TVS Motor Company has announced pay cuts for its employees for six consecutive months as the automobile sector's sales fell during lockdown.
TVS Motor Company has announced pay cuts for its employees for six consecutive months as the automobile sector’s sales fell during lockdown. Starting from May till October 2020, the employees of TVS Motor Company will take lesser salaries as the company finds ways to grapple with a steep fall in sales. “In the wake of the unprecedented crisis, the company has rolled out a temporary salary reduction across different levels for a period of six months (May to Oct, 2020),” PTI cited a company spokesperson as saying. The company had paid workers in full for the April month. While the company hasn’t imposed salary cuts at the workmen level, 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.
The current crisis is a fresh blow to the auto sector which was already reeling under a prolonged slowdown by the end of the last year. The auto sector witnessed piling inventories and falling sales as issues such as economic slowdown and liquidity crunch continued to haunt it. The passenger vehicle sales had declined by about 18% according to data from Society of Indian Automobile Manufacturers (SIAM).
As the country was under a nationwide lockdown since 24 May, TVS Motor, which is the third largest two-wheeler company in India, had recently recommenced operations at all of its manufacturing facilities across the country on 6 May. TVS Motor has four manufacturing plants. Three of them are in India itself — Hosur in Tamil Nadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh while one is set up in Karawang, Indonesia. TVS Motor also exports products to over 60 countries while having a strong foothold in the domestic market.
Meanwhile, coronavirus lockdown has started to crack up many businesses with companies across various industries implementing both salary cuts and also laying off staff.