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| Salary concerns kick in | |
| Priyanka Joshi / Mumbai January 09, 2009, 0:41 IST | |
Satyam’s interim CEO Ram Myanampati’s confession about “dismal liquidity” on its working capital has made employees wary, who a few hours back were assured by the management that their salaries would be distributed on time. Although everyone received their December salaries, employees are dreading that January payouts, due in three weeks, will be delayed.
A Satyam associate in Hyderabad revealed, “Those who have applied for salary advances, reimbursement of expenses, LTA, etc haven’t got it yet, despite waiting for a reasonable period of time.”
In an internal communication to its employees earlier in the day, the Satyam management revealed that clients such as Oracle, Thomson Reuters, Applied Materials, Telstra, Sun and GE have conveyed their support to the company. In response to employee’s questions about salaries, the management responded, “There will be no impact on salaries of associates. We will be mobilising funds through customer collections to keep the operations going.”
In the first half of 2008, Satyam has reported Rs 5,440 crore in revenues, of which almost 60 per cent was paid as salaries.
It was also learnt that employees in the US offices might have to wait for a few days more, before they get their December salaries. Typically, the US workforce is paid by the ninth of every month, through a payment processing agency appointed by Satyam. A US-based Satyam staffer, requesting anonymity, said over phone, “Our salaries are credited on the ninth of every month, but we haven’t even got our pay slips yet (pay slips are usually released few days in advance to help identify discrepancy, if any).” The employees, when questioned the senior management, were told to wait for “a few days as the cash had been transferred to the payroll processing agency.”
An employee from the business development team told Business Standard, “We were told that Oracle Corporation Senior VP has written to Ram Mynampati expressing his support in steering Satyam back on track. This is assuring as this means that company has business and revenues will continue.” The management also assured that by January 12, the US employees would be paid.
Another Satyam worker from its Singapore office communicated, “While salary apprehensions are on our minds, the management hasn’t yet told us about any salary freeze.” He also said that most of the Singapore staff was willing to wait for salaries, as long as their jobs remain intact. “It’s a lesser evil than getting laid off during such times,” he rued.
Another employee wondered, “Even if the January salaries come through, the question that employees are asking is whether payments would be made in February, or are we heading for a mass retrenchment.”
IT outsourcing contracts of over $200 million (around Rs 960 crore) are up for renewal. Some of the major clients who have long-term strategic relationship with Satyam include Unilever, Nestle, DuPont, Cisco Systems, GE, Sony and Applied Materials.
The current move by Satyam is expected to trigger a possible review of their relationships with the company.
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Discussion Board
/ User Comments (6) |
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| mahesh |
January 09 , 2009 ,20:48 IST |
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| The present value of the company is still not know. Even if satyam pays salaries to its employees it has to face lot of judicial proceedings. What about the judicialcase that satyam involved in Upaid. No company would like to acquire it under this circumstances. Seems like there is little hope for satyam |
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| PTI |
January 09 , 2009 ,18:41 IST |
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| According to a PTI report:
With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month. IS this true? |
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| Rajendra |
January 09 , 2009 ,15:01 IST |
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| The Satyam episode has brought national shame apart from tremendous set back to its numerous investors,employees and other business associates.Government must put into place severe checks and balances to avoid such corporate disasters in future. |
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| Ashish2009 |
January 09 , 2009 ,14:02 IST |
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| Look at their salary data on salary list.com http://www.salarylist.com/all-real-jobs-salary-at-satyam-computer-services-ltd.htm They pay very decent salary, and the boss knows they have problem? |
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| KRIS |
January 09 , 2009 ,11:37 IST |
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| Many Customers would stop working with Satyam and Indian IT due to lack of faith.Many of Satyams existing contracts are unlikely to get renewed.Wether one wants to believe or not Satyam would not have cash to pay either salary or continue with operations. Even if a merger or takeover happens, Customers are unlikely to continue with the same faces. Will the proceeds from sale of satyam or merger ensure employee pay and therby not impacting the ecomomic chain |
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| taxpayee |
January 09 , 2009 ,11:27 IST |
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| Let?s face it, Raju is just a common thief. He stole from the people who put their trust in him. And as for his conscience, where was it when he was trying to push throught he Maytas deal? To me he is worse than a terrorist because has destroyed the lives of 53,000 families who placed their trust in him. And no I?m not an angry Satyam employee, but a tax-paying citizen. It?s a pity he will only go to jail for 10 years, because people like him should be put away for life. |
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