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  1. IT industry layoffs: FITE approaches state government to save sacked techies

IT industry layoffs: FITE approaches state government to save sacked techies

Forum for IT Employees (FITE), the umbrella body representing software professionals in various companies, on Friday requested state governments to look into the issue of termination of employees by IT companies.

By: | New Delhi | Published: June 17, 2017 5:19 AM
IT sector, Forum for IT Employees. Cognizant and Tech Mahindra As the IT companies look to reduce the number of employees at mid-level, it has sent a shock wave among all employees working in the sector.

Forum for IT Employees (FITE), the umbrella body representing software professionals in various companies, on Friday requested state governments to look into the issue of termination of employees by IT companies. The Forum had already met IT minister in Karnataka to take steps for the welfare of the employees and they would soon meet his counterpart in Tamil Nadu.
Addressing a press conference here on Friday, FITE general secretary A J Vinod said that since the state governments provide land in discounted rates to IT firms to set up units and offices in their respective states, they should support the employees when companies ruthlessly retrench them.

“State governments give land at discounted rates in special economic zones (SEZs) for IT companies to set up their respective offices. Besides, the government also encourages IT companies to set up offices, as the companies would create huge employment opportunities. Therefore, we seek the state governments’ support,” Vinod said. He said that close to 60,000 employees working at various IT companies have already received termination orders from services. In the next two years lay offs by such companies was expected to be around two lakh across the country. “Besides seeking reinstatement of dismissed employees, we want state governments to support the employees as several funds are paid by these people as taxes when they were in service,” he said. The Forum was also gearing to register itself as a recognised employee union in various states.

Vinod said FITE, which has been spearheading the cause of IT employees, has filed  around 85 petitions with the labour department of various states against various IT and other companies for alleged lay off from the company.  A total of around 100 employees will be filing complaint against their companies, under its guidance in the next few weeks. The Forum claimed that 47 employees from various organisations including Cognizant, Wipro, Vodafone, Syntel and Tech Mahindra have filed petitions with the labour department in Pune, while 13 petitions has been filed at Hyderabad by Cognizant and Tech Mahindra employees.

The petitions had been filed under the Section 2A of the Industrial Disputes Act, 1947, which is for individual petition and Section 2K of the Act, which is for collective petition.

Cognizant and other companies have refuted the allegations and stated that they are not laying off their employees.

As the IT companies look to reduce the number of employees at mid-level, it has sent a shock wave among all employees working in the sector. FITE has already filed petitions at various labour departments demanding intervention to stop illegal terminations across the country.

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In cities like Bengaluru, IT sector is one of the main job industries and layoff or illegal termination or forced resignation means destroying livelihood of many families, and is not justifiable in any way.

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