The company has not yet declared the quantum of salary reduction across different levels. New Delhi: At a time when the industry is paralysed by the Covid-19 contagion, two-wheeler manufacturer TVS Motor Company has decided a pay cut for its employees starting from the month of May, as a result of a significant fall in its sales.
According to a media report, the company’s chief executive officer KN Radhakrishnan communicated the decision to employees on May 23.
“The company has chosen to roll out a salary reduction across different levels for a period of six months, starting May 2020 to October 2020. We will review the situation depending on the business condition that exists then”, said the internal communication, as per the report.
However, the company has not yet declared the quantum of salary reduction across different levels.
To get through the pandemic phase, the company informed that its employees voluntarily proposed the salary cut for a few months. Meanwhile, the two-wheeler maker paid full salaries to its employees for the month of April.
Earlier, Bajaj Auto also decided for salary cuts to its employees for the month of April, however planned to go against it later.
Other organisations like the Tata Group have recently announced a 20 percent pay cut at its top deck. Auto component manufacturer Rico Group’s senior executives have taken 100 percent paycut for three months.
The move comes as part of the cost-cutting measures due to the economic downturn in the country, aggravated by the coronavirus pandemic.