NEW DELHI(2 Dec 2008):Executives at property firms are faced with the prospect of job losses and salary cuts to the extent of 50% as sales refuse to pick up
and credit remains tight, thus deepening the downturn that had set in early this year. Omaxe chairman Rohtas Goel said he had taken a salary cut of 50%.
A Unitech spokesman confirmed that the company had scaled down 10% of its 1,700-strong employee base, and most of those who lost jobs were trainees.
Delhi-based Ansal Properties and Infrastructure has similarly sacked 70-80 employees of its total 1,000 staff, the company’s HR head Vivek Gandhi said. Those who were asked to go were either part of the projects which didn’t take off or became redundant.
Omaxe chairman Rohtas Goel admitted that his company had slashed workforce by 5% (70 people) and reduced salary for its staff by an average 10%. “Salary of all employees except those who earn Rs 10,000 or less a month has been reduced,” Mr Goel said. One senior Omaxe executive said that for some employees, salary cut has been to the tune of 50% and the total number of employees asked to leave could be more than 150. But Mr Goel denied this, saying the highest salary cut for any employee is not in excess of 25%.
ET had first reported a little over a month ago that real estate firms, including Unitech and Omaxe, were preparing to sack employees after Diwali. But spokespersons of realty firms had then denied it.
Similarly, Parsvnath Developers has cut the salary of its senior executives by 25-30% even as salaries of most senior executives have been delayed by at least three months. Parsvnath chairman Pradeep Jain said salaries have been “restructured” for senior employees, but refused to say what this restructuring meant. He was firm in his denial that salaries are being delayed. But at least two senior Parsvnath executive confirmed that they haven`t received salary even for September.
Mr Jain also denied that his company had sacked staff, but one senior executive said “at least a few people” have been given marching orders, as Parsvnath deals in the task of servicing its huge debt.
Another Delhi-based real estate firm, Emaar MGF, said the company has been trying to bring down manpower cost. “We have not been filling vacancies created by those who left on their own in the past few months. Also, employees’ contracts which came up for renewal in the past few months have not been renewed,” Emaar MGF MD Shravan Gupta said.
DLF chairman KP Singh, too, had earlier admitted that the company had sacked some employees, but later retracted it.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Job_losses_increa
and credit remains tight, thus deepening the downturn that had set in early this year. Omaxe chairman Rohtas Goel said he had taken a salary cut of 50%.
A Unitech spokesman confirmed that the company had scaled down 10% of its 1,700-strong employee base, and most of those who lost jobs were trainees.
Delhi-based Ansal Properties and Infrastructure has similarly sacked 70-80 employees of its total 1,000 staff, the company’s HR head Vivek Gandhi said. Those who were asked to go were either part of the projects which didn’t take off or became redundant.
Omaxe chairman Rohtas Goel admitted that his company had slashed workforce by 5% (70 people) and reduced salary for its staff by an average 10%. “Salary of all employees except those who earn Rs 10,000 or less a month has been reduced,” Mr Goel said. One senior Omaxe executive said that for some employees, salary cut has been to the tune of 50% and the total number of employees asked to leave could be more than 150. But Mr Goel denied this, saying the highest salary cut for any employee is not in excess of 25%.
ET had first reported a little over a month ago that real estate firms, including Unitech and Omaxe, were preparing to sack employees after Diwali. But spokespersons of realty firms had then denied it.
Similarly, Parsvnath Developers has cut the salary of its senior executives by 25-30% even as salaries of most senior executives have been delayed by at least three months. Parsvnath chairman Pradeep Jain said salaries have been “restructured” for senior employees, but refused to say what this restructuring meant. He was firm in his denial that salaries are being delayed. But at least two senior Parsvnath executive confirmed that they haven`t received salary even for September.
Mr Jain also denied that his company had sacked staff, but one senior executive said “at least a few people” have been given marching orders, as Parsvnath deals in the task of servicing its huge debt.
Another Delhi-based real estate firm, Emaar MGF, said the company has been trying to bring down manpower cost. “We have not been filling vacancies created by those who left on their own in the past few months. Also, employees’ contracts which came up for renewal in the past few months have not been renewed,” Emaar MGF MD Shravan Gupta said.
DLF chairman KP Singh, too, had earlier admitted that the company had sacked some employees, but later retracted it.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Job_losses_increa
