JK Tyre Chairman and Managing Director (MD) Raghupati Singhania on Tuesday announced that he along with whole-time directors will be taking a voluntary cut in salary of 25 percent. The senior management personnel will have to face a voluntary reduction in their salary by 15- 20 percent amidst the novel coronavirus pandemic that has hit the domestic automobile industry hard. This pay cut also applies to its global operations.
The move comes four days after Apollo Tyres, India’s second largest tyre producer, announced that its senior management will be taking a pay cut of 25%.
"Presently we are witnessing unprecedented difficult times, with both sales and profitability getting impacted due to coronavirus," JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said in a statement.
Singhania further said the company has also taken extensive steps to ensure the safety and welfare of its employees and their families.
The tyre industry has been passing through difficult times owing to unprecedented slowdowns and disruption in supply chain, aggravated by the impact of COVID-19 pandemic. It is anticipated that the situation may worsen further, the company said.
The pandemic has forced every two and three-wheeler, car, truck, bus, electric vehicle and earth moving producing company to shut production at least for a week. Many auto component suppliers have also shut down over the past few days. In these tough situations, the management taking a pay cut will act as a reassuring step for the employees.