The IT sector, which is feeling the impact of the lockdown and the COVID-19 pandemic, has started taking measures to contain the fallout. Many IT and ITeS companies have begun cutting salaries while some are reportedly giving employees pink slip in defiance of the government order against taking such a drastic step during the 21-day lockdown.
The developments seem like a replay of the conditions in 2016 when many a company from the technology space began to rationalise or defer hiring of those selected during campus placements. Come 2019, the COVID-19, the novel coronavirus began wreaking havoc in China. By March 2020, it's spread like wild fire, impacting most businesses.
As businesses foresee a big dent in future, there have been indications of some IT/ITeS companies starting retrenchments and salary cuts. An indication was given by the Karnataka State IT/ITeS Employees Union, or KITU, strongly condemning this ‘illegal and inhuman act’ by managements.
The KITU, in a statement, said that it supports all employees and extended all support to the affected employees. The union has asked the employees to refuse to resign if asked to do so by the management.
“Acting against the GOI direction during this catastrophic situation is acting against the nation's interests. Hence, KITU demands the urgent intervention of the government to this matter and also requests the government to take stricter action against the companies who violate the advisory and labour laws,” the union said.
The KITU urged the companies to respect the law of the land and not to indulge in retrenchments even after the lockdown period.
The impact of the coronavirus is being seen on the campus recruitment front too. The director of an IIT has gone public with his frustration over the possibility of firms rescinding their campus offers.
