Monday, March 2, 2009

Time and Importance for IT Unions / United IT Associates in IT Industry - India

When all the IT & ITES Companies can form under an umbrella called NASSCOM to protect and lobby with the Govt of India why not employees form a Union.

When Companies lay off their employees with out a formal procedure and mechanism the employees though most of the companies in IT & ITES are not loss making companies.
All or most of the IT & ITES companies are getting benefits from Govt in the form INCOME TAX exemption, nominal land prices, Power, Infrastructure .. whose Property is this ? Is it not People of India’s ?

The Only reason for all IT & ITES Companies under the STPI umbrella asking for INCOME TAX EXEMPTION is this IT Industry is a SUN rise industry and also in infant stage. The companies want Govt to provide help in terms of Tax, Land allocations, Lower power tariffs etc.. claiming they are providing JOBS to people and their by increasing the direct and indirect jobs to millions of others. But they forget that the IT & ITES employees are providing direct & Indirect employment to others.

The IT & ITES employees are the highest TAX payers to the Govt as their income is taxed at source ( at the company level itself ). This way they are directly helping the country in building the schools, building, roads, infra. Set up, health, education what more all things you can think of.. that is included in the budget.

When employees pay taxes to the Govt while working but Govt does not provide any security / social support system to their lives. Why not Govt think similar lines of the countries like USA etc.

How many companies are having social responsibility ? What is their profit contribution to society ? Hardly few..!! Even they got huge benefits from Govt in the form of cheap lands, power etc.

When companies terminate employees because of fake experience they produce.. Are they not getting the projects from the clients though they do not have the skills, capabilities, experience, and reference? Are they not violating basic Ethics? Where do they get the moral right to terminate employees? What will Companies will do if the Govt / employees also debar these companies who are involved in violating the rules, ethics, social responsibility?


The current trend / standard.. If the company finds an employee with fake experience then it terminates the employee. Why not they also terminate the HR managers who are also involved hiring process ? Also are the companies informing the client about it ? Are they terminating the contracts with the Client ? they are not doing any thing like this.. This is also one of the reason IT & ITES employees should form a Proactive, constructive, employee friendly, growth oriented development focused, socio-economic frame work based Association that talks on behalf of employees with the GOVT, with Companies, with Clients, Forums etc.

Normally when employee works more than 8 hour’s employees get Over Time ( O.T ) benefits. Though the IT employees work more than 40 hrs a week they are not paid for their additional work. Companies can claim that they are providing 2 days holidays in a week..largely its a defacto / known secret that IT employees work more than 8 hours a day.

NEXT STEPS / Solutions / Ideas :

Govt should introduce mandatory law that directs certain percentage of the profits to give back to society if they are getting Assistance from Govt.

Why not all the companies pool certain amount of their profits to form a huge organization which have training centers across the country that provides industry ready experience with nominal training fees. So that the fresher’s wont put fake experience to get jobs in the companies which demands the experience from the candidates?

Huge differentiations in the pay packages among the companies. Now it’s the time to introduce skills based, experience based, technology based, education based, domain based packages across the companies to remove the disparity between the employees..?

When the Govt can maintain the pay scales across the country, departs, states, taxes etc.. why not employees and company look at it ?

Some thoughts on lay off’s: In India Job is associated with Social status and hence it is more important aspect in ones life. As a part of the Indian culture we emphasize more on Jobs than entrepreneurship. Job associated to marriages, social status, style of living etc.. So Lay off’s should only be done if the company is in loss, also loss in at least 2 consecutive years. If there is dip in profits Govt should not allow the lay off’s. Additionally if the company has to lay off then a labour commissioner or his level of officers should be involved and should verify all the facts like performance, opportunities given to employees to improve and given enough communication to the individual etc and then only allow companies lay off their employees with Severance package.

Govt Should only allow MERGERS / TAKE OVER / ACQUISATIONS with guarantees from the companies that they will not lay off employees. In the history in all the M&A the first and final impacted person is Employees only. Why should Govt allow comapnies when they removing employees rather than recruting ? Why to add / provide more security to Investors than the employees..?

Can IT & ITES companies can think of business without employees first ?

Many more to add..


Many more thoughts be added

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