According to a statement from TVS, the salary cuts will be temporary and will be for a period of six months, from May till October, 2020.
TVS Motor Company is one of the first two-wheeler brands in India to announce salary cuts for employees in the face of the current COVID-19 pandemic and subsequent lockdown. The lockdown has forced a near total halt in manufacturing and production, as well as retail sales of all automotive brands. According to a statement by TVS, the company has decided to adopt a pay cut for all its employees starting from the month of May 2020 till October 2020. This is seen as a result of the significant fall in the company’s sales numbers due to the countrywide lockdown.
Also Read: TVS Registers Zero Sales In April 2020
According to a statement released by TVS Motor Company, “In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months (May to October 2020). There will be no salary deduction at the workmen level. However, there will be 5 per cent salary reduction at the junior executive level and about 15 per cent to 20 per cent at the senior management level. It was heartening to see employees coming forward and offering to take salary reduction voluntarily.”
Also Read: TVS Domestic Sales Decline 55 Per Cent In March 2020
In April 2020, TVS Motor Company registered zero sales in the domestic market, after a decline of 55 per cent sales in March 2020. In the domestic two-wheeler market alone, TVS witnessed a massive 62 per cent decline in sales during March 2020. The company’s manufacturing facility in Hosur, Tamil Nadu was shut down since March 23, 2020 when the lockdown was first announced.