Archives- News Updates On October

No salary hike for lower level executives in IT sector

Though the economic situation continues to improve for IT companies, recovery continues to be at a low pace. The IT sector is now gaining projects from the government and global MNCs with that ratio increasing steadily along with their profits. In spite of this, companies have decided against a salary hike for middle level and lower level executives, restricting it to about 0-5 percent; while salaries of CEOs and higher level executives has been increased 8-10 percent as companies believe that they cannot afford to lose top-level executives.

Source:www.siliconindia.com, November 6, 2009.“More projects, but no hike in salary for lower level executives"

Flexibility in staff management required to survive in the post-recovery world

Manpower Inc, an employment services industry firm, suggests that companies should have a more flexible and strategic approach towards their employees, especially after last year’s recession. This will help them to get hold of the best talent and retain them. Also, contingent employees should be considered as practical resource and steps for their betterment must be taken. Effective steps in manpower management will lead the companies to manage risk and increase productivity.

Source:www.financialexpress.com, November 5, 2009.“Companies need flexible approach towards staff management: Manpower”

Companies facing problems to regain employees after slowdown

The companies which resorted to layoffs and salary cut during the economic slowdown are now having a hard time gaining employees. Their knee-jerk approach of lay-offs has adversely affected the reputation amongst prospective employees. The companies which did not stick to their promises after campus recruitment are also facing the heat while former employees are also advising friends and familiar people against joining such companies.

Source:economictimes.indiatimes.com, November 5, 2009.“Payback time: Cos may face heat for layoffs, salary cuts”

Govt employees to get smarter outfits

The government is all set to bring changes in the uniform of employees in public sector units, armed forces and in the state government. The new outfits will be more professionally designed with a smart look. The Central Vigilance Commission office, which decides the tendering of the various processes, is insisting on composite mills for the clothes since the process of weaving, spinning and processing is done at the same place in a composite mill, thus maintaining the quality and colour of the clothes.

Source:economictimes.indiatimes.com, November 5, 2009.“Govt staff to shed grey, tired look for chic”

Earth works wages under NREGS revised in Orissa

Orissa has revised the NREGS (National rural employment guarantee scheme) earth works employees wages for unskilled labourers from Rs 70 to Rs 90. Officials have also said that revised wages for lifting the 100 cubic feet of earth in ordinary soil is raised from Rs. 100 to 120, for hard soil from Rs. 135 to 160 and for stony soil from Rs. 215 to 250. This was done to attract job seekers towards NREGS as there is a high fall in the demand for NREGS jobs.

Source:economictimes.indiatimes.com, November 5, 2009.“Orissa revises wages for NREGS job seekers”

Patna HC orders hike in the salary of civil court employees

Patna High Court passed an order to the state government to raise the salary of civil court staff to the level of government employees’ salary after the Sixth Pay Commission recommendations. The division bench of HC judges directed the state government to pay the raised salary to the civil court staff within a month and arrears be paid within a stipulated time-frame since government employees have already received it.

Source:timesofindia.indiatimes.com, November 4, 2009.“HC orders pay hike for civil court staff”

Coal India to up CSR contribution

On the occasion of 34th foundation day of Coal India Ltd (CIL), Coal Minister Sriprakash Jaiswal said that CIL will devote five percent of its net profit for the Corporate Social Responsibility (CSR) fund. Also, the company will provide support to 100 meritorious students in BPL households for their higher education and will also offer them a job in the company. Mr. Jaiswal also proposed to fix minimum wages for the contract coal workers, which should be higher than state government’s minimum wages.

Source:www.ptinews.com, November 1, 2009.“Coal India to devote 5 per cent net profit to CSR”

Railway ministry to conduct recruitment exam in Urdu for J&K

Union Railway Minister announced that railways will now conduct railway recruitment exams in Urdu in addition to English and Hindi to benefit young people in Jammu and Kashmir. She added that railway concessions for schools and colleges will be extended to higher madrasas as well, while women from minority communities and economically backward classes will not have to pay postal orders for recruitment process.

Source:www.deccanherald.com, October 28, 2009.“Railway recruitment exam in Urdu”

Promotion still pending for 2005 batch of Gujarat cadre IAS officers

The promotion from junior time scale to senior time scale for the IAS officers of 2005 batch Gujarat cadre is still pending for six officers. Promotions are important as it hikes the salary to a substantial level, but one of the officers said that it has always been low in the govt’s priority list. They added that 2007 batch promotion was pending for a long time and was finalized only recently.

Source:www.3dsydication.com, October 27, 2009.“2005-batch IAS officers still await promotion”

HEC issues circular to resume work

The Heavy Engineering Corporation (HEC) in Ranchi, which has work orders worth nearly Rs 1600 crore, has issued a circular asking its employees to resume work and abstain from proceeding on a strike for wage revision. Most of the trade unions have rejected the bandh call while some have called for a day’s token strike. However, the management of HEC has announced no-work no-pay for those who resort to strike and has ensured security for those who wish to resume work.

Source:timesofindia.indiatimes.com, October 29, 2009.“No-work, no-pay for striking employees: HEC”

Demand for nuclear specialists set to increase sharply

In view of the massive plan to build up of nuclear power stations by 2020, the demand for specialists in the field of nuclear science is estimated to increase manifold. Coupled with govt policy and a strong interest shown by global players to enter India, the industry is expected to hire close to 19,000 professionals across the next 5 years. However, only close to 50 people obtain PhDs in nuclear science from the IITs and Indian Institute of Science, which might act a dampener in the growth of the industry.

Source:economictimes.indiatimes.com, October 29, 2009.“Nuclear sector set to power job market; hire 19,000 pros"

Employers finding talent scouting difficult

According to a study by SHL, almost half of the recruiters surveyed have experienced an increase in the number of job applications. 23% of them stated that it had actually become easy to recruit candidates while 36% of the respondents have been taking longer to recruit suitable candidates either because of the sheer number of applicants, misunderstanding in the competencies required or because they know that the candidates will look for jobs only after the job markets improve; thereby struggling to find talent in spite of numerous applications.

Source:economictimes.indiatimes.com, October 28, 2009.“Employers struggle to find talent despite job-seekers' rush”

Huge salaries of bank executives under scanner

Following the footsteps of the West, the Reserve Bank of India is aiming to analyze key financial ratios and reputation before approving the pay packages of senior bank executives and set broad guidelines to regulate their pay. It believes that it must be a principle to align compensation with the risk and return. According to the norms of Financial Stability Board, a substantial portion of the compensation of senior executives should be variable and payable at a deferred date.

Source:economictimes.indiatimes.com, October 28, 2009.“RBI norms on bank execs' salary on cards”

Gujarat college teachers agitate for wage issues

Along with the North Gujarat Universities Area Teachers' Association, college teachers across Gujarat held protests for wage hike and will also meet to decide on its continuation. They complain of not receiving salaries according to the recommendations of UGC, the resolution for which was passed by the state government on October 6. While protesting, the teachers had their signatures in blood on applications and lit a bonfire of the copies of the resolution.

Source:timesofindia.indiatimes.com, October 27, 2009.“College teachers across state continued protests”

Karnataka construction workers to get pension cover

The Karnataka Building and Other Construction Workers’ Welfare Board will now cover construction labourers under pension and health insurance schemes by extending medical cover from a minimum Rs 2,000 up to Rs 50,000, especially for chest diseases like TB, cancer and for kidney patients. A ‘funeral fund’ of Rs 4,000 will also be included. With proper registration, when the worker completes five years of membership, he will be entitled for a monthly pension of Rs 300.

Source:timesofindia.indiatimes.com, October 27, 2009.“Construction force gets a cover”

Indians get the least annual paid leaves

India, unlike Finland, Brazil and France, gets the least number of statutory annual leaves with 12 days as shown in a survey by HR consultancy firm Mercer. On the flip side, India, along with Japan, is ranked at the top with 16 public holidays annually. However, with some countries providing upto 30 day annual paid leaves, a pressure for greater flexibility around public holidays is experienced especially by nations of India, Canada, Australia, UK, the Netherlands and China.

Source:economictimes.indiatimes.com, October 26, 2009.“Indians among those to get least paid leaves annually: Survey”

IT sector leads the buoyancy in recruitment market

With markets witnessing some stability, recruitments have started increasing in banking, retail, realty, healthcare, education, housing construction and infrastructure sectors. Though third party recruiters deny the fact, the IT sector - which froze hiring for almost a year - is in hiring mode as well. Close to 150,000 people will be hired next year as enterprises, internal and third-party HR professionals have been reported to be busy with recruitment activities.

Source:economictimes.indiatimes.com, October 26, 2009.“IT-ITeS, banking, retail, realty now hunting for talent”

High attrition rates a cause for concern across Asia Pacific.

The Asia Pacific region is reported to have the highest attrition rate at 13.8% despite the financial crisis, according to a recent Hewitt Associates’ survey. Most Asian companies, unlike their counterparts of Singapore, Korea and Thailand, have recorded double digit voluntary employee turnover. The expectation of a lower employee turnover in the wake of the recession has been broken with the Asian employers trying hard to retain high performers with attractive incentive schemes.

Source:economictimes.indiatimes.com, October 25, 2009.“India Inc continues to see high attrition despite downturn”

Work stress highest in the age of 50

According to the recent study by Amanda Griffiths, a Professor of Occupational Health Psychology, the effects of stress in working lives can stay with us well into retirement. The older workers’ willingness and ability to remain in the labour force gets hampered due to stressful posts. As a result, most of them retire voluntarily due to ill health or increasing seniority. However, this stress could be eased by offering employees an attractive and flexible working environment.

Source:timesofindia.indiatimes.com, October 22, 2009.“Stress levels at work peak at 50”

Banking professionals left in the lurch for wage hike

In spite of the agreement between the Indian Banks Association (IBA) and United Forum of Bank Unions (UFBU) over wage hike, eight lakh bank officers and employees will not get the same anytime soon. The proposed wage hike of 17.5%, to be effective from November 2007, has been delayed because of issues like accounting for the cost of pension and its cost-sharing arrangement between bank management and employees. It is now expected to be resolved only when the unions meet.

Source:economictimes.indiatimes.com, October 22, 2009.“Bankers may need to wait a little longer for wage hike”

Upward trend in Indian salaries for 2010

Recent surveys conducted by Hong Kong-based HR Business Solutions and Hewitt Associates have indicated that India would witness a salary hike of 8 per cent in 2010 – highest in the Asia-Pacific region. An upward revision of 4.8% compared to 3.2% of 2009 is likely to be witnessed with an increase in hiring activities and high GDP growth rate of India, expected to touch 8% in 2010.

Source:economictimes.indiatimes.com, October 22, 2009. “India Inc may see 8 per cent salary hike in 2010: Survey”

Centre refuses to increase job days under NREGS

The central govt has refused a demand to increase NREGS job days and capped the number of days to 100. Planning Commission Deputy Chairman Montek Singh Ahluwalia had lobbied hard for a temporary increase in the job days provided under National Rural Employment Guarantee Act (NREGA) in certain areas which were affected by drought. The Empowered Group of Ministers (EGoM) headed by Pranab Mukherjee had earlier decided to give 50 extra job days to drought affected areas from National Calamity Contingency Fund (NCCF).

Source:in.news.yahoo.com, October 21, 2009. “NREGS: Centre says no to more job days”

Goa showers Diwali bonanza for civil representatives

Chairpersons and councilors of 13 municipal bodies and 1 municipal corporation across Goa were gifted with a uniform pay hike of Rs 2000 by the state government this Diwali. However, Avinash Bhonsle, a corporator of the city of Panaji, said that they are not happy with the pay hike as it is below their expectations. He added that the honorarium paid to civic representatives is not even the quarter of what is paid to MLAs and MPs while also excluding corporators from the purview of pensions.

Source:timesofindia.indiatimes.com, October 17, 2009. “Diwali largesse for civic representatives”

Andhra Pradesh government employees get 8.5% DA rise

Andhra Pradesh Information Minister Ms J. Geeta Reddy announced an 8.5% DA (Dearness Allowance) rise for state govt employees. The hike will be applicable from July 1, 2009 and the corresponding arrears will be transferred to the General Provident Fund account of employees. Also, the enhanced DA in salary will be included from November 1, 2009, all together adding a financial burden of Rs 1,165.23 crore per annum on the AP govt.

Source:www.thehindubusinessline.com, October 15, 2009. “8.5% hike in DA for Andhra Pradesh Govt staff”

Pharma sector - best performing sector in Q3

The quarter ending in September showed a good sign for the pharma sector. The average estimated by ETIG on seven leading pharma companies and eight other broking houses indicated a growth of 77% net profits. The swine flu and monsoon season facilitated in making this sector the best performing sector. In the coming months, one might witness Indian pharma companies meeting the USA norms.

Source:economictimes.indiatimes.com, October 14, 2009.“Pharma cos likely to emerge stronger in Q2”

Companies opting for flexible wage structure

The survey conducted by consulting Watson Wyatt in 12 countries of Asia-Pacific region, on employee benefits trends found that there is an increasing emphasis laid on flexible benefits programmes by the employers. According to this scenario, the salary is fixed but the employee benefit schemes are added to them. These flexible benefit programmes consist of retirement scheme, insurance cover and car benefits to attract and retain employees.

Source:economictimes.indiatimes.com, October 14, 2009.“Companies may switch to 'flexible' wage model to control costs”

Double digit salary increase is expected in 2010

This year’s economic slowdown affected salary hike in many sectors. As per the survey conducted by Mercer India, the IT sector was the worst hit sector and received zero percent salary increase in this year. But the survey done on 93 companies also indicated that they are expecting to see a double figure salary increase in the year 2010. The overall average salary increase in this year is around 8 percent and is expected to be 10.9 percent in the year 2010.

Source:www.livemint.com, October 13, 2009. “Pay hikes to return to double digits in ’10: poll”

Inc need to check corporate heads’ packages

A survey conducted by Associated Chambers of Commerce and Industry of India (Assocham) on 100 top executives in corporate found that 60 percent of them agreed only if salaries are not regulated is it possible to attract best talent. 40 percent of the respondents believed that corporate heads should have showiness and should work with judiciousness and prudence. Corporate minister Salman Khurshid stated that the Indian companies should observe some strictness in providing huge packages to chief executives of the firm.

Source:ibnlive.in.com, October 5, 2009. “Salaries are our business: India Inc tells Govt.”

Corporate leaders not happy with the religious profiling

UPA government has asked public and private sector companies to build a database containing personal details of their employees including their religion. This is to help government to implement minority welfare programmes under the Equal Opportunity Commission (EOC) in this winter session of Parliament. This database will help them to check that whether that company is having social diversity at workplace or not. But the corporate heads are not happy with this decision, as it will bring more complication at workplace.

Source:www.business-standard.com, October 1, 2009. “Corporate heads not in favour of religious profiling of staff”

INTUC demand for national minimum wage

National president of INTUC (Indian National Trade Union Congress) G Sanjeeva Reddy has asked the Centre for proper implementation of labour laws in the nation and fix the national minimum wage. He added that the national minimum wages should be fixed by the Centre and not by the state government and these national minimum wages should act as a benchmark for fixation of wages. He also requested the government to prohibit the contract labour system and demanded for same payment to those labourers as that of the permanent workers.

Source:www.ptinews.com, October 11, 2009.“Plea for national minimum wage”

CEO salaries higher than companies profit

Despite the economic slowdown in the market for the current year, the salaries of the top management have increased by an average rate of 18 percent in comparison to companies saw slowdown in profit on average of 14 percent. Sunday Economic Times have arrived at this conclusion by analyzing top ten companies of the Sensex, BSE mid-cap and small-cap indices. James Agrawal, consulting director and head of executive search firm BTI said in explanation to this that the salary rise was due to good performance of the employees in the FY08.

Source:economictimes.indiatimes.com, October 11, 2009.“Boom or gloom, CEO salaries do better than profits”

Gujarat teachers dissatisfied with the pay rise

State government of Gujarat pronounced implementation of Sixth Pay Commission for the teaching staff of universities and colleges. However they are yet not satisfied with this pay rise, because they feel that this pay hike is not according to the guidelines of Sixth Pay Commission and is much less than that. Prof. K S Shastri, president of Gujarat State Teachers Association seconded the opinion by stating that the pay hike is unfair and insulting for them.

Source:www.dnaindia.com, October 8, 2009. “Pay hike is unfair: College teachers”

TNPL Contract employees get salary rise

Tamil Nadu Newsprint and Papers Limited (TNPL), Karur has decided to increase salary of their contract labourers by 15 percent from October 1 on the occasion of its silver jubilee. Deputy Chief Minister M K Stalin announcing the hike also mentioned that TNPL has progressed since 1979 from the production capacity of 90000 tonne to present 2.45 lakh tonne and is likely to grow to 4 lakh tone. On this occasion, they have planned to distribute 6 grams gold coin and 3 grams coin to 1112 permanent staff and 1573 contract staff respectively.

Source:www.expressbuzz.com, October 4, 2009. “Pay hike for TNPL contract staff”

Pay hike for PSU employees

The negotiations between employee union, IBA (Indian Bank Association) and government which is in last stage of discussion indicated that the Finance ministry officials would soon hike the salaries of PSU employees at around 17.5%. This pay rise will have a retrospective effect from November 2007. Around 8 lakh employees will have a pay revision under this effect and cost around additional Rs 9000 crore for this fiscal.

Source:profit.ndtv.com, October 1, 2009. “PSU banks get first pay hike in 5 years”