Ignoring all Governments’ directions, Samir Jain & Vineet Jain-controlled Times of India Group has illegally implemented 10 to 20 percent salary cuts and planning for a huge retrenchment of employees in the garb of the Corona Crisis. The controversial Bennett and Coleman Company Limited (BCCL) which is popularly known as the Times of India Group which is running many newspapers, TV channels, and Internet platforms is having more than Rs.1000 crores profit is now coming out with fake stories of huge losses due to COVID-19 and planning for a huge retrenchment of journalists and other staffers.
According to insiders, the Jains have asked the department heads in Times of India & Economic Times newspapers and TV channels like Times Now and Mirror Now to prepare a list of employees to be sacked. This is nothing but a ruse to keep their profits intact by salary cuts and retrenchments, say many staffers. Another trick used by the owners is to transfer employees to distant areas and get automatic resignation from them.
“More than Rs.1000 crores is the entire Group’s minimum profit after all taxes have been paid. Obviously, due to 40 days of lockdown, there is a drop in the advertisement revenues. But they saved a lot in expenses by cutting the number of pages being printed per edition. Now newspapers are having only 12 or 16 pages while in their heydays they printed more than 40 to 50 pages. Losses are there but manageable comparing the annual profits crossing more than Rs.1000 crores after paying all taxes,” say, staffers, indicating that they would complain to the Government or prefer to go to Court.
On Tuesday, the Supreme Court has issued notice to the Government of India, National Broadcasters Association, and Indian Newspaper Society on the petition filed by various Journalist Unions against salary cuts and retrenchments in the garb of Corona crisis[1].
It is learned that many other journalists who are facing retrenchment threats from Times of India and other media organizations are expected to intervene in this case.
Bharatiya Janata Party (BJP) leader Subramanian Swamy has already filed a petition against Times of India owners Jain brothers accusing huge tax evasion and money laundering by floating series of shell companies[2].
References:
[1] “If Business Does Not Start, How Long Will People Sustain Without Jobs?” SC Issues Notice In Plea Against Media Houses Laying Off Employees Amid Lockdown – Apr 27, 2020, LiveLaw.in
[2] Subramanian Swamy urges probe by Income Tax, ED, CBI, SEBI and SFIO into the huge tax violations, money laundering in Times of India Group – Dec 25, 2019, PGurus.com
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What India need is a new set of entrepreneurs. I was impressed the with the interview of Nandakumaar in PGurus. We require these type of people with skills and honesty. Shun all the corrupt corporate houses, they are just the”weight” of the honest Indian tax payers. Still the corporate like TVS group are thriving with honesty. They spend lakhs daily to feed 50000 food packets, two time a day in Chennai. How many of them knew it. I don’t deny that Reliance and other had pledged for PM Care fund. But they have equally manipulated the Finances and parked heavy money out side the country. Still they Demand more during the Covid crisis. Need to overhaul the system.
[…] After salary cuts, Times of India Group plans massive retrenchment in the garb of Corona crisis – Apr 28, 2020, […]
Times Internet has asked rhe employees that they are going to cut salaries without any official communication.
Also they have denied to pay TVF (part of ctc) to the employees , which was supposed to be paid in coming weeks, and it cost about 10% of ctc.
These are illegal actions and malpractice at company’s end.
They are taking benefit of corona pandemic.
Strict actions should be taken in this matter.
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I agree with Venkatesh. I am an employee of the Group myself. even if I am asked to take a pay cut, I will gladly take it if helps sustain at least 1 one junior role. I wont be shocked if i lose my job too. The task force is huge and with such depletion in distribution and ad revenue, its a mammoth task to maintain balance. Just reduction in printing cost does not take away fixed costs of machinery, laborers, salesforce, editorial teams etc . I would urge the author of this article to delve a little deeper and understand how business function before arriving at such solutions
This is applicable to many business ..not just TOI.
How do you think event companies, outdoor solutions, hospitality, air travel , e-travel sites, automobiles etc will survive?
A lot of these businesses have a dependency on ground movement and also on each other. With business at ZERO, how is it possible to continue sustaining?
This is the time Government should pursue with tax raids on the people like Sameer Jain and Vineet Jain. When they decided to retrench apart from 20 percent tax cut, it indicates that they have no intention to run the business.If that is proven, then for a group like Times of India on which many people earn their living, is this not ruthless on the part of these unprofessional managers to retrench apart from Salary Cuts. The problem is not just for them alone, everyone in the world is facing the issue.
A private company needs to survive and, if its business becomes dull, they cannot keep paying salaries to their employees. Can they? All
Does the author of this article want increased socialism in India? In fact, the ruling government is practicing reverse socialism by bailing out private companies like IL & FS, YES Bank and now Franklin Tempelton at tax payers expense. Let the author make case for bailing out media companies as well as most of the media companies are subservient to the ruling party and government anyway.
The author of this article should have come out with a proposal to government to come up with a bill making it mandatory for companies to use some portion of money saved due to reduction of Corporate tax to postpone retrenchment of employees for a few months at least. Armchair specialist advice is just not enough, we need solutions.
This is nothing. There are corporates who have cut salary upto 50% ( employees are being forced to accept that they are accepting voluntary pay cut) and are waiting for the lockdown to end to issue mass pink slips. One of the gems was recently in news thanks to Mr Swamy