Tata Sons companies restore salaries, pay hike expected too
Tata Sons’ held blue chips like TCS, Tata Capital, Tata Consumer, Tata Chemicals, Tata Motors, Tata Steel, Tata Power, Titan, Trent, and Voltas have already announced pay hikes and bonuses for staff, according to a report published in Economic Times.
Top management across the group companies took an estimated 20 percent pay cuts in 2020 to reduce cost and help push through the coronavirus pandemic-induced lockdowns. Their pay will be restored and increases finalised by March-end, the report said.
Tata Sons director Bhaskar Bhat said there is “optimism” about business prospects in smaller towns of India and faith Indian consumers. “The group focused on protecting its employees last year and kept costs in check. Going ahead, profits will be driven by business growth too,” he said.
Tata held Indian Hotels (Taj chain) will however not be able to raise pay as the industry continues to face challenges and significant costs “have gone straight to the bottom line,” an executive told the paper.
Meanwhile, an official at Tata Power said they had seen improved business and as an essential service, employees showed “great resilience and commitment to their roles despite health concerns”. They added that the pay hike would be an “appropriate reward” to acknowledge them.