Bajaj Auto reverses pay cut decision

Bajaj Auto Waluj
Bajaj Auto Management and Unions were unable to reach an agreement on whether the operations should be suspended to contain the spread of the infection. The unions demanded temporary closure of one of the company’s plants at Waluj in Aurangabad district.

Bajaj Auto on Sunday said in an internal letter to its employees that it will not implement its proposed decision to observe a pay-cut across the organization for April and assured them of complete payment for the lockdown period.

Earlier Bajaj Auto had proposed a 10% pay cut for staff after all business activities were halted due to the lockdown to contain the Covid-19 pandemic. Managing director Rajiv Bajaj had decided to forego his entire salary for the period.

Communicating with employees, the company has said: “We have come to the conclusion that this is a time when we must act more from our hearts than our minds.” The decision to pay in full has been made despite the fact that employees were ready to go in for a wage cut for the period from April 15-30.

The copy of full letter

Dear Colleagues, Friends,

‘The heart usually knows what to do. The challenge is to silence the mind’.

Today, in the context of the proposed organisation wide voluntary wage cut for 15th – 30th Apr 2020, we discussed the argument for reciprocity in the relationship between an organisation & it’s employees ie that just as both share in the gain in the good times so must they also share in the pain in the bad times.

Equally we asked ourselves whether a large & profitable company like Bajaj Auto ought not to cushion against the impact of this pandemic & the associated lockdown it’s people who have earned it the distinction of becoming the World’s Favourite Indian, with industry leading metrics.

We have come to the conclusion that this is a time when we must act more from our hearts than from our minds.

Our business depends first & foremost upon each & every one of us, from the top to the bottom. Thus before we reach out to support our larger society, we are obliged to first secure our own; so long as we can help it, not a single child of the last contract worker must sleep hungry on our watch.

We have hence concluded that everyone including all of the contract labour engaged by us will be paid their full salary for Apr 2020. We will next review this matter towards the end of May taking into account the degree of positive impact on our business of the implementation of the progressive unlocking that is anticipated.

So for the moment, without the added burden of any wage related financial stress, we can hopefully better focus all of our energy on the safety & well being of our families. And then, as soon as we’re open for business, we shall as always as one spirited team have Bajaj Auto roaring back upon global roads full throttle!

We send you our love, prayers, & good wishes.
Human Resources.

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