TCS Layoff and Why trade unions have failed in IT Sector?

IT industry doesn't have trade unionism till date, now under threat. When news came that TCS was sacking 25,000 employees, some of the employees loosely structured union to fight the management and prevent the sacking , known as Forum for IT Employees (FITE) and some of them taken the roads to show the support also. Politicians , CITU,INTUC want to participate and they want to spoil the mood of the real issue.

IT is very people centric and entire business run by people skills thus unions comes and restrict about whom to hire and which projects to consider, will seriously jeopardize the IT business.

Trade unionism is only to have Job security, for those wanting to stick to one company till retirement.As a professional, each one need to perform for one self to protect their job. There is fear of getting black listed. If employees are known to create a trouble in one IT company, getting hired in another IT company will become difficult.

But, in IT , professionals will look for better work content and higher pay every year.Thats why IT sector has higher attrition rate (~30%/year)


TCS clarified finally, only 2,574, or 0.8 per cent of its overall employee strength are asked to leave who are under performers…Good news.. TCS target was to hire 55,000 professionals in next 2 yrs. Fire n Hire Policy to sustain in this Business.

People in the middle management who are paid Rs 40-50 lakh annually don't need Union support. Entry-level employees will not risk spoiling their careers rather they will keep quiet and go somewhere else because there are lots of jobs around.


Narayan Murthy reply regarding Pink Slips in AGM's : “Always remember, performance is the criterion to remain in a job. Even if there is cost cutting, you will be evaluated on your performance before you are issued a pink slip. So, always focus on the performance”

Few years back , during recession time, we were pulling out data to analyze the statistics. There were ~350 mid-level managers doesn’t contribute to company’s growth in last 3 yrs (They were not directly generating any revenue through billing from customer) . Their immediate managers were just protecting them. Many were asked, why now you are doing...Yes. these things will pull out only during crisis...


Some times, these Bell Curves make you to laugh during appraisal process. HR team will decide the Bell curve and make sure 50% of the employees will be in C band (Met expectations, where usually target during the crisis ie.TCS layoff consideration) , 10% in A and 30% in B band and 10% in D band (these guys were asked to leave immediately after appraisals).

At mid-level , 90% of TCS employees will confront that they stick to the company only for onsite opportunity.

Layoffs are part of the unending improvement in corporate vitality. Without this backbone, no company can survive the stiff competition it faces in day-to-day business.

To all my IT friends :

No organisation owes you a job for life. Companies are here to create wealth for their shareholders, not for giving life-time jobs to employees.

No job is permanent. Today, it may be TCS, tomorrow it could be your organisation. And god forbid, it may be you on the block.

So be realistic; live within your means, always upgrade your skills, always keep searching for better jobs and never ever believe any organisation (Work and expect your salary by end of the Month).

Layoffs can happen anytime and To anybody.

 

D & E are any way have to go now or later...Here the concern about "C" Band, who Met the expectations. Actually, we need to protect them. But, company decides to throw them out....Dont know who will raise the voice for them... I never said need not to worry...Need to worry , how to protect You and your family. Many can sense the layoff's. If you are not in project for 3-6 months, your turn will be next...Time to look for suitable job...

These under performer definition will change every time.. High salaried employee in C band will be main targets....

 

It may or may not be true..Am not legal expert. But, all the workmen are covered under industrial laws. IT sector consider as industry as per legal experts.In IT people t In IT People think that they earn so much more money and they are not workmen. Its perception..

 

No Comments. Definitely not equivalent to Govt job..Paid more of course...

Not all IT jobs are low end Work. Many projects were good and able to complete with better QoR than peers with low cost.