Cognizant (CTS) employees saw their entire variable pay swallowed up by the company inspite of the company making healthy profits for 2016. And to increase operating margins from 18.5% to 22%, they have pushed 7% of company’s workforce into MS rating (4th bucket) and are deliberately forcing them to resign through blackmail, illegal threats and underhand means.
But it is not all rosy in other companies. Here is a message from a TCS (Tata Consultancy Services) employee. It is self explanatory. As usual added comments in square brackets.
– Variable allowance reduction
– Average hike 4-6% in India
– Tcs has grown good in business environments but…….
– “For development of TCS, give up your allowance and hike..” [that means the Finance big wigs want to eat employees’ allowance and hike]
– Does it sound like something similar..
– “For development of nation, nothing wrong in giving up your gas subsidies, people standing in queue and farmers losing their land” [so that Modi government can give loan waiver, tax concessions and subsidies to corporates]
If you are wondering what are the 4th quarter results. Here are the numbers.
Net Profit – Rs 6,778 crore (4.23% jump on a year-on-year basis)
Income from operations – Rs 29,642 crore
the full fact sheet released by the company is here
- INR Revenue of Rs 1.18 lakh crore (growth of 8.6% YoY
USD Revenue of $ 17,576 Mn (growth of 6.2% YoY)-
- Constant currency revenue growth of 8.3% Volume growth of 8.5% YoY
Operating Income at Rs 30,324 crore
Operating Margin of 25.7%
Net Income at Rs 26,289 croreNet Margin of 22.3 %
This 25.7% operating margin (Rs 30,324 core) includes money taken through employees’ variable pay cut. That is for every Rupee earned by the employees, 25% is nett of all expenses (salaries, office, travel etc etc).
Further last year TCS added 78,912 new associates and 45,532 were sent out (Net addition of 33,380) according to the fact sheet. These forced resignations did not make to the news, that is all!
Put up a fight guys!