Chennai based two-wheeler manufacturer TVS Motor Company has decided to reduce the salaries of its employees starting this month. The company has announced the pay cut to recover from the losses due to Covid-19 pandemic in the country.
KN Radhakrishnan, Chief Executive Officer, TVS Motor Company, communicated the decision to employees on May 23. He stated that the company has made a decision to introduce a reduction in salary across different designations for a period of six months between May 2020 and October 2020.
Any further change in the decision will be made after the completion of six months. He also stated that the company has paid a full salary to employees during the month of April, despite being non-operational due to the nation-wide lockdown.
The pay cut order issued by the company states that there will be no salary reduction at the workmen level. However, there will be a 5 per cent salary reduction at the junior executive level and about 15 to 20 per cent at the senior management level. According to the company, the employees came forward to take a voluntary pay cut to help the brand during these unprecedented times.
Like most manufacturers, TVS also had to temporarily suspend its entire operations in the wake of the nation-wide lockdown announced in the country. The Indian Government announced a complete lockdown during the end of March this year to help stop spreading of Covid-19 virus in the country.
As a result, auto manufacturers have been affected badly because of zero sales during the month of April and the massive auto slowdown experienced due to the shift from BS4 to BS6 standards. To minimize the losses, several companies had to take drastic measures including job loss, salary cut among others to help the company during these tough times.
Rajan Wadhera, President, (SIAM) Society of Indian Automobile Manufacturers, stated that job and salary cuts will happen once during the on-going Covid-19 pandemic in the country. Indian auto sector is facing one of the worst crisis due to the pandemic.
However, we expect brands to improve in terms of sales with the re-opening of dealerships and service centres across the country as the nation-wide lockdown was partially lifted in the country. Also, with the current need for social distancing, sales of affordable personal transport such as two-wheelers are expected to increase as well.
In related news, TVS Motor Company has recently announced the successful acquisition of the iconic British motorcycle brand, Norton. Mr Sudarshan Venu, the Joint Managing Director at TVS Motor Company said that the manufacturing facility in the UK will retain its design and assembly team here are all the details.
Thoughts About TVS Employees Taking Pay Cut For Six Months
Like most manufacturers, TVS Motor Company had to shut down its entire operations across the globe including retail and export sales due to the ongoing Covid-19 pandemic in the country. This has resulted in major revenue loss for the company and has announced a percentage of salary cut for its employees.