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HYDERABAD: Satyam Board has announced that to address the issue of excess employees, it is launching a Virtual Pool Programme (VPP), a one-time
programme, effective June 2009, to address staff costs while retaining talent inside the company.
However, all the 10,000 surplus employees of Satyam Computer, who feared unemployment, can breathe easy currently as the company’s new owner Tech Mahindra said there will be “no retrenchment.”
“The surplus employees would be put in a separate pool and would be paid basic salary, provident fund and medical insurance, and at a later stage if they still needed a job they would be real considered for employment,” Tech Mahindra CEO Vineet Nayyar said.
VPP is applicable to those based in India and allows associates near take time-off from work on a reduced pay structure -- for up to six months while they continue to retain their employment with the company. The company anticipates that approx 7,000 to 10,000 associates will be part of this programme, during the period that it is in operation and will cover associates who have not been in billable roles for three months or more and includes support resources.
“The programme is an innovative method of retaining the excellent human assets of Satyam despite the difficult global economic situation. The recessionary climate that has seriously affected the IT industry, in addition to the unprecedented set of events that Satyam faced recently, has added to its pressures. It is a unique way of retaining associates and developing them further through training, while ensuring the financial viability of the company,” said Kiran Karnik, chairman of Satyam’s Board.
programme, effective June 2009, to address staff costs while retaining talent inside the company.
However, all the 10,000 surplus employees of Satyam Computer, who feared unemployment, can breathe easy currently as the company’s new owner Tech Mahindra said there will be “no retrenchment.”
“The surplus employees would be put in a separate pool and would be paid basic salary, provident fund and medical insurance, and at a later stage if they still needed a job they would be real considered for employment,” Tech Mahindra CEO Vineet Nayyar said.
VPP is applicable to those based in India and allows associates near take time-off from work on a reduced pay structure -- for up to six months while they continue to retain their employment with the company. The company anticipates that approx 7,000 to 10,000 associates will be part of this programme, during the period that it is in operation and will cover associates who have not been in billable roles for three months or more and includes support resources.
“The programme is an innovative method of retaining the excellent human assets of Satyam despite the difficult global economic situation. The recessionary climate that has seriously affected the IT industry, in addition to the unprecedented set of events that Satyam faced recently, has added to its pressures. It is a unique way of retaining associates and developing them further through training, while ensuring the financial viability of the company,” said Kiran Karnik, chairman of Satyam’s Board.
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