IT company Wipro's latest decision to cut salary offers to freshers looking to join the company by almost 50 per cent under a programme has been criticized by the employees’ union Nascent Information Technology Employees Senate (NITES) which called the move 'unjust' and 'unacceptable'. The IT sector employee union demanded that the firm should reconsider its decision, according to the news agency PTI report.
Market observers say the IT firm’s decision reflects the global macro-economic uncertainties and the challenges in the demand environment for tech companies.
The Bengaluru-headquartered company recently communicated to candidates to whom it had earlier given a package of Rs6.5 lakh per annum (LPA) and asked if the current Rs3.5 offer in annual compensation would be acceptable to them. These candidates were reportedly waiting to be onboarded, the report added.
The union has criticised the move saying the decision is "unjust" and "goes against the principles of fairness and transparency". On its part, NITES asked the management should reconsider its decision and engage in meaningful dialogue with the union to find a mutually beneficial solution.
The union termed the move to reduce the salaries of employees awaiting joining as "unethical". "The decision to cut the salaries of the employees without prior consultation and negotiation is not only unjust but also goes against the principles of fairness and transparency. It is unacceptable that the burden of the company's financial troubles is being placed solely on the shoulders of the employees," Harpreet Singh Saluja, President of NITES, said. "We will not stand by while the rights and dignity of our members are being violated," Saluja added.
In a recent message to candidates who have successfully completed Velocity training programme, the company said: "Like others in our industry we continue to assess global economies and customer needs which factor into our hiring plans. We appreciate your commitment and patience as we try to identify joining opportunities for you."
The company added, "currently we have certain project engineer roles available for recruitment with annual compensation of Rs3.5 lakh. We would like to offer all our Velocity graduates in FY23 batch an opportunity to opt for these roles."
Responding to the issue, Wipro responded in a mail saying: "In light of the changing macro environment and, as a result, our business needs, we had to adjust our onboarding plans."
"As we work to honor all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills - both through the interesting and innovative work that we do, as well as our extensive learning and development programmes," Wipro said.
The company noted that it is committed to the growth and success of all its employees and looks forward to welcoming this new group of recent graduates.