Retain staff with pay cuts, don't sack them: Karnataka government to IT firms

Karnataka on Friday asked information technology and allied companies to cut salaries instead of laying off employees during the Covid-19 lockdown.

Deputy Chief Minister C N Ashwath Narayan held a video conference with industry leaders, including Biocon CMD Kiran Mazumdar-Shaw and Infosys co-founder Kris Gopalakrishnan, to take stock of the readiness for IT/BT companies to resume operations after April 20.

Follow live updates on coronavirus

“It was discussed that there should not be layoffs. Instead, salary cuts can be taken up so that the functioning of a company is not affected, given that there haven’t been many new orders,” Narayan who is the IT/BT minister, told reporters after the video conference.

Bengaluru is hailed as India's Silicon Valley. But in the wake of the lockdown, there have been reports of companies laying off employees to trim costs.

Follow the state-wise total of confirmed coronavirus cases here

From April 20, IT/BT companies can start operations with 50% strength, Narayan said. "Some concerns were expressed with regard to passes for their employees and vehicles. We told them that probably after April 20 there won’t be any pass system in existence," Narayan said. "Although 50% workforce will be permitted, it will take a couple of weeks for the companies to mobilise this. The percentage will increase gradually and things will head towards normalcy," he said.

The government will facilitate companies to hire BMTC buses on contract to ferry employees to work.

According to Narayan, protocols will be worked out for containment if Covid-19 positive cases are reported at workplaces. "So far, we have been planning for residential areas. If any positive cases are reported in office spaces, should we shut down or should we just screen employees, sanitise the place and continue working? Once relaxations are given, it will become a usual phenomenon where cases will continue to be reported here and there. We discussed how such a scenario should be handled," Narayan said.

Narayan also told the industry representatives that Internet and connectivity services will be ensured. "Customers are complaining of lack of access to recharge. So, we have asked for opening up of retail recharge facilities," Cellular Operators Association of India director-general Rajan S Mahews, who was part of the video conference, said.