News: Bajaj Auto reverses decision of 10% wage cut

Compensation & Benefits

Bajaj Auto reverses decision of 10% wage cut

Earlier, the company had proposed a 10% wage cut across the board on account of the lockdown due to the COVID-19 pandemic.
Bajaj Auto reverses decision of 10% wage cut

Two- and three-wheeler major Bajaj Auto has reversed its decision to observe a 10% pay-cut across the organization for April on account of the lockdown due to the COVID-19 pandemic. The firm has now assured complete payment to its employees for the lockdown period.

An internal letter from the company’s HR department says, “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.”

The letter further stated that everyone including all of the contract labor will be paid their full salary for April 2020. The firm will next review this matter towards the end of May taking into account the degree of positive impact on its business once the lifting of the lockdown begins.

For now, without the added burden of any wage-related financial stress, the firm wants to hopefully better focus all of its energy on the safety & well-being of its employees.

In addition, the company also said a large and profitable company like itself should cushion against the impact of this pandemic onto its people. The reversal will be a much-needed relief for its employees but is also a tough step given the fact that automotive companies recorded no domestic sales for the month of April on account of halting of manufacturing activity since the last week of March.

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Topics: Compensation & Benefits, #COVID-19

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