17/04/2020
Auto Industry Updates
Bajaj Auto, TVS Motor have already resolved to cut salaries, Tata Motors may also do so shortly.
Details:- Auto companies are set to cut salaries as they seek to reduce costs with the Covid-19 lockdown having worsened already bleak prospects, said people with knowledge of the matter, adding that they are trying to avoid sacking people.
Two-wheeler makers Bajaj Auto and TVS Motor have already resolved to cut salaries, at least temporarily. Commercial vehicle makers such as Ashok Leyland and Tata Motors, the hardest hit in FY20, may also do so shortly, said the people cited above. Bajaj Auto MD Rajiv Bajaj has said he won’t be getting a salary through the lockdown period. Apollo Tyres CMD Onkar Kanwar and vice chairman Neeraj Kanwar will take a 25% salary cut in FY21. TVS Motor Co’s top management is also expected to take a pay cut in FY21. Annual increments for other employees are set to be withdrawn for this year.
TVS Motor didn’t send increment letters as it usually does on April 1. “We have to open factories, look at operations and work out the detailing on the extent of pay cuts,” said one of the persons cited above.
The government imposed a three-week lockdown starting March 25 and ending April 14. It was extended to May 3.
Bajaj Auto has reduced pay for the period between April 15 and May 3. “Effective April 15, we are therefore deliberating implementing a pay reduction in monthly fixed gross across all levels until the lockdown is lifted,” Bajaj Auto told staff. “Our managing director has taken the lead and decided that should this be implemented; he will not be taking any pay during this period.”
------- Source:- EconomicTimes
