Infosys ex-CFO V. Balakrishnan says employee unions are not needed in the IT industry as the staff is well paid. The workers can even find opportunities outside the company they work for. The senior industry figure calls the work ethic in the IT Industry “Good”.
Ex-Infosys CFO – Say No To Employee Unions
Balakrishnan told a news agency,
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“Even if there is a union, I don’t think it will impact the industry because people are well taken care of in this industry.”
“Forum for IT Employees”
Balakrishnan remarks come days after a group of software professionals from Tamil Nadu said they were setting up an employees’ union called “Forum for IT Employees”. They had started the union post massive layoffs were noted in various companies in the IT sector.
Employee Unions Is Not For IT Industry
Former Infosys CFO, Balakrishnan said the IT sector is not a “traditional” industry. He called this industry full of work opportunities from across the globe. According to him the need for employees’ unions is more in those industries where the work ethic is negative and employees are not treated properly. Practically this doesn’t hold true with the IT industry.
Balakrishnan pointed that the attrition rate in the IT industry was in double-digits. He also said the idea of creating an employees’ union has always failed in the past.
Balakrishnan said the reports about laying off people in the IT sector were “exaggerated”. He said in a statement,
“If you look at all leading companies, none of them are talking about huge losses,” he added “They are all talking about the regular performance-based attrition, that is normal in the industry.”
Increasing protection in the United States and rising automation of work have led to IT giants handing out pink slips to employees. One of the biggest employers in the sector, Infosys, had delayed hikes in its staffers’ remuneration amidst gossips that it was planning to fire hundreds of employees.
Infosys, Chief Operating Officer, Pravin Rao said, the compensation review for mid-level employees has been postponed until July and beyond to reduce costs and ensure payments.
Date: 31 May, 2017