Stricter safeguards for IT sector
NITES, which had previously picked up cudgels on behalf of over 300 Infosys trainees at the Mysuru campus, are advocating for the framing of stricter safeguards for the IT sector. The union has also claimed that the industry currently lacks employment protections.
Other than demands of halting the job cuts and reinstatement of the employees, it has also called for an “inquiry into the systemic pattern of forced exits, delayed onboarding, and unlawful retrenchments by TCS”.
A quick look at TCS layoffs
India’s largest IT services company TCS announced on Sunday that it plans to lay off roughly 12,200 employees or 2 per cent of its global workforce this year. The bulk of the impact will be felt by middle- and senior-level employees.
Labelling TCS’s latest move as a blatant and wilful violation of the law, NITES said: “The law clearly states that no employee who has served for over a year can be retrenched unless the company provides one month’s notice or wages in lieu, pays statutory retrenchment compensation, and notifies the government.”
Adding to this, the union claimed that TCS has not complied with any of these requirements.
Devastating impact on employees
NITES noted the devastating impact of the layoffs, adding that thousands of working professionals with families, EMIs, and financial commitments would suddenly lose their livelihood.
The psychological, emotional, and financial trauma of this move is unimaginable, Harpreet Singh Saluja, President of NITES, wrote.
Saluja also said that TCS’s proposed move “will normalise job insecurity, erode employee rights, and severely damage trust in India’s employment ecosystem.”
NITES also issued a warning of organising nationwide protests, legal campaigns, and public demonstrations if justice is not served.
Jefferies report about the layoffs
Meanwhile, Jefferies in a report titled “TCS’ layoffs – A canary in the mine?” said the company’s decision to cut 2 per cent of its workforce may cause execution slippages in the near-term and increase the attrition rate in the longer run for the company.
The report also said that the recent events reflect a weak demand environment for the sector.
Jefferies’ report further said that despite not being the best paymaster, TCS has maintained lower-than-industry attrition levels as it offered a long-term career path and job stability to its employees.
“In the near term, the ongoing lay-offs will hurt employee morale and could potentially lead to execution slippages. In the longer run, such policies could drive a sharp rise in attrition, similar to what was seen at Cognizant during 2020-22,” the report said.
(With inputs from PTI)
