The decision appears to be illogical and doesn't make sense for two reasons.
Firstly, the variable pay that we are receiving in the current year is for the previous year performace and it is determined at the end of the previous year. Hence, it doesn't make sense to reduce the variable pay in the current year. If the company performance is not good or "EVA targets are not met" in the current year, it makes sense to reduce the variable pay that will be paid for the next year.
Secondly, we were told that there is something called "Bankable EVA" that will be used to balance the variable pay in situations where the "EVA targets are not met". This bankable EVA is accumlated with the difference (EVA when targets are exceeded - Expected EVA) whenever our performance exceeds expectation. What happened to this bankable EVA? Does it have zero amount in it? Are we not always meeting internal targets? Are we always underperforming?
TCS has shown that it is No. 1 in all fields. When other companies are saying that they have effectively hedged out the Re-Dollar fluctuation, TCS says it couldn't handle it....unbelievable. It all works out to the motive. Possibly, grabbing the opportunity to extract the money on this excuse and invest it elsewhere - Tata Nano, which is expected to break even in 4 years and Tata Chem for the $1 billion US acquisition. It's high time that the employees formed an Union. TCS seems to take everyone for granted.
RE:After all its all about Experience Certainty
by A on Feb 09, 2008 06:42 PM Permalink
Dont forget that TCS controls all the provident funds, we were asked to sign a letter allowing them to administer and not the government. At this point, i dont know whom to trust
I think it is only fair that the variable portion of the pay is cut - that is why it is called variable pay. There is nothing unfair about it. The reason behind is though very scary. Indian IT service industries will suffer a lot. But I think th egood nes is that the salaries of the Indian IT workers is high compared to other sector and the comapnies will be able to survive cutting the salary and some fat in their operation. If fat is not for tough days, what else can it be used for?
The salary cut is a strategic move by Tata's. They want their employees to remain poor so that they buy only a Nano. In any case most TCS employees are fit for nothing. A few smart guys run the company and few freshers work hard. The so call LON TERM TCS'ers ar useless people. They will stick on even if they are given Rs100. per month as they are afraid of working elsewhere , because they have no skill. GOO JOB TATA's. BTW, I am a ex TCS'er who couldnt tolerate this hell for more than a year.
all the indian consultants companies based on US market will die very soon. Looking at the value of USD, tcs, infosis will be no more in coming 2-3 yrs. either escape to abroad or invest money in biotech or agriculture.
its good that tcs is cutting salary , instead of 1.5 % they should not have given Hike of 15% as such where these guys will run to , not many will lave tcs.
its a good way to get some new faces in the company , i am bored of seeing the same faces day in day out .
I think it is time for TCS to stop recruitment . In TCS always 40 % peole will be enjoying and doing nothing and getting paid .Time for TCS management to learn , how to use existing employee to use efficiently, to cut cost and make profit .Give them handsome salary .
RE:Time for TCS management to learn , how to use existing employee to use efficiently, to cut cost and make profit .
by Duke on Feb 01, 2008 09:34 AM Permalink
I do perfectly agree with you. they should not a have policy like every indian family has a member in TCS, rather they should think how to feed well the people inside the organization, a good percentage of people are jobless being inside TCS, since the time they joined the organization....I believe, this news will lead into a good number of attrition in TCS.
Why are the internal targets that are set not announced to anybody? How can you show a sustained revenue growth of 5-6% and still say that you have lost in the EVA target set?
The results were declared in the mid of Jan and dividends announced for the shareholders. No cuts in this? Wasnt the management aware of the shortfall at the time of announcing the 3rd Quarter results?
Nothing happens to the shareholders(Management holds many shares), but cuts for employees.
No transparency and hidden the facts to public when declaring results.
All these things are happening because there is no one who question them. Taking advantage of No Employee unions.
RE:No Unions for Employees and they Keep cutting salaries
by Prashant on Feb 01, 2008 03:29 AM Permalink
You dont need unions buddy.. It is free market. If you find another job take it. How unions will help you, if they make deal with leaders?
Be a leader urself. If you are sure u dont deserve what u get quit or keep quite.
RE:No Unions for Employees and they Keep cutting salaries
by on Feb 01, 2008 06:51 AM Permalink
Bceause the next company you go to, the story would be repeated. In the manufacturing sector unions "work" yes I mean "work. In addition to meeting target and most importantly they do employee good. The workers do their work on time complete their and they ask for benefits that they deserve. win-win for everyone
Problem comes due to the greed of management who wants every thing "cheap". Also lot many times media portrays unions as bad. In my opinion if these people are not unionized the management would suck even the last drop of blood from them.
It was all along IT Boom. But the good thing is has made other market to Boom. So next I guess will be Infrastructure Boom. This is what is lacking and Govt has tons of money.
