Oracle India’s Financial Services (i.e. erstwhile i-Flex), in a drive to cut cost has linked salary with one’s billing hours – resulting in salary cuts of 10-50% across the board.
“If an employee is a billable resource for 15 days a month, he will be paid in full for that period while for the rest of the period, he is paid a “nominal” amount.
The company is also understood to have asked all non-billable employees (those on the bench) to get themselves engaged in internal projects, failing which they can explore opportunities outside the company.” – BS
To add some context, i-Flex’s business is largely dependent on financial sector and is surely facing the heat in the current downturn. Oracle is known to be a good acquisition master (none of their acquisitions have failed so far) – so instead of laying off i-Flex employees (will be looked upon as M&A failure), Oracle has resorted to salary cuts (i.e. force employees to quit).
Do you think a company resorting to such action is acceptable? Is it better to layoff non-billable employees and not cane the billable ones?
What’s your opinion on this saga?
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its only fair if they allow the employee to work for other “freelancing” projects while they are not getting billed . but if that’s not the case than and person is bound not to work for outsiders than it becomes companies responsibility to find some work for the him .
The ” market-is-down-so -take -a-cut ” argument is valid if and ONLY if they were sharing profit (esop etc ) in good times . which is highly unlikely