Softlogic Group announces across-the-board pay cuts
View(s):The Softlogic Group, which has over 10,000 staff, has announced a pay cut as a result of the COVID-19 crisis for most categories of staff rising up to 30 per cent for those who earn above Rs.1 million.
In a circular to all employees (and released to the media), company chairman Ashok Pathirage said that … “while other companies have been faster to take measures to cut staff emoluments, after careful consideration and giving much thought to all grades of staff, we have decided to implement cost saving measures to ensure that job losses are minimised while taking the opportunity to look inwardly and reduce wasteful expenses, centralise functions to avoid duplication of work, eliminate unviable business practices and adopt the right strategy – so that management may accordingly stay on top of the learning curve – and face challenges of today’s harsh economic realities”.
He said he expected staff at this critical time to understand the business rationale for undertaking cutbacks affecting staff emoluments, incentives and allowances in order to save expenditure during a time sustainable revenue growth is undermined for reasons beyond ordinary control.
While the measures would be implemented in conjunction with the withholding of bonuses and pay increases for 2020 for a period of three months and shall be reviewed thereafter until the economy satisfactorily recovers, there won’t be a pay cut for those earning below Rs.50,000 per month. Above that the pay cuts range from 3 per cent, 15 per cent and to 30 per cent (at the top end).
The circular said there would be a freeze on all new recruitments including head count replacements with all staff to come forward and volunteer to take on an extra function at this point in time; overtime payments will be stopped and employees requested to volunteer and work the extra hours should the job requires such commitment, and all new plans and capital expenditure to be held in abeyance.
Urging employees to perform at their best, Mr. Pathirage ended the note saying … “until then stay strong, healthy, self-isolate, protect your family and be mindful of your duty by your home, company, and country”.