Archives- News Updates On June

Minimum wages under NREGA in Tamil Nadu are likely to increase

Beneficiaries of National Rural Employment Guarantee Scheme (NREGS) used to get Rs. 80 as minimum wages since 2005. However, now Tamil Nadu government has proposed to raise this minimum wage from Rs. 80 to 100. Also UPA’s government NREGA scheme guarantees 100 days of work in rural areas, which they plan to increase it to 150 days. In addition to this, it aims to introduce a new Helpline for making complaints with district collector.

Source:www.dnaindia.com, June 29, 2009. “TN plan to hike minimum wage under NREGS”

Ahmedabad job fair provided job opportunities to more than 300 candidates

A job fair organized by TOI Ascent and GESIA at Ahmedabad provided jobseekers an opportunity to gain employment. In this situation of economic slowdown, more than 300 candidates were hired by 13 IT and ITES firms from Ahmedabad and Vadodara. According to the organizers, almost 40 percent of the candidates at the job fair were female, which was a new trend for IT and ITES.

Source:www.dnaindia.com, June 29, 2009. “More than 300 recruited on final day”

Govt. officers at PSUs likely to gain salary benefits

According to the modification requested by the Department of Public Enterprises (DPE) in Pay Commission recommendations, government officers deputed as executives in PSUs before the Pay Commission Recommendations notification came into force on November 26, 2008 will continue to draw their existing salaries and perks till the end of their tenure. However, officers appointed on deputation to PSUs after 26.11.2008 will not be eligible for the salaries and perks of the PSU they are with.

Source:www.indianexpress.com, June 29, 2009. “Pay relief for govt officers on deputation in PSUs”

Construction and refinery companies increase spending on staff despite slowdown

Indian refineries, aluminum and construction companies have showed a considerable increase in their staff cost despite the onslaught of slowdown. As compared to the year 2007-08, the staff costs of these industries have increased by 21.3% during the year 2008-09 even after only a marginal increase in the total sales of the companies. This has caused in an increase in the share of staff cost in total sales and a decline in the share of staff costs in total expenditure.

Source:www.financialexpress.com, June 25, 2009. “Refineries, construction cos are spending more on staff”

MLAs at a loss: pay arrears of hiked salary denied

Gujarat Parliamentary Affairs Department has sent a proposal to the assembly recommending a rebuff of arrears in salary rise of MLAs. This recommendation will save expenses of Rs. 14 crore for the state where the salary hike was implemented with retrospective effect from January 1, 2006. Meanwhile, opposition MLAs has fiercely opposed this recommendation.

Source:www.ahmedabadmirror.com, June 23, 2009. “‘Pay cut’ for MLAs: No arrears of hiked salary”

AGVKS threatens to go on hunger strike

The Memorandum of Understanding (MoU) signed by government of Gujarat with the All Gujarat Vidhyut Kamdar Sangh (AGVKS) to implement salary hike as per the recommendation of the Sixth Pay Commission has still not been implemented. Due to this, AGVKS has threatened the government to go on indefinite hunger strike form July 1, 2009. The salary of Class IV, V and VI is the same despite the government’s assurance to implement the salary raise from June.

Source:www.indianexpress.com, June 23, 2009. “AGVKS threatens to go on strike if Pay Panel recommendations not implemented”

Hiring activities down in May

The Naukri JobSpeak index declined by 1.9% compared to the previous month. In the month of April, the Job Index was 677 which came down to 664 in May 09. This fall in hiring activity was recorded in all sectors of market, from all the top cities of India. But the recovery is expected in the coming months, said Hitesh Oberoi, COO and Director, Info Edge.

Source:www.dare.co.in, June 23, 2009. “Monthly Update of Naukri JobSpeak - May'09”

Placements and salary goes down for IITians this year

Sluggish economic growth has taken its toll on engineers from IIT; the number of recruited IITians being 60% lower than in 2007. And this fall in placement count is seen in all the IITs of the country. With the number of companies registering for recruitment also down 25%, packages offered have also taken a beating.

Source:www.economictimes.indiatimes.com, June 23, 2009. “Recruiters missing in action at IITs”

Fewer holidays for govt officials next year

In the year 2010, Central government officials will have to work for more days in the year compared to this year as out of 17 holidays declared, 8 are falling either on Saturday or Sunday. They will have to be satisfied by only 9 holidays as there is no provision of a substitute holiday if the compulsory holidays fall on weekends.

Source:www.timesofindia.indiatimes.com, June 12, 2009. “Govt servants to get fewer holidays next year”

Loan repayment punches a big hole in the pockets of employees

According to a survey conducted by the Associated Chamber of Commerce and Industry which included 5000 people mainly consisting of middle class, an average employee only takes 40% salary of their total package home. Rest of the amount is spent for paying EMIs of home loan, education loan, and insurance premium.

Source:www.economictimes.indiatimes.com, June 22, 2009. “Bulk of salaries spent on paying off loans: Industry group”

Sunil Mittal expresses support for labour reform

Sunil Mittal, Chairman of conglomerate Bharti Group, has come out in support of labour reforms in India, while saying that the hire and fire policy will not be acceptable here. He believes that all corporate houses should take due care of their people in a show of benevolence while adding that government and industries should come together and have a discussion on this topic in the context of the present market situation.

Source:www.economictimes.indiatimes.com, June 22, 2009. “Hire & fire policy not acceptable in India: Sunil Mittal”

Salaries of PAs to Maharashtra legislators set to rise

The last day of the monsoon session in Maharashtra Assembly brought good news for the secretaries of MLAs. They got a salary hike of Rs.12000 annually for which a bill was passed in the assembly. The Maharashtra Legislature Members’ Pension Act, 1976 was amended to raise the salary of PAs to Rs.8000. This amendment will be implemented with retrospective effect from June 1.

Source:www.dnaindia.com, June 18, 2009. “Pay hike for ministers' PAs”

CJI steps up efforts to ensure salary hike for subordinate judiciary

Chief Justice of India K G Balakrishnan, after ensuring a salary hike for Supreme Court and High Court judges, is now focusing on a rise in salary for the subordinate judiciary. For this, the CJI has formed a committee headed by him, and has written a letter regarding the concerned issue to the Prime Minister, while also terming it an issue of national importance.

Source:www.indianexpress.com, June 18, 2009. “CJI shifts focus to salary hike for subordinate judiciary”

Gujarat State Police likely to hire more staff

The Gujarat State Police Force, which is running through a shortage of staff, is likely to recruit 9000 to 10000 constables and 1200 to1300 sub-inspectors in next two years. A Police Recruitment Board (PRB) has been set up in this regard. The State Subordinate Services Selection Board had started the same process earlier, but it took long time as it was handling selection of employees in all other department of State Government.

Source:www.indianexpress.com , June18, 2009. “State govt forms Police Recruitment Board to tackle staff shortage”

IDBI faces criticism for variable pay move

IDBI Bank has planned for a change in pay structure of employees, which includes a 30% variable pay coupled on performance. This step has gained severe criticism from finance ministry, which pointed out a government advisory against such a move. R S Athaley, general secretary of the All India IDBI Officer’s Association, said that Bank planned to implement performance based pay structure but has still not developed the system to measure performance. Despite of opposition to this plan, the bank has gone ahead and implemented it.

Source:www.business-standard.com , June 18, 2009. “Finmin against IDBI Bank variable pay move”

AP govt. employees gain increased benefits of Aarogyasri

The Rajiv Aarogyasri scheme provides families below poverty line free treatment upto Rs. 2 lakhs for any major treatment at private hospitals. The AP government has decided to extend this scheme to 3 other districts and also increase quota of patients under this scheme in government hospitals.

Source:The Pioneer, June 18, 2009. “Andra to extend Aarogyasri scheme to Govt. employees” Page no.7

Indian job market to shine soon

Indian job market will soon show a boom, says Naresh Malhan, MD of Manpower India. Indian employers have shown a very optimistic approach globally all through the recession. Recession is still a reality, and has struck hard on finance and real sector. But the employers in the primary sector are promising to make a good come back in the near future.

Source:www.ibnlive.in.com, June 17, 2009. “India's job market very promising: Manpower”

Salary of PCMC employees to rise by 21%

Pimpri-Chinchwad Municipal Corporation employees have a cause to celebrate, as the civic body has decided to implement the Sixth Pay Commission recommendations for the staff. PCMC held meetings to have a clear decision on this recommendation. It will have a retrospective effect from Jan 1, 2006, from when state government has implemented this pay panel. Financial burden of Rs. 28.32 crores will be felt on the corporation every year due to the increase.

Source:www.timesofindia.indiatimes.com , June 17, 2009. “Sharp hike in salaries on cards for PCMC staff”

Umeed: A ray of hope for slum youth

Over 2300 youth from slums who have not secured high education have gained employment through Umeed, which is a project that started in 2005 by NGO Saath for youth aging from 18-35 years. This project has designed a 3 month training module based on the needs of employers in the service sector. A similar programme named Udaan is being implemented in south Gujarat and Rajasthan as well.

Source:www.ahmedabadmirror.com , June 17, 2009. “Over 2,300 slum youths find jobs through Umeed”

I-banks open their doors as stock markets and economy rebound

With the stock markets showing signs of revival and with the government walking the talk on disinvestment, bankers have voiced optimism about new opportunities for job seekers. Many MNCs are planning for expansion in India which in turn will increase hiring activities in financial services. Companies like Morgan Stanley, Goldman Sachs, Merrill Lynch, Royal Bank of Scotland, Nomura and Barclays Wealth are looking forward to steadily increase their headcount.

Source:The Economic Times, June 16, 2009. “Street signs: I-banks go on hiring mode”

Unions up in arms against workers’ welfare fund calculation criteria

The long-awaited dispersal of Rs 125 crore under the Construction Workers Welfare Board was finally made with many opposing the criteria adopted for its calculation. They claimed that with the variation in land prices in Ahmedabad, a blanket order for fixing the cess for all building constructions at Rs 30 per square metre could be a conspiracy to benefit the construction lobby. However, V N Patel, director, Industrial Health and Hygiene looked at it as a move to prevent the harassment of construction companies by cess assessment authorities.

Source:The Indian Express (Express Newsline), June 15, 2009. “Workers’ welfare fund: cess calculation criteria attract criticism” Page no.3

AITUC demands upward revision in minimum wages as strike threat looms

Delays made by the Government of Goa in the notification of upward revision in minimum wages for the state could lead to a statewide agitation by All India Trade Union Congress. AITUC General Secretary Christopher Fonseca stated that the minimum wages act was enacted to prevent labour exploitation by fixation of the rates of minimum wages for those schedules of employment where the wages are pathetic and at starvation level.

Source:www.daijiworld.com , June 14, 2009. “Panaji: AITUC Threatenes to Strike Demanding Minimum Wages”

Low salary behind the lax attitude of Traffic Brigade jawans

In spite of having 120 Traffic Brigade jawans, there has not been a decrease in the number of accidents in Vadodara. During peak hours, the traffic scenario remains extremely chaotic which leaves the traffic system at the mercy of commuters. Unlike the Traffic Brigade jawans in Surat, their counterparts in the city get a meagre salary of Rs 110 per day and no job security which leads to frequent absenteeism as well.

Source:The Indian Express (Express Newsline), June 13, 2009. “Low salary, lack of monitoring make Traffic Brigade jawans lax in duty” Page no.5

Sarkari jobs turn more lucrative with pay hikes

As an effect of the recent developments in salary hikes taking place in the Chandigarh UT administration, there is an increased clamour for sarkari jobs while also bringing good news for its 22000 employees. According to the recommendations of Fifth Pay Commission, Chandigarh would provide revised pay scale to all the UT staff except All India Services members from June 1 and Punjab would follow suit from August.

Source:The Times of India, June 12, 2009. “Hefty salary hike for UT employees”

Fresh engineers grope in the dark for jobs

According to Infosys CEO S Gopalakrishnan, with the slow growth rate of the IT industry, demand for new engineers will remain very limited for the current year. He had also emphasized on the improvement of the quality of education so that students have necessary skill-sets required for an industry. Moreover, Wipro Chairman Azim Premji had also stated that there would be a slide in the number of jobs and the pay package for IT graduates this year.

Source:The Economic Times, June 12, 2009. “Job prospects for IT graduates bleak this year: Experts”

RMSI tops ‘India’s best companies to work for, 2009’ survey

Software application maker and Noida-based company RMSI has topped the ‘India’s best companies to work for, 2009’ survey. In all, 373 companies from across 25 industry verticals registered for the study, which listed Intel and Federal Express at the no. 2 and no. 3 spots respectively. Others like Aviva, Google, Qualcomm, Marriott, AmEx, NetApp and NTPC also made it to the Top 10, in that order.

Source:The Economic Times, June 10, 2009. “Noida’s RMSI is the best place to work in India”

Employment Outlook on a high note as Indian companies able to handle slowdown better

According to a latest quarterly survey by HR consulting firm Manpower, India has topped the list of countries which hold a positive employment outlook with one in every five Indian employers likely to recruit in the third quarter of 2009. Public administration and Education sectors are the most promising with a Net Employment Outlook (NEO) of 33% for the July-September quarter. Sectors like finance, insurance and real estate have the least hiring intentions with a NEO of 11%.

Source:The Economic Times, June 10, 2009. “Indian companies upbeat on employment outlook, handle slowdown better”

Google India bullish on hiring plans

Google has classified India as one of its 10 most would-be impactful markets in the next three to five years and is bullish on its hiring plans to drive its advertising business. Google India has one of the highest headcounts outside the US, with 2 Research & Development centres in Bangalore and Hyderabad and offices in Mumbai and Gurgaon.

Source:The Economic Times, June 10, 2009. “Google bets on India, set to hire more”

Auto companies decide to raise salaries notwithstanding stagnant sales

Despite clocking low sales, big firms from the automobile sector like Tata Motors, Ashok Leyland and Bajaj Auto plan to increase salaries of their employees. Hero Honda surprised everyone this January with a salary hike of 9% for its staff, which will be followed by the annual wage hike of 10%. According to HR experts, these salary hikes imply that companies see a reversal of trend in auto sales while it may also help boost employee morale and performance.

Source:Business Standard, June 9, 2009. “Salaries to rise, even if sales do not, decide automobile firms”

Prospective airhostesses turning to railways for employment

With the Railways coming up with special coaches on trains, it is bound to create jobs for many girls who aspire to become airhostess. The Delhi-Sealdah-Delhi Sampark Kranti Express will be launching such coaches which will also provide with security personnel and compartments equipped with modern facilities and decor and where passengers are attended to by hostesses.

Source:The Economic Times, June 8, 2009. “Hostesses-on-train clicks, recruitment on fast track”

Gujarat govt. set to disburse welfare funds to construction workers

Following an order from the Supreme Court and a directive from the Union government, nearly 38,000 registered construction labourers will get their dues from the Rs 125 crore deposited under welfare laws at Gujarat Building and Other Construction Workers’ Welfare Board in Ahmedabad, Rajkot and Vadodara. According to the provisions of the Act, all the establishments undertaking any construction project of over Rs 10 lakh and employing over 10 workers are required to pay a cess of 1%-2% of the construction cost.

Source:The Indian Express (Express Newsline), June 8, 2009. “Govt. releases funds for welfare of registered construction workers” Page no.3

Indian firms opt for telepresence to cut costs

With the view to cut down on travel expenses, Indian firms now have adopted telepresence in place of video conferencing, which provides a poorer quality of service. Although installation of this facility costs 2-5 lakh dollars, it reduces the costs a company bears with a high frequency of travel of executives. On the other hand, public telepresence rooms generally fall among the cheaper options with Rs 600-7500 as charges per hour.

Source:The Times of India, June 8, 2009. “Telepresence: Corps’ new cost cutting tool” Page no.13

Raise in judges’ salary in ahmedabad

In accordance with a recent judgement by Supreme Court, the state government in Ahmedabad has made up its mind to increase the salaries for various cadres of judges which will lead to a burden of Rs 171 crore on state treasury. With effect from January 1, 2006, the civil judges will get a hike of 42.3%, civil judge (senior division) - 58.5%, district judge (entry level) - 71.6%, district judge (selection grade) – 80% and district judge (supertime scale) - 91.7% hike to their present scale.

Source:The Times of India, June 6, 2009. “Salary hike for judges”

Centre to make appraisal system more transparent and consultative

Like the private sector, the central government too has decided to make the performance appraisal system more transparent for its 3.3 million employees. From April 1st, the respective departments have been directed to disclose contents of the reports to the officers. The appraiser will have to discuss the details of the report, which are renamed as Annual Performance Assessment Reports, with the employee concerned who is eligible to make remarks before 15 days of receiving the report.

Source:Business Standard, June 6, 2009. “Performance appraisal: Govt takes a cue from private sector” Page no.1

HR management policies under scrutiny

According to experts, Indian organizations have poorly handled HR management policies during the last six months. HR managers have failed to comprehend HR functions while trying to get rid of people and thereby damaged the brand equity of the firm among potential employees. For except a few firms that chose to create a tight performance matrix to ensure that real talent is not shown the door, others lacked transparency and communication during the retrenchment process.

Source:The Economic Times, June 6, 2009. “HR issues poorly handled during slowdown:Experts” Page no.3

Govt. comes to the rescue of textile industries

In spite of a sharp fall in textile exports, the UPA government is set to generate one crore jobs in the textile sector which would also attract an investment of Rs 1.55 lakh crore in the next five years. Textiles minister Dayanidhi Maran aims to target an annual growth of 8 to 10% in the $52-billion industry so that it can withstand the pressure of import penetration and maintain its dominance in the domestic market.

Source:The Financial express, June 2, 2009. “Centre to create one crore jobs in textiles sector, says Maran” Page no.2

20% employers in India fail to fill vacant positions

According to Manpower Inc, about 20 per cent of employers in India are finding it difficult to fill up vacant positions. Although the problem is less significant in India and well below the global average of 30%, there is certainly a disparity between supply and demand. Moreover, the survey also added that employers must contain costs for the short term without compromising their long-term appeal to talented workers and retain the best workforce.

Source:The Economic Times, June 3, 2009. “One-fifth of Indian employers unable to fill vacant posts”

Assam oil workers give one month deadline for wage hike

The Assam Petroleum Mazdoor Union has decided to protest against the government and the oil companies through a 24 hour strike on Monday. If their demands which include minimum monthly salary of Rs 10,000, provident fund benefits, bonus and other allowances aren’t met with, they plan to resort to continuous agitation.

Source:The Assam Tribune, June 4, 2009. “Oil workers’ strike”

Now, an employment scheme for the urban poor

On the lines of the NREGA scheme for rural households, the government is mulling over the idea of extending the same for the urban poor. Initially launched in 200 districts, the NREGA scheme was gradually extended to cover the entire nation in 2008-09. Besides this, the UPA government would also be heeding to issues like diversion of funds, anti-poverty programmes and rural and urban development.

Source:Business Standard, June 4, 2009. “Govt. mulls NREGA-type scheme for urban poor” Page no.2

Labour Ministry working for welfare of workers under the construction sector

With the new government in power, the labour and employment ministry has asked the state governments about the non-utilisation of funds amounting to Rs 1500 crore and has pushed for a stimulus package for workers in the construction sector. It aims to work for registration of construction workers and extension of benefits under welfare schemes by taking the help of Panchayati Raj institutions and district magistrates.

Source:The Indian Express, June 4, 2009. “Govt working on stimulus for construction sector workers” Page no.14

Government focusing on including skilled workers in NREGA scheme

The Government of India is aiming to expand the scope and size of its flagship programme - National Rural Employment Guarantee Act, for uplifting the aam aadmi’s standard of living and achieving inclusive growth. It is set to extend this scheme to skilled workers and increase allocated funds in key ministries — rural development, health and education besides focusing on National Rural Health Mission and National Mission for Female Literacy.

Source:The Economic Times, June 5, 2009. “Govt’s social agenda in sharp focus” Page no.6

Huge salary hikes for Indian CEOs

Despite the huge net losses made by Indian companies and pink slips being handed to several employees, many CEOs have got a hike of 27% in their salary, according to a salary survey made by The Economic Times. Figuratively, CEOs agreed that unlike last year, their salaries have doubled with nil contribution from incentives. Head-hunters sight non-linking of CEO salaries to company performance and a good financial performance as compared to their global counterparts behind this pay hike.

Source:The Economic Times, June 1, 2009. “CEOs take 27% hike as profits dip”