Indian IT giant Wipro has sent shockwaves throughout the industry by telling its employees to accept lower salaries. The move has drawn criticism from industry experts and sparked outrage among workers, some of whom have already filed complaints with the labor ministry.
Wipro, according to reports, has asked some of its entry-level employees to accept pay cuts of up to 50% and has frozen salaries for others. The company has defended the move by saying that it is necessary to ensure long-term sustainability and competitiveness.
The announcement has come as a shock to many, particularly given the recent boom in the Indian IT sector. Wipro, which is one of the country’s largest IT services firms, has been performing well in recent years and is expected to continue growing in the coming years.
The move has also drawn criticism from industry experts, who have warned that it could have serious consequences for Wipro’s reputation and could harm its ability to attract and retain top talent. Some experts have also expressed concern that the move could lead to a wider trend of cost-cutting and salary reductions across the industry.
In response to the news, the IT employee union NITES has filed a complaint against Wipro with the labor ministry, arguing that the company has violated labor laws and breached the terms of its employment contracts. The union has called for the company to reverse the pay cuts and to negotiate with workers in good faith.
The controversy comes at a time when the Indian IT industry is already facing significant challenges, including rising competition from other countries and growing concerns over data privacy and security. It remains to be seen how Wipro’s decision will affect the broader industry and whether other companies will follow suit.
Despite the controversy, Wipro has defended its decision, saying that it is committed to ensuring the long-term success of the company and that it will continue to invest in its workforce and innovation. The company has also said that it is working to address the concerns of its employees and find a resolution to the issue.