On 23 May 2020, Two-wheeler manufacturer TVS Motor Company has announced to cut the salaries of its employees starting this month, May 2020, as it grapples with a steep fall in sales, common across the industry. Though the company has clarified there will be no salary reduction at the workmen level.
The company’s CEO, KN Radhakrishnan said, “The company has chosen to rollout a salary reduction across different levels for a period of six months, starting May 2020 to October 2020. We will review the situation depending on the business condition that exists then”,
“In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months (May to Oct, 2020). There will be no salary reduction at the workmen level. However, there will be a 5 percent salary reduction at the junior executive level and about 15 to 20 percent at the senior management level. It was heartening to see employees coming forward and offering to take salary reduction voluntarily”, TVS Motor Company spokesperson said.
“It was heartening to see employees coming forward and offering to take salary reduction voluntarily,” the spokesperson said.
TVS Motor Company has reported a 62% decline in domestic sales at 94,103 units in March 2020. The company’s sales volumes were nil in April on account of the nationwide lockdown imposed to check the spread of the pandemic.
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