CORONA VIRUS HAS DEVASATED WORLD ECONOMY, Impacted Humanity. Economy is temporarily on hold.
COVID-19 HAS DERAILED HUMAN MOVEMENTS. Primarily it is questioning survival of Middle class and Lower class.
Amidst Corona Epidemic wherein Corporate need to support their staff or employees, they are deducting salaries range from 10-50%. Some of corporate are even not paying salaries or has done lay-off. Salaries reduction is primarily reported in Engineering equipment, Capital equipment, Aviation industry, other manufacturing. Layoff and not paying full salary is reported in sectors like Insurance, Restaurant, Entertainment, Malls, and Fitness etc. Not commenting on Travel industry since totally closed.
For Middle class person having salary from 10-50k, even in normal scenario it is difficult to survive in metros. After salaries cut it will become more difficult to manage their expenses like school fees, House rent etc.
Employees’ loyalty has gone into vain within 50days of lockdown.
One side where in Corporates does not have money to pay salaries to their employees. Corporates has made huge contribution to PM Cares fund.
India’s newly established coronavirus relief fund, PM Cares, has got phenomenal contributions from celebrities, tycoons, and corporates.
India’s most valued company Reliance Industries, seemingly flush with cash after the recent investments by Facebook , announced salary cuts and the postponement of performance-linked payments in its hydrocarbon business. Yet, Reliance contributed Rs 500 crore to PM Cares.
Contributions to PM Cares can be legally counted as part of a company’s annual corporate social responsibility contribution.
Although it is understood that corporate must assist government during this tough time, it seems net financial burden is passed on to employees.
We are observing the corporate are using pandemic to adjust their CST obligations and earn positive repo at the expense of their staff.
This particular situation of assisting government during pandemic has created mistrust between employees and corporate of distressed companies.