Do not fire, says PM. But whereas the money to pay wages, asks industry
Despite Prime Minister Narendra Modi asking companies not to lay off staff, employers across sectors have already started cutting their manpower.
Companies in sectors such as IT, aviation, travel, media and events management have already handed out the pink slips to hundreds of employees.
This is the second time that the Prime Minister has requested the companies to refrain from firing employees. In his March 19 address too, he had made the point.
But on their part, the companies argue that they are struggling to manage the wage bill, especially in the absence of direct economic help from the government.
"We have a monthly wage bill of about Rs 20 crore. Now we haven't produced anything for a month. If this goes on for a month more, how are we supposed to pay salaries," a senior executive from a manufacturing company told Moneycontrol.
So which sectors have already laid off people?
Aviation: GoAir and SpiceJet have terminated contracts of their expat pilots. Other airlines have cut pay and asked a large portion of their staff to go on leave without pay. Air Deccan has put its staff on sabbatical without pay.
IT/ITeS sector: Gurgaon-based BPO firm Fareportal laid off over 300 employees. A Pune-based IT firm has laid-off a dozen workers. According to industry estimates, close to 1.5 lakh techies could be out of job in the next 3-6 months. The sector employs about 45-50 lakh people, with the top four players accounting for about 10 lakh of the total workforce.