Transition of 1000 Verizon Employees to Infosys – New Trend for India or a new way to layoff employees?
Infosys is in news this week for winning $700 million deal with Verizon. It is termed as one of the largest IT outsourcing deals signed by the firm in the recent times. As per the company, this deals involves transition of application development & Management (ADM) services and business process management services. This is published in a few newspapers like any other large deal order wins in IT companies. (Read ToI coverage here )
Our NDLF IT Employees Wing is in touch with a few of the Verizon employees and gathered inside information from them.
This deal is actually a sale of part of Verizon business along with employees to Infosys. Some of the projects are taken over by Infosys after this deal.
We are publishing below the email communication of one of the affected employee who is forced to move to Verizon. As per this communication, Verizon is gushing that Infosys is the most fortunate option for Verizon employees and salary will be comparable with the base salary as a whole.
Based on ourconversation with Verizon employees, the following is what is planned as part of deal:
- Verizon employees will be moved to Infosys starting from Nov 2018. These employees currently working in Verizon have to submit resignation in Verizon. They will be provided with Infosys offer letter. Verizon employees will be officially relieved from Verizon and recruited in Infosys
- The employees are promised that the pay structure, role and all other benefits will be matched n new offer.
- This deal mostly involves movement of employees working in US and India. Here employees of Verizon are not given any choice to reject the offer and to continue with Verizon.
- If employee resists to resign, employee will be terminated from Verizon with 2 months notice period in India.
- If employee resists to resign in US, minimum compensation is planned as per land of law in US.
- Leave balance, gratuity, other specific benefits will be compensated by Verizon before they move. In other words, employee will not be able to transfer leave balance or any other prevailing benefits exist currently for them to Infosys.
- The employees moved to Infosys will be working in current Verizon projects for minimum 1 year and they will not be rotated to any other projects within Infosys for one year.
- Seniority of these employees will not be carried forward to the new company. For example, if an employee worked in Verizon for 4 years, he/she is not eligible for gratuity as minimum term required for gratuity is 5 years employment. If that employee moved to Infosys and worked for 4 years in Infosys and resigned, she is not eligible for gratuity in Infosys also. In other words, senior Verizon employees are considered as any new joiner in Infosys.
The following are the queries as part of this deal from employee side and from union side:
- This is such a big news and more than 1000 of employees are moved from 1 company to other. Why this news is not published in employee point of view? Why media blackout this news?
- Why Infosys management not come out and clarify about the overall transition plan? The employees have various concerns on location, pay structure, roles and current benefits they have and how it is going to match in Infosys. Why Infosys is not giving any assurance which will help employees to understand what is their overall plan?
- Does Infosys guarantee the confirmation of these employees as usually employee will be confirmed 6-12 month after their movement?
- What is the role of government in this? Verizon during last year retrenched more than 1000 employees using bouncers. Who will validate and ensure transition is happening with the best interests of employees of Verizon?
- If employee resists to resign, how Verizon has the authority to retrench as feared by their employees?
- Verizion is a better pay master compared to Infosys and how Infosys will match Verizon employee salary. If these employees complain about the offer received, how Infosys will bridge the gap?
- The pay structure of this companies are different and Infosys has more variable pay compared to Verizon and also we are not sure how this will be matched properly.
- How seniority of Verizon employees will be translated to Infosys? How progression and other benefits in the future are going to be handled in Infosys?
- As per employees, if employee resists to resign in US, severance pay is paid as per land of Law. Why Indian law is not considered and same applicable for Indian employees of Verizon?
Read more employees concerns here https://www.thelayoff.com/t/UTxo80A
Some of the comments below:
“Does anyone know what the criteria they used to determine who was retained and who was moved to Infosys? Other than Directors kept the people that are top A$$ Kissers and most men were retained i can’t see any other criteria.”
“After Hans came to the leadership his first goal was to completely move the IT services to third party.. People are trying to cut costs and destroying lives 🙁 How many good people are there in VZ and they’ll be now moved to Infosys without proper benefits and we have not heard what Infy has got to say! As far as I heard they’ve started recruiting people already for this!”
“Does any one know the fate of people being retained in Verizon? I know folks moved to Infosys may stay there for 12 months and then may come out on to the road. don’t think the fate of retainers is good. Does retained people get package? Even though some good package is offered, are you sure they all get whoever wanted to get one?? There should be some uncertainty or magic behind the scene. Agree?”
“Yes, Verizon did outsource majority % of their IT work of certain Business units to Infosys. People have a problem with layoff. So they found another company to offload them -> Infosys. People have a problem with this too. What they are forgetting is that the folks who are retained, they have a uncertain future as well. You never know when they can be dumped too (irrespective of the fact that the rumour is 50% of CTC as bonus if they sign the 2 year bond).”
In ancient times, slaves were transferred from one master to the other. No information will be given to slaves during the entire deal. Here corporates are dealing IT employees as slaves from one company to another. But none of the media cover the news.
This is a big move in Indian IT industry and first of its kind with high number of people transitioning. Here we are transitioning people with flesh and brain and this should happen in a transparent manner with open public debate. Both the company should come forward to clarify all the basic queries of all employees. They should abide by the law of India while doing such transition and abide by policies/laws to be followed while doing this transition.
The employees of Verizon are afraid that it should not happen like last year with involvement of bouncers against the will of employees. Verizon also should not recruit more bouncers to initiate the transition and Infosys also should ensure/clarify to have smooth transition.
Verizon employees are confirmed employment in Infosys only for 1 year. They are afraid that they will come to road after 1 year. Employees who are not part of this deal are afraid what will happen to their jobs as Verizon lay off 1000+ employees last year.
The various concerns raised by employees related to job retention, salary match between the companies, and loss of gratuity and leave encashment, loss of seniority in new company, promotion and salary hike for newly joined employees in Infosys after 1 year, work location constraints should be validated and clarity should be obtained to all employees in this regard to ensure smooth transition
Our NDLF team is in regular touch with Verizon employees who are affected as part of this transition. We want affected employee to reach out for any help as part of this transition.
On behalf of the employees, we demand that Verizon and Infosys managements should hold joint meeting with employee representatives to discuss the transition plan. The plan should be modified to take into account the concerns of employees.
After all, employees make IT services company like Infosys and product companies like Verizon. Stop treating them like resources, and talk to them as professionals who bring in the revenues and earn profit for the company.
– Shyam Sundar, President,
NDLF IT Employees Wing