TCS Layoff Saga: Employees Strike Back, To File Case Against Mass Sacking
As per recent reports coming in from various sources, it has been revealed that a group of TCS employees have met Deputy Labor Commissioner in Bangalore and a case would be filed against the management against mass layoffs in the company.
We have earlier reported that how TCS plans to give pink slips to 25,000 – 30,000 employees, under the label of ‘restructuring process’. We had debated that firing 10% of a company’s total strength is not a restructuring process but a bloodbath, where the future of thousands of employees are at stake.
One of the TCS employees working at the Electronic City campus spoke with The Hindu and said, “In the restructuring process, employees are asked to sign voluntary resignation letters. We are given a one-month notice period, and are not being given eligible compensation,”
Another employee, who is an Assistant Consultant, said, “First they remove you from the project, and later will ask you to leave the company.”
Sripada, Deputy Labour Commissioner of Bangalore assured assistance and support for the employees as per the existing Labor Laws, as he said: “Employees have not filed any formal complaint about the issue. Once we receive it, we will take appropriate action.”
TCS Management, on the contrary, has refused to accept this mass layoffs as a serious matter, insisting on the story of corporate restructuring as a normal thing to happen. In a recent statement issued by TCS CEO N Chandrasekaran, he termed 2014 as ‘another exceptional year’ for the company.
In the New year message for all their employees, he said, “In the first half of FY2014-15, our revenues grew 17.3 % to $ 7.62 billion on a year-on-year basis and our net profits grew 19.1% to $1.71 billion as we maintained our operating and net margins in our desired range.”
The HR team is sending these letters to the employees, assuring them that there are no layoffs: Here are 2 letters that we have received (through comments or separately)
Letter 1: From Joy Mukherjee, EVP & Head. Global HR
New Year Message from N Chandra, CEO & MD
But the question is, if TCS had such a wonderful year in terms of revenues, then why are they indulging in mass layoffs? If we consider the statements issued by the TCS management, then we will find that a fast growing company is well on its way to achieve all their targets. But if we read some of the comments and observations made by TCS employees spread all over the country, then we will find some startling revelations.
Here are some reactions and reasons for this layoffs, as shared by TCS employees (ex and current both): [Note you can read over 200 comments here.]
Besides the anger against the top management, there are issues related with racism, partiality for female employees, issues with appraisal and more inside TCS. But the majority of comments indicate that increasing profits is the core intention of the current TCS management, and in that view, they are totally ignoring the plight of their employees. The current layoffs can be described as a cumulative effect of all these factors.
During the dark days of the 2008 recession, Ratan Tata had refused to layoff even a single TCS employee. But currently, when the revenues of the company are increasing, business is growing and profits are showing encouraging signs, there exists several unanswered questions regarding this mass layoffs in a company which symbolizes Indian power in the IT industry.
On 7th of January 2015, 100s of workers belonging to New Democratic Labour Front assembled in Chennai IT Corridor to show solidarity with TCS employees. They called on IT employees going to their morning work to join Trade Union and protect their rights, by distributing thousands of pamphlets. Here is the video of the protest.
Police intervened and tried to prevent the workers. But, workers asserted that campaigning against the mass layoff by TCS is their democratic right and continued pamphlet distribution.
Will Ratan Tata intervene now and save the company?