Saturday, December 20, 2008

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Oracle India rules out salary cuts



Source: IT Examiner
Allen Mathew, senior director in human resources, Oracle India has ruled out salary cuts in the company.

Mathew said, “We don’t go outside to recruit and we don’t go to consultants for recruitment. We run our own recruitment agency. So we have a very different model. We don’t have requirement at this point of time. We only find people in specific domains to hire, but it is difficult.” He added, “There are no salary cuts or job cuts as of now. Coming to our pay cycle, we have got last year’s bonus. December will be the latest period. And we are still hiring. So far, we don’t have any such move in our company”.

However, he is unsure about the future. He said, “We don’t know what will happen in three years or five years or one year down the line. In the near future I don’t see anything like that.” On an optimistic note, he spoke about the situation in 2004 when Oracle started mergers and acquisitions (M&A) of other companies.  At that time everyone said that M&A won’t work for Oracle as there will be a great number of job cuts and layoffs.

Mathew said that difference of culture could be of great significance in M&A. He said that Oracle had acquired multicompanies and was quite successful. He also gave an example of cultural adaptation. At one company they had acquired, the cafeteria had no non-vegetarian food on the menu. Now all cafeterias in Oracle offer non-vegetarian food. Mathew used this example to show that Oracle could adapt to other companies’ policies and merging was not only in business but also in culture.

However, employees of I-flex solutions limited, now Oracle Financial Services Software Limited, have a different story to tell. They said that the vendors in the company were in the process of being sent out. The senior employees in the C and D bands got 10 to 15 per cent salary cut. The company has also cancelled bonus for the year. The company’s staff in the prime sourcing division was given a pay cut of about 50 per cent and was required to work only for three hours a day. The old I-flex management supposedly wanted to layoff the entire staff in the division. However, the Oracle management decided against it as Oracle feared that it would give an impression that the M&A was a failure.

Employees also said that the company had cancelled perks such as transport charges. Earlier, 50 per cent of the employees' transport charges were borne by the company. The company has also cancelled free snacks for the staff in the evening. Free food for its support staff also has been cancelled. The recruitment procedure is said to have become more rigid following M&A. The employees’ version gives a completely different picture to that given by Mathew.

3 comments:

  1. total bullshit
    freshers already got pain of 25% salary cut from 2.4LPA to 1.8 LPA

    those on bench getting half salary and have to work half day only

    Appraisals are on hold

    selling primesourcing to Wipro is next step in this chain

    ReplyDelete
  2. they have converted the employement of people on bench to part timers.

    till last month they were recruiting like crazy....

    these benchers would be laid off quietly in next 3 months

    ReplyDelete
  3. i-flex has deviced a new technique to layoff employes one amoung several are IKM test the funda is get 80 pertentile in the test or take the high way.No salary increments since last 2 years. In this way they already laid off 800-1000 employess from different locations. And for the rest they are creating a environment such that the employee himself will leave(salary cut, no allowances, no tranportation services, no air conditioning or fan at the office, no bonus, long working hours[10-12 hrs a day at current], a people will be amaised to know that employees at bangalore location have been laid off just for stupid reasons of not completing 10 hours a day ).
    People will find a lot of things baseless and joke. But unfortunately all this are true.

    ReplyDelete

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