Cut salaries instead of laying off staff: Karnataka govt to IT firms

Bengaluru, Apr 17: Karnataka has asked all Information Technology and allied companies to cut salaries instead of laying off employees during the coronavirus lockdown.

Deputy Chief Minister, C N Ashwath Narayan held a video conference with industry leaders. Biocon CMD, Kiran Mazumdar Shaw and Infosys co-founder Kris Gopalkrishnan among others were part of the meeting. The Deputy CM took stock of the readiness for the NT/BT companies to resume operations after April 20.

During the meeting, it was discussed that there should be no employee layoffs. Instead, salary cuts can be taken up so that the functioning of a company itself is not affected, given that there have not been many new business orders.

The IT/BT minister, Narayan said that IT/BT companies can start operations with 50 per cent strength from April 20. Some concerns were expressed with regard to passes to the employees and vehicles. We told them that after April 20, there will be no pass system in existence. However, 50 per cent workforce will be permitted. It would take a few weeks for the companies to mobilise this. The government will facilitate companies to hire BMTC buses on contract to ferry employees to work, he also said.