Economic slowdown hits Bengaluru hard; layoffs, pay cuts up to 30 per cent

Several affected employees have approached the State Labour Department seeking directions to their companies to protect their jobs and their salaries. 

Published: 17th October 2019 05:27 AM  |   Last Updated: 17th October 2019 11:47 AM   |  A+A-

Infosys campus at Electronic City in Bengaluru (File | Pushkar V, EPS)

Express News Service

BENGALURU: The economic slowdown has not just affected big industries, but also medium and small scale industries, with several firms in Bengaluru either sacking their employees in large numbers or asking them to continue with up to 30 per cent cut in salaries.

Several affected employees have approached the State Labour Department seeking directions to their companies to protect their jobs and their salaries. 

Labour Minister S Suresh Kumar said his department was aware of the “unfair practices”, especially related to salary cuts in some companies and a probe has been ordered. “I will interact with the staff and the owner to understand the ground reality,’’ he said. 

Among the worst-hit sectors are automotive industries, textiles and manufacturing. The slowdown has impacted to such an extent that in Peenya Industrial Estate in Bengaluru, many firms are struggling to even get enough work for a single shift, leaving several employees without work and still being continued to be paid salaries.

“We have learnt that over 1,000 employees have been told to leave in an automotive manufacturing firm and the situation was similar in another firm. The industries do not inform us. Only when employees approach us, we get the information,’’ sources from Labour department told The New Indian Express.

Myladri Reddy, former president of Peenya Industries Association, said there are over 10,000 medium and small scale industries in Peenya. “At present, at least 40 to 50 per cent of them are affected. They are neither getting orders nor payments. When there are no orders, there will be no work. These industries work in three eight-hour shifts,” he said.

“Now we are in a situation where it is not possible to work even one shift. There is no order, no work. Large number of people are depending on these industries. At present, there are no lay-offs, but salaries are being paid with utmost difficulty,’’ Myladri Reddy said.

However, other sources from Peenya Industries Association have confirmed there have been lay-offs in these industries. “They are not directly calling it lay-off. Every year normally during Ayudhapooja or Deepavali, industries give bonus or some goodies to their employees. Also, during that time, they are not given leave as their hands are full with orders. But this time, many could not even give bonus, and some even told their employees to come after one or two months,’’ one of the industrialists told TNIE on condition of anonymity.

C R Janardhan, president, Federation of Karnataka Chamber of Commerce & Industry (FKCCI),  said this slowdown has impacted the automobile manufacturing industry, and there are other industries depending on this sector. There are no takers from these manufacturing industries. Since there are no orders, they are not able to generate revenue. “When there is no revenue, they cannot pay their employees from their pockets and obviously there will be lay-offs or salary deduction,’’ he said.

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  • Govi Sampath

    the government could have given a one-off grant for festival expenses for many of the poor people. I can recall a time when the only new clothes we got was for the festival season- Dassara or Deepavali.The money could have come in useful for the family and there would have been the necessary support to the textile sector.
    24 days ago reply
    • Sampark

      Good idea! Also
      18 days ago reply
  • Habib A Zuberi

    Bengalura represents the true face of Economic policies of BJP. See what more is there.
    25 days ago reply
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