Archives- News Updates On February

Meltdown to snatch jobs of Syntel staff

IT services and knowledge outsourcing (KPO) firm Syntel is on the verge of retrenching its employees in its centres at Chennai, Mumbai, Pune and the US. Sources reveal that close to 100 employees have already been asked to leave from a total of 12,363 in India. It is expected that around 1000 employees are slated to leave the company in some time.

Source: Business Standard, February 28, 2009. “Syntel looks to lay off employees” Page No. 4

Students at IIM Ahmedabad bag jobs worth Rs 1 crore

Beating recessionary trends, about 10 students of IIM Ahmedabad have been successful in grabbing placements from international investment banks like Goldman Sachs and Barclays worth Rs 1 crore. On the third day, it was the participation of domestic marketing companies, commercial banks and brokerage firms like Hindustan Unilever Ltd and Procter & Gamble that made the campus outperform its counterparts.

Source: The Times of India, February 28, 2009. “Meltdown? 10 IIM grads get a crore” Page No. 6

Govt employees in Guj to get 20% hike in salaries

Due to the pressure of upcoming elections, the Gujarat government has finally given the nod for the implementation of the Sixth Pay Commission recommendations of 2% raise in the salaries of government employees. This decision is likely to benefit 2.4 lakh people but would increase the expenditure of the government by Rs. 1500 crore.

Source: The Times of India, February 28, 2009. “Sixth pay panel salaries for PSUs” Page No. 10

Central govt employees get a 6% raise in DA

The Union Cabinet implemented a 6% hike in Dearness Allowance for all central government employees with effect from January 1, 2009. With this, the government will have to face an additional cost of Rs 6000 crore with an existing expenditure of Rs 29000 crore. The government is also likely to reduce central excise duty by a further 2%.

Source: The Economic Times, February 27, 2009. “6% hike in DA for Central govt employees” Page No.1

Recession hit jobless Indian workers return home

For the 20,000 Indians who have returned home after losing their jobs overseas, the government has made arrangements for protecting their interests by signing bilateral agreements. Besides looking forward to change the Immigration Act, it also will be holding talks with foreign countries to reduce incidents of employers retaining workers’ passports and non-renewal of their visas.

Source: Business Standard, February 27, 2009. “20k Indians return after losing jobs” Page No. 2

IIM students opt for domestic offers in the ongoing placements

Unlike last year, some IIM students have rejected international job offers worth Rs 1 crore this year, owing to reservations on H-1B visas. Already reeling under recession, due to this, not all 33 international offers were accepted at IIM Calcutta this year which had recorded Rs 1.36 crore as the highest package in the preceding year.

Source: The Financial Express (Corporates & Markets), February 27, 2009. “IIM graduates reject international offers” Page No. 8

At IIM-C, students look forward to second phase for job offers

207 students of IIM Calcutta from a total of 265 were recruited by finance, consulting, marketing and IT industries in the first phase of the recruitment season this year. Although financial firms like McKinsey, BCG, Frost and Sullivan, Merrill Lynch, Barclays Capital and Morgan Stanley ruled the event, 25% of the students were snapped up by the consulting firms.

Source: The Economic Times, February 27, 2009. “IIM-C fails to place all in phase of hiring” Page No. 15

Marketing and IT firms dominate second day of placements at IIM-A

The economic downfall has heavily impacted the placements at IIM Ahmedabad with only 20 companies turning up, most of them being marketing and IT firms like Proctor & Gamble, Hindustan Unilever and Nokia. Not only has the number of job offers for individual students declined sharply, but there is a fear of dip in their average salary as well.

Source: The Economic Times, February 27, 2009. “Marketing, IT cos line up on Day 2” Page No. 2

Day zero of placements leaves unhappy faces at IIM Ahmedabad

With global recession taking its toll on placements at IIM Ahmedabad, only 20 students from a total of 200 received job offers on the first day as compared to 50 offers last year. Although better than their counterparts in Kolkata, banks were conspicuous by their absence on day zero of placements. Most of recruiters were consulting firms who did not divulge salary details.

Source: The Times of India (Ahmedabad Mirror), February 26, 2009. “IIM placement scene is ‘sad’” Page No. 2

Industries in Gujarat might lay-off workers to raise wages

Although the Gujarat government has instructed 49 industries to implement a hike of more than 20% in the wages of workers, the companies are apprehensive of the lay-offs that they might have to undertake to cover the burden of Rs 3200 crore. The hike which was suggested in 2008 has not been implemented and owing to the current crisis, the industries are postponing this decision again.

Source: The Economic Times, February 26, 2009. “Govt asks industries to raise wages” Page No. 3

SEZs can reduce job losses on a national scale

The soon-to-be set-up Special Economic Zones throughout the country will generate employment for over 3.62 lakh people. Nearly 40% of those benefited will be women thus creating more job opportunities. Companies making heavy investments into these zones include Infosys, Wipro, Satyam, HCL, L&T, Reliance, Adani Group, Suzlon, Welspun, DLF, Parsvnath, Wockhardt, K.Raheja Ranbaxy and TCS.

Source: The Financial Express, February 26, 2009. “SEZs: creating job opportunities” Page No. 11

Labour Ministry and EPFO present ‘inflated and imaginary’ data on pensioners

A parliamentary committee has recently slammed the Labour ministry and the Employee Provident Fund Organisation (EPFO) for not knowing the exact number of pensioners in the country. EPFO had presented two different figures of 2.95 million and 1.52 million, which didn’t even include the new entrants as they were below 37 years of age and very few in number.

Source: Business Standard, February 26, 2009. “Labour Ministry, EPFO ‘clueless’ on number of pensioners” Page No. 2

Trade unions unhappy with 8.5% EPF rate

In spite of providing with EPF at 8.5% rate of return and loosing out on Rs 139 crores from its contingency reserves, trade unions have expressed their discontent over the interest rate. The trade unions have demanded that the rate should be increased to 9.5% and blame their policies for offering fewer returns towards the Special Deposit Scheme.

Source: Business Standard, February 25, 2009. “8.5% interest rate to stretch EPF coffers” Page No. 2

Outdated manpower planning strategies in the military

The Ministry of Defence (MoD) was recently slammed by a parliamentary standing committee for its recruitment process as it faces a shortage of staff of 23.8%, 16.7% and 12.1% in the army, navy and the air force respectively. Although large numbers of students apply for the army examinations, the reasons for the unpopularity of military services were the negative recruitment approach, early retirement, frequent transfers and a more lucrative private sector.

Source: DNA, February 25, 2009. “Panel blasts recruitment style of armed forces” Page No. 8

Appointment process for judges under scrutiny as govt justifies salary hike

Terming the hike of 300% in the salaries of judges to be nominal considering the ‘dignity of the office of judiciary’, the government of India is of the view that serious thought needs to be given to the quality of recruitment. But as an existing panel of judges selects new judges in India, it is difficult for the Bar to expose corrupt and inexperienced judges.

Source: DNA, February 25, 2009. “300% hike in salary of judges is nominal: Govt” Page No. 8

Gujarat lags behind in employment generation

In spite of drawing large investments in industries last year, Gujarat has been placed 9th in Human Development Index due to disproportionate increase in jobs. The State government’s inability to reorient business focus from producer of intermediate goods to finished goods for the end-user is largely responsible for its failure in contribution towards social development and employment generation.

Source: DNA (DNA Money), February 25, 2009. “Guj industries growing but not jobs” Page No. 4

Govt to set up 50,000 skill development centres for job-seekers

To improve the employability of job seekers, the Indian labour ministry is contemplating to set up 50,000 skill development centres under a pilot project on PPP mode across the country by the middle of the year. The projection for the skill development sector is at around Rs 22,000 crore in the Eleventh Plan and the govt has already allocated the required amount.
Source: Business Standard, February 24, 2009. “Ministry plans training centres for job-seekers” Page No. 2

ILO gears up to diminish the impact of economic slowdown

In the latest meeting of the International Labour Organization held at Manila, the participants laid more emphasis on reaching all levels of society to beat the recession. Their discussions included protecting jobs, providing support to rural and agricultural economy and to groups like migrant workers, informal sector workers, women and young people and also included collective bargaining and social dialogue for negotiating wages, temporary lay-offs and severance packages.

Source: The Financial Express, February 24, 2009. “Preserve jobs to tackle recession, says ILO” Page No.4

Employment guarantee scheme to be extended to urban areas

With the latest ILO report on job losses calling for labour intensive measures to check poverty alleviation in rural areas, the government is set to introduce an employment guarantee scheme for urban areas on the pattern of NREGS. According to the Labour and Employment Secretary Sudha Pillai, this programme aims to focus upon the construction sector and check reverse migration to rural areas.

Source: Business Standard, February 23, 2009. “Govt mulls job guarantee scheme in cities” Page No. 2

Shipping companies lay off staff to survive the sinking economy

With US and Europe being severely hit by recession, the exports and freight charges for the shipping industry have registered a fall of 60% and 75% respectively. The Mediterranean Shipping Company and 35 other shipping companies have been compelled to lay-off its staff and opt for low-value cargo and are loading and unloading at shorter distances to battle economic meltdown.

Source: The Indian Express (Express Newsline), February 23, 2009. “Shipping firms lay off 35% staff to remain afloat” Page No. 2

IIM placements preponed

Although the official placement data at IIMs claims that the pre-processes by companies and final interviews will take place in March, the placement has suddenly been shifted ahead of schedule. With all IIM campuses following independent approach to finalize placement dates largely because of the uncertainty created by recession, every institute is competing to place as many students as possible.

Source: The Times of India, February 23, 2009. “Placement: IIM go for ‘speed dating’” Page No. 4

Government announces bonanza for employees with 8.5% EPF rate

With elections round the corner, the labour ministry is set to declare the Employees’ Provident Fund (EPF) rate for 2008-09 at 8.5% even though the scheme’s income can only support an interest payment of only 8.25%. To retain the rate of 8.5%, a gap of Rs 140 crore needs to be bridged. Like the ‘investment fluctuation account’ that was used in 2007-08 to bridge this gap, a hidden account would be created due to faulty contributions from the employers this year as well.

Source: The Financial Express, February 22, 2009. “Crisis-hit workers to get poll sop; PF rate to be 8.5%”

Single-digit raise in Indian salaries, highest in Asia-Pacific region

Global recession has brought down the hike in Indian salaries from 13.3% in 2008 to 8.2% in 2009. The increase, highest in the Asia-Pacific region, is expected to fall further except in FMCGs, consumer durables, telecom and pharmaceutical sectors. HR consultants-Hewitt Associates reported that 16% of the 480 companies surveyed have frozen their salaries and reduction in salary hike was observed almost at all employee levels except the general staff and manual workers.

Source: Business Standard, February 20, 2009. “India to see single-digit salary hikes for the first time in 6 years” Page No. 1

RBI staff protests against pension reduction

The United Forum of Reserve Bank of India Officers and Employees, who have observed mass casual leave on Friday, brought all banking services to a halt because of a new pension scheme introduced for retired employees with effect from 1.11.2002. The new scheme witnesses Rs 1,000 to Rs 6,000 per month decrease in the pension of 4000 retirees of the RBI.

Source: The Indian Express (Express Newsline), February 20, 2009. “Pension issue: RBI United Forum on mass leave today” Page No. 2

Only Indian pilots to fly domestic airlines

With the civil aviation minister’s latest move to replace foreign pilots by July 2010, full-service carriers like Jet Airways and Kingfisher along-with low-fare airlines like Spicejet and IndiGo are set to recruit more local pilots. Although India has shortage of pilots trained to fly large aircraft, they aim to increase the pay packages for the local pilots at par with their foreign counterparts to fill-up the 1000 odd positions of foreign pilots.

Source: The Economic Times, February 20, 2009. “Domestic airlines gear up for massive recruitment” Page No. 7

More IIM A graduates to bank on their entrepreneurship skill this year

With more students opting for entrepreneurship at IIM placements, there are various ventures that might find place in the market this year. The businesses range from clean energy drawing on agricultural waste, solar energy to address energy requirements of households and large companies to that of websites for ordering food online.

Source: The Economic Times, February 20, 2009. “IIM A grads take route to entrepreneurship” Page No. 3

Marketing sector to replace financial sector at IIM-A placements

With global meltdown adversely affecting the recruitment patterns of various industries, even those at IIM A have been affected. The job offers for final year students of post-graduate programmes have not disappeared but reduced in comparison to those of the previous year. Instead of taking up jobs in the financial sector, students might take up marketing jobs or move towards entrepreneurship as well.

Source: The Times of India, February 19, 2009. “Marketing sector likely to dominate IIM-A placements” Page No. 2

Political parties score over companies for IIM students

Many IIM students are gearing up to intern at political parties rather than mainstream companies especially with courses like ‘constituency management’ being run in the institute. While Harsh Vardhan Chapparia of IIM Calcutta is set to intern with BJP PM candidate L K Advani, Chepuri Krishna of IIM Ahmedabad initiated the trend of internship with political parties after attending a guest lecture of CPM leader Sitaram Yechury.

Source: The Indian Express, February 18, 2009. “IIM students sold on Brand Politics” Page No. 7

Recession-proof Pharma sector faces shortage of brand managers

In times of high job losses the supply and demand gap of brand managers in the pharmaceutical sector is between 15% and 20 %. The pre-patent era of this sector witnessing expansion of brand portfolios has led to a shortage of managers who specialize in product branding and technical understanding of pharmaceutical products. Moreover, companies are even ready to provide with high pay and training for the jobs.

Source: The Economic Times, February 18, 2009. “Pharma companies bullish on hiring brand managers” Page No. 3

Companies optimistic on base salaries of employees

Of the 48 Indian companies surveyed across 22 sectors, 69% expect the base salaries to remain the same. All this is because the base component of the salary is estimated by considering factors of short-term incentives like individual performance, company performance and comparator/market practices and long-term incentives like strategic contribution, potential of employees, total remuneration and the executive’s level in the organization.

Source: Business Standard, February 17, 2009. “Firms don’t expect base salary fall in 2009” Page No. 2

IT companies to recruit students in the final semester

With IT firms heading for just-in-time hiring, students will have a year more to prepare themselves for the placements leading to a shorter period of uncertainty in employment. Many IT firms under Nasscom are taking this cost-effective move to inform colleges to post-pone placements as they find it difficult to ascertain the firm’s growth due to the global meltdown which is building a pressure on the projects in the pipeline.

Source: The Economic Times, February 16, 2009. “IT firms rejig plan for campus hiring” Page No. 5

Severely hit by recession, many retail firms slashing staff

Due to sharp fall in sales, many retail chains in Ahmedabad are downsizing and shutting their firms. Reliance Mart and Future group are restructuring their retail formats. Retail chains like Indiabulls, Subhiksha and Spencer’s have closed their outlets in the city. It has given a severe blow to almost 10,000 employees from the lowest to the senior level in the retail sector rendering them jobless.

Source: DNA, February 16, 2009. “10,000 employees thrown away by A’bad retail sector” Page No. 1

Internet makes it easy for employers to recruit tribal job-seekers

Many employers including those from IT, agro-processing, hotel sectors have shown their interest in recruiting tribal youths on the basis of their online details like family profile, educational qualifications, current employment, earnings, choice of job, and willingness to migrate. 'Migration and Skill Assessment of Tribal Youths' one such survey conducted by Tribal Research and Training Institute (TRTI) of Gujarat Vidyapith covered 3.69 lakh tribal youths, across 12 district of Gujarat.

Source: DNA, February 16, 2009. “Tribal job-seekers get internet help” Page No. 6

Railways survive economic slowdown but hit by salary rise

It is good news for the railways as the estimates of the passenger earnings and those of the upper class passengers in railways show an increase of Rs 649 crore and Rs 800 crore respectively. This has been the result of many air travelers switching to railways. But with the Sixth Pay Commissions’ regulations regarding salaries, the expenses have increased by Rs 5000 above the budget estimates.

Source: The Times of India, February 14, 2009. “No slowdown here, but salaries a burden” Page No. 14

Maharashtra to introduce health schemes for below poverty line (BPL) people

Under the new health insurance scheme that the Maharahtra Government plans to launch, an estimated 52 lakh drivers and workers living in the state below poverty line (BPL) would avail of cashless smart card with biometric features by the insurance company. The maximum sum assured by the insurer under the scheme has been capped at Rs 30,000 for their treatment in either private or government hospitals.

Source: The Financial Express (Corporates & Markets), February 14, 2009. “Maha to launch insurance schemes for drivers, workers” Page No. 2

Jobless diamond workers don’t have much hope of social security cover

With most of the diamond units in Surat not registered under the mandatory Factories Act besides the Employees’ State Insurance Scheme (ESIS), Workmen Compensation Act (WCA), and Employee Provident Fund scheme (EPF), chances are less for them to receive compensation. ESIC officials have anonymously claimed it to be a result of government’s lax behaviour and its confusing policies and have also refused to provide any benefits to the workers.

Source: The Indian Express (Express Newsline), February 14, 2009. “Social security net can do little for diamond workers” Page No. 1

RBI to minimize diamond industries’ stress

For covering the huge economic losses due to the ongoing recession, RBI will be forming a task force to provide with practicable recommendations for mitigating the difficulties. It aims to ensure better condition of the diamond industry, adequate availability of liquidity in the system and maintain conditions conducive for flow of credit for all productive purposes, particularly to housing, export and small and medium industry sectors.

Source: The Financial Express, February 13, 2009. “RBI plans task force for Gujarat diamond biz” Page No. 2

All IRMA students succeed in getting placements

Almost 40% of the students were recruited before the placement season begun in Institute of Rural Management-Anand. The average pay was Rs. 5 lakh and highest pay offered was Rs 7 lakh per annum which was less by Rs 4 lakh from the figures of the last year. It witnessed participation of governments of Gujarat and Bihar too

Source: The Indian Express (Express Newsline), February 12, 2009. “100 percent placements at IRMA” Page No. 5

Pay review committee to set up new pay scales for IIT, IIM

The Pay Review Committee which recently submitted a report regarding improved pay packages for the faculties of Central technical institutes like IIT and IIM to the HRD ministry aims to achieve improved faculty quality by benefitting the teaching staff of 10000 people. This will also facilitate in filling up of the vacant post in these institutes.

Source: DNA, February 12, 2009. “Pay panel favours better package for IIT, IIM faculty” Page No. 9

Indian IT sector poses a grim look for its employees

In the annual Nasscom Leadership Summit in Mumbai, CEOs of Infosys Technologies, HCL Technologies and Tata Consultancy Services discussed the delayed impact of economic downfall in their companies. With the disparity in the revenues and the expenses increasing and income declining, these firms plan to maximize their savings and postpone investments. This also would result in job cuts for the existing staff.

Source: DNA (DNA Money), February 12, 2009. “Now IT begins to talk job cuts” Page No. 1

Textile sector to create 17.4 million jobs by 2012

On discussing the job losses of 10 lakh people and 84% fall in the exports in the textile sector, Union minister Shankersinh Vaghela claimed that the sector will generate 17.4 million jobs by setting-up 40 parks with annual goods production capacity worth Rs. 38,115 crore. He also cited rupee depreciation to be the reason behind increase of exports.

Source: The Economic Times, February 12, 2009. “Vaghela predicts 17.4 m jobs in textiles by 2012” Page No. 2

Economic meltdown forces Sasken to deduct salaries

With market undergoing a downfall, Sasken Communication Technologies in Bangalore has stopped recruiting new people to save on the company’s cost. Moreover the existing employees and those recruited last year were instructed to come only thrice in a week so that the company could save 40% of the cost through their salaries.

Source: Business Standard, February 11, 2009. “Sasken resorts to pay cut, fewer work days”

Labour minister to estimate unemployment status for contract labourers

According to labour minister Nawab Malik almost 1.5 lakh contract labourers were rendered jobless in 2008 in Maharashtra. The state government's policies for industries, besides recession are also to be blamed for this situation. However the labour minister has requested the chief minister to take the necessary steps for diminishing the problem.

Source: The Times of India, February 11, 2009. “Labour minister seeks CM’s help to check unemployment”

Preference to be given to ‘sons of the soil’ in railways

In a recent meeting with the railway authorities the chief minister of Maharashtra, Ashok Chavan requested them to employ more local workers for their vacant posts especially those with authentic domicile. Other discussions held were pertaining to setting-up of octroi, support to encroachers, water-supply and maintenance facilities at several stations.

Source: The Times of India, February 11, 2009. “Recruit more locals, Chavan tells railways”

Statistics show 1.5 lakh job loss in Maharashtra

According to the Labour department of Maharashtra 1.5 lakh people have been reported to have lost their jobs in the past few months with automobile ancillary, engineering and construction sectors being severely affected. But the labour minister holds this to be false and claims that there would be demand for 50,000 guards over the next six months to one year.

Source: The Times of India, February 11, 2009. “Maharashtra sees 150,000 job losses”

Recruitment panel to select candidates for coveted posts of AMC

AMC will have an expert panel within three months, consisting of members from leading urban planning institutes like IIM A to screen first class graduates and professional degree holders for eminent posts. This came in wake after the retirement of deputy municipal commissioner ZK Sancha, Devendra Makwana and TG Jhalavadia who employed candidates with lesser qualifications for higher posts.

Source: The Times of India, February 11, 2009. “AMC to set up recruitment panel”

IIM A students apply for the not-so-hot sectors

With placement season going on in IIM A, students are seen applying for several posts in the micro-finance, social sector, and small and medium enterprises (SMEs) that offer maximum stability. As the finance sector is adversely affected by the meltdown, more students are also looking at entrepreneurship.

Source: The Times of India, February 11, 2009. “Meltdown shrinks big dreams at IIM-A”

Indian banking sector in a compression mode

Eyeing the current global recession, private sector banks like ICICI, Kotak Mahindra and Credit Bank are contemplating to reduce their workforce and go slow on expansion. They don’t aim to disturb the wage structure of the workers but their bonus quantum is under review. Due to increasing non-performing assets, banks plan to prioritize capital conservation, liquidity management and risk containment to lighten the balance-sheet.

Source: The Financial Express (Corporates & Markets), February 11, 2009. “Private sector banks downsize workforce” Page No. 1

Significant rise in per capita income due to double-digit inflation

Per capita income (PCI) measured at current prices would see a growth of 14.4 percent according to the government’s advance GDP estimates. The growth rate has increased to 7.6% in the last year mainly because of the high average of inflation in the current year leading to an income of Rs 100 a day for the average Indian.

Source: The Indian Express, February 10, 2009. “For first time, average Indian earns more than Rs 100 a day” Page No. 17

District Employment exchanges find market scenario to be stable

In the wake of the global economic slump, only industries like the engineering and pharmaceutical industries are witnessing a boom. The educated youth working in these avenues are not as badly affected as the daily wage labourers of chemical, trading and diamond industries. Vijay Wargia, District Employment Officer has witnessed that the registrations in the recruitment drives were the same as it used to be prior to the market fall.

Source: The Indian Express (Express Newsline), February 10, 2009. “Recruiters see a beam of light at the end of meltdown tunnel” Page No. 3

Tough time for ‘Job portals’ during recession

Major job portals like naukri.com, monster.com and timesjobs.com have reported that the financial sector in Gujarat is doomed with recession. They claim that sectors like pharmaceuticals, agriculture, education, health, telecom, travel and government are decently surviving the odds. The companies, on a retrenchment spree, are also looking forward to replacements but the process is very slow and skill-specific. This has brought the expansion plans of the portals to a halt too.

Source: The Indian Express (Express Newsline), February 10, 2009. “Job portals record high traffic post meltdown; call it an era of ‘change’ ” Page No. 3

Ensuring smooth launch of new pension plan

For the New Pension Scheme, the Pension Fund Regulatory and Development Authority (PFRDA) have short-listed six fund managers to manage citizens’ pension and have major contenders like SBI Pension Fund, ICICI Prudential Life Insurance, IDFC Mutual Fund, Kotak Mutual Fund and Reliance Capital AMC as the service providers to collect the pension contributions. Currently the scheme allows up to 15% investment in equities but PFRDA aim to utilize a further 10% equity window.

Source: The Financial Express, February 10, 2009. “New pension plan set for smooth launch” Page No. 3

Recession to snatch away 50 lakh jobs

The Indian National Trade Union Congress (INTUC) in its 272 working committee meeting in Surat claimed that the recession will slowdown in 2010 snatching away additional 50 lakh jobs in 2009. They demanded that the workers should concentrate on work and the government should promote industries like infrastructure, health and education which to accommodate recession hit people.

Source: DNA, February 9, 2009. “50 lakh job cuts in 2009” Page No. 6

Sacking of 40% staff to create Rs. 5000 crore

On reviewing the recommendations of Sixth Pay Commission, it was found that 20% staff cut was suggested for saving of Rs. 5000 crore. If only 50% retiring staff is replaced in 4 years, 5% will automatically reduce. And if this trend is followed for 10 years it would reach 20%. However, according to the State Gazzetted Officers Federation, there are no such plans of downsizing as it is already understaffed.

Source: DNA, February 9, 2009. “6th pay review panel for 20% staff cut” Page No. 9

Goods and Services Tax to improve India’s economic efficiency

According to Chairman of 13th Finance Commission Vijay Kelkar, the current tax system with myriad distortions favours some goods and services at the expense of others. Launching of Goods and Service Tax would result in a macroeconomic dividend and the effective revenue neutral rate will be far lower than 30%. It would eliminate the export of taxes and improve international competition, leading to increase in the demand for employment in labour-intensive industries.

Source: The Financial Express, February 9, 2009. “Adopt GST, it will provide stimulus to economy, create more jobs: Kelkar” Page No. 4

Jobless diamond workers turning to cultivation for survival

The jobless diamond workers are turning towards villages to take up cultivation of cumin seeds through khet talavdis for leading a decent life. The workers who made Rs 48,000 and Rs 60,000 previously now make over Rs 1.5 lakh in just four months cultivating cumin seeds. Some of them are also seeking grants from Gujarat Land Development Corporation for digging khet talavdis to sow the winter crop in saline land.

Source: The Times of India (Ahmedabad Mirror), February 9, 2009. “Cultivation boost to jobless diamond workers” Page No. 2

Employment exchanges of Gujarat perform best across India

The employment exchanges in Gujarat rank first as compared to their counterparts from other states in providing maximum number of jobs. Gujarat with 41 employment exchanges, has surpassed its own record by helping 1.91 lakh youth get jobs in 2007 and 2.25 lakh youth in 2008. This is primarily because they analyze the industry requirements and provide vocational training to its applicants.

Source: The Times of India, February 8, 2009. “Need job, Employment exchanges in Gujarat best bet” Page No. 1

Recession-hit expatriates to be rehabilitated by Central Govt

The Indian government would suffer a double blow with the return of the expatriates from abroad. According to the Non-Resident Keralites' Affairs (Norka) department over 25 lakh Keralites working abroad, majorly in West Asia, contribute around 19% of foreign remittance to national treasury. This has prompted the government to come up with a welfare fund for low-income expat groups.

Source: DNA, February 7, 2009. “Kerala puts expat rehab ball in Centre's court” Page No. 9

Gujarat Governor to step up for diamond workers

The Gujarat Pradesh Congress Ratnakalakar Diamond Cell has decided to appeal to the state governor to take measures in diminishing woes of the diamond workers. More than 10 lakh diamond workers have become unemployed and almost 71 workers and their family members have committed suicide due to financial crisis.

Source: The Financial Express, February 7, 2009. “Gujarat diamond workers approach governor” Page No. 8

Placements at IRMA not influenced by the economic slowdown

This year there has been an increase of 30% in the Pre Placement Offers for the students at the Institute of Rural Management-Anand (IRMA). Where the entire world is facing job cuts, in IRMA atleast 200 jobs are expected for its 100 students from food, commodity and dairy industries. Although their pay packages remain unknown but this upward trend is triggered by the shift in rural development policies.

Source: The Indian Express (Express Newsline), February 7, 2009. “IRMA placement remains unaffected by global meltdown” Page No. 1

Change in age limit for pension plan for widows

The Union Cabinet amended the pension plan scheme for widows below the poverty line by limiting the age group from 40 – 64 years. With this, pension benefits have been extended to widows above 40 years of age while preserving the enterprise to work for young women. Widows above 65 years of age are already covered under Indira Gandhi Old Age Pension Scheme.

Source: The Indian Express, February 6, 2009. “Cabinet amends BPL widow pension plan”

Jobless diamond workers to get accommodated in textile units

The Textile Commissioner, Government of India and industry entrepreneurs have come together to offer employment to jobless diamond workers in the garment, embroidery and powerloom manufacturing units. Initially, when under training, they would receive stipend of Rs 1,500 to Rs 2,000; but later they would earn Rs. 8000 monthly. These units, which are already facing shortage of 6000 workers, would also provide them with transportation facilities.

Source: The Times of India, February 6, 2009. “Textile units to bail out diamond workers” Page No. 8

Assam Government to provide health cover to 10 lakh tea workers

The Assam Government has decided to cover healthcare of over 10 lakh tea plantation labourers and their families through a Rs 150-crore public-private partnership (PPP) initiative. The government aims to invest Rs. 15 lakh per annum in 166 tea gardens of the state in the first phase this year, and has already signed MoUs with the owners of these gardens.

Source: The Indian Express, February 6, 2009. “Assam PPP scheme to cover 10 lakh tea workers”

UPA to have pro-people sops in its Interim Budget

With general elections around the corner, the United Progressive Alliance (UPA) in its interim budget will focus on larger fund allocations to skill development programmes in the rural sector. Besides, subsidies for training schemes for one member of rural Below Poverty Line (BPL) families are also in the pipeline. The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) is also eyeing an opportunity to woo the electorate on similar lines.

Source: Business Standard, February 6, 2009. “UPA to focus on rural jobs in Interim Budget” Page No. 1

Recession: 5 lakh jobs lost

In the last quarter, almost 5 lakh jobs have been reported to be lost in India. Not only have people lost their jobs but many of them had to accept a cut in their paycheck to survive the recession. This also led to a decrease in the capacity utilization. However, the Ministry of Labour plans to increase the working hours to 10 hours on a voluntary basis.

Source: The Economic Times, February 5, 2009. “Slowdown claims 5 lakh jobs in Oct-Dec: Govt report” Page No. 7

Government to introduce a uniform and transparent appraisal system for PSU staff

Under a new appraisal mechanism, the Centre plans to introduce the “Bell Curve Approach” in which only 10-15 % of the staff of the public sector units would be graded as excellent for their performance appraisal. Also, they would have to mandatorily sign MoUs which would form the basis of performance related pay for executives in these companies.

Source: The Economic Times, February 5, 2009. “New appraisal system for PSU staff to be in place soon” Page No.

Kingfisher pilots to sue the airline for reduction in salaries

The pilots of Kingfisher airlines have decided to sue the airline for the salary cuts and breach of contract pertaining to the slashing of the contractual hours from 70 to 55. The pilots, who earn Rs 3 lakh a month, claim that the salary deductions have been almost 25-30 %. However, the officials state the decrease has been only 4.5% in the gross salary.

Source: The Financial Express, February 5, 2009. “Kingfisher pilots to sue airline for salary cuts” Page No. 1

ONGC labourers on hunger strike

The contract labourers of ONGC in Gujarat are on a hunger strike from September ’08 as they demand that they be given proper salaries, provident fund and gratuity. They plan to extend their strike after February 6 if there is no hike in the meagre salaries of Rs 3,500 to Rs 4,000 that they receive.

Source: The Indian Express (Express Newsline), February 4, 2009. “ONGC contract labourers go on hunger strike” Page No. 3

Placement trends at IITs show new companies ushering in

The economic crisis has led to the emergence of new patterns in placements at IITs. In the absence of regular recruiters, companies like IBM and Morgan Stanley, core manufacturing companies like Airbus and state-run corporations like ONGC, IOCL, DRDO, Engineers India Ltd, NTPC and BPCL are flocking in to recruit students. The placement season, which has been extended till May, has also witnessed students applying for the Indian Air Force.

Source: The Financial Express, February 2, 2009. “IITs witness new placement patterns in economic crisis” Page No. 4

Gujarat state bureaucracy in need of young officers

The Gujarat government needs to recruit young officers at 143 odd vacant senior positions to inject new life into state machinery. According to the data retrieved from the Pension & Provident Department, 94000 officers are scheduled to retire in next 6 years. Paying heed to the situation, the additional chief secretary of General Administration Department (GAD) has ordered the filling up of key posts on a priority basis.

Source: DNA, February 2, 2009. “Vibrant Gujarat govt is short on youth power” Page No. 1

I-T department to hire more people after Satyam scandal

With new avenues of taxation like international taxation, Fringe Benefit Tax (FBT) and Securities Transaction Tax (STT) coming up, the Income Tax department has decided to increase its existing staff of 42000 personnel. The decision follows investigations into voluminous TDS returns of Satyam Computers and a recent report regarding cadre review and restructuring.

Source: The Hindu, February 1, 2009. “Satyam effect: I-T department to increase staff strength”