everyone including all of the contract labour engaged by us will be paid their full salary for Apr 2020. We will next review this matter towards the end of May taking into account the degree of positive impact on our business of the implementation of the progressive unlocking that is anticipated.
So for the moment, without the added burden of any wage related financial stress, we can hopefully better focus all of our energy on the safety & well being of our families.
And then, as soon as we’re open for business, we shall as always as one spirited team have Bajaj Auto roaring back upon global roads full throttle!
We send you our love, prayers, & good wishes.
Managing director Rajiv Bajaj had decided to forego his entire salary for the period – along with cutting costs in marketing, travel and other key business activities, this managed to save the company a reported 150-200 crores by the end of April.
The managing director also urged the Narendra Modi government to correct the new safety and insurance norms, which have raised the cost of vehicle ownership.
Automotive companies recorded no domestic sales for the month of April as all the manufacturing plants had fallen silent since the last week of March.