Satyam's virtual pool staff to get no pay after Dec 18
BS Reporter / Hyderabad Oct 23, 2009, 01:03 IST
The company has a total of 34,000 employees globally.
Satyam Computer Services, which has been rebranded as Mahindra Satyam, has said that it will not pay salaries to employees in the virtual pool after December 18. Earning reduced pay at present, the employees in this pool will have the option to stay on the company’s rolls without pay till March next year.
The company, which was tainted by the near Rs 8,000-crore fraud perpetrated by its founder Ramalinga Raju, had put 10,000 employees, which it calls associates, in the virtual pool in June because there was not enough work to keep them busy. They were to get reduced pay and stay on the company’s rolls till December 18. The company has a total of 34,000 associates globally.
In an email to the associates, the Satyam management stated: “We continue to recall, based on need and project requirements. However, it does appear that we may have constraints to reinstate all of those who are on VPP. Under the circumstances, we have informed our associates on VPP that we are constrained by this reality and have extended the option for them to continue on our rolls, albeit without any pay (should they choose to do so) for a further period of three months — that is, from December 18, 2009 to March 18, 2010.”
During this period, the VPP staff will continue to have access to VPP services, including virtual learning and outplacement services. Additionally, the ‘loss of pay’ status would also be considered for their service period, the company said in the email.
A spokesperson said the company, till date, has recalled over 1,200 of the VPP associates and would explore the option of recalling the remaining associates during the extended time till March 18, 2010, “if any requirements emerge”.
“We will continue to leverage the VPP pool for all our future requirements and consider cross-skilling and re-skilling before any external hiring is initiated. We would like to reiterate VPP identification and actions thereon were indeed a one-time programme and what was communicated to associates on VPP earlier this week, is in line with the requirements under the terms and conditions of employment,” the company said in a release today.
It is really sad that unprofessional organisation like this thrives under government protection for violating the labour law act . The company is earning huge profits in various outsourcing deals and the CEO's are paid in hefty . The techies are made scapegoats becuase now they can't share their deal with them . Simply one word of appreciation -"Hats off to marwari culture in IT "
Satyam is setting a very bad precedent in this growth oriented country. What is the Corporate Affairs Ministry doing. Is this mass sacking any good at all at the so called growing economy. Mr. Prime Minister, Manmohan Singh, please intervene, its high time.
There are so many support service staff, still doing nothing but enjoying regular rolls and full pay, because they possess the greatest skill of flattering the old Satyamite seniors. Those seniors should axe themselves first, if they think they are thorough professionals and want not to earn curses. QUIT SENIORS FIRST
This is very predictable, no big shock, as many who are in regular rolls think. Once the merger between TechM and Mah-Satyam happens, the ones on regular rolls will also face the same fate. Imagine 30,000 employees of TechM and 30,000 employees of satyam make it 60,000. Easily another 20,000 will go. Beware staff....
The corporate fox has once again won the game, with government playing the hand in glove role. read it as 10,000 families and not 10000 employees. Is the apex court watching. will they give a break to such kind of layoff's, rechristened in the name of VPP.
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