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BUSINESS
Will employer-employee relationship tackle job-cut problem?
By
Devajit Mahanta
SO FAR IN DECEMBER, companies across the world have announced at
least 115,000 job cuts, a figure which translates into an average of more
than 8200 people laid off a day. According to US Labour report, US economy
lost a staggering 5,33,000 jobs in November and the unemployment rate
shot-up to a 15-year high of 6.7 percent. Faced with shrinking global and
domestic demand and a crippling cash crunch resulted in negative growth in
Indian textile industries, about 30-35 percent in volume terms and also
resulted in 7 lakh people losing their job so far and 5 lakh more are set
to lose their jobs in the next three months. The Indian textile industries employ
more than 35 million people overall. The Confederation of Indian Textile
Industry has urged the Government to release Rs 20 billion which is pending
under the technology modernization funds besides providing other supports
to tide over the present crisis.
A week back, Prime Minister Manmohan Singh met India’s top industrialist at
India Inc CEO’s met and requested for an assurance from them that job cuts
will be the last resort. After that to change the economic crisis and job
market, the government declared a bunch of rate cuts by the RBI and several
monetary policies.
Job cuts is not a way out of the economic slump. Although it might look
good at first from company point of view, it is far more costly affair in
the long run for the company as well as the country. Instead of lay-offs,
company should cut the salaries of top-end professionals. If a person who
earns Rs 5000 per month is jobless everything is at a standstill, it’s not
only the person that suffers but the entire family. So companies, before
showing the pink slip, need to question themselves whether it is really
required or are we just following up the western style? Massive layoffs and
across the board salary cuts without distinction between performers and
non-performers could be counter productive for the company. Thus, corporate
entities should use discretion for the best health of the company to
identify performers and retain them it for long-term returns. Maybe due to
rapid growth many young people take too much loans and debt, which left
very few to keep some aside for a rainy day or rainy months. Just a little
initiation for saving habits would surely save such tragic situations
rather than going to blame others and not to take any responsibility for
our own greed and actions.
Sometime due to mis-adventure fall-outs happen like Tata’s acquired Corus,
Jet airways tried Sahara, Tata’s NANO
project at Singur. For all the fallouts who should be held responsible and
how economic crisis came into effect? Company has to do a failure analysis
to find out from where this has started and punish the guilty and save the
people who are not involved. So, time for our business barons also to catch
their high profile heavily paid officials for their bad credit and further
disturbed to entire globe.
On November 26, India’s worst ever coordinated terrorist attack on Mumbai
pushed up geopolitical risk perception and drove away, indirectly, lots of
youth jobs due to shut down of many foreign link units. The government
immediately shunted the Chief Minister and the Deputy Chief Minister to
change the situation. But in a State where is the need of Deputy Chief
Minister; already there are job cuts. It is high time for the government
also to do a little cuts in the government as well.
Even in the times of layoff, parents and girl have become wary of marrying
techies. They are giving preference to boys those in civil services,
teaching, research and innovation. So marriage market has skewed against
the IT employees.
Every company’s first and foremost fundamental goal is to make their
company profitable and look after their shareholders. Only after achieving
both, the company can think about social responsibility. To protect this
two, a company should re-engineer as well as retrench non-performing,
non-essential and redundant employees and identify performers and retain
them for long-term returns.
Readers can send their feedback at devajitmahanta@gmail.com
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