TVS Motor Company has temporarily cut pay across various levels of employees for a period of six months, with the pay cut being applicable from May to October. The employees reportedly received their salary in full for April.
In a statement, the company said that there will be no reduction at the workmen level, and starts at the junior executive level, with cuts starting at 5% for junior employees and going upto 20% for senior employees.
“In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months (May to Oct, 2020). There will be no salary reduction at the workmen level. However, there will be a 5 percent salary reduction at the junior executive level and about 15 to 20 percent at the senior management level. It was heartening to see employees coming forward and offering to take salary reduction voluntarily”, TVS Motor Company spokesperson reportedly said.
CNBCTV18 reported that the company sent out an internal communication about the salary reductions, and the situation will be reviewed depending on the business situation in October.
“Many sectors have implemented stringent measures to overcome this crisis. This includes cost cutting, job reductions, and salary cuts. Therefore it is important that we take cognizance of the situation and react appropriately”, the internal letter said, according to CNBVTV18.
The company has four manufacturing plants, three located in India (Hosur in Tamil Nadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh). Earlier in May, it had said that it had restarted operations in all three factories.
In the first week of May, TVS Motor Company announced that it reported zero domestic sales in April. "During April, TVS Motor Company had zero sales in the domestic market," it said.
However, it exported 8,134 two-wheelers. "Following resumption of operations at the Chennai Port, 8,134 two-wheelers and 1,506 three-wheelers were shipped using the stocks from March while ensuring utmost safety," it said.