Bajaj Auto to slash salaries if factories remain shut till May 3

India's third-biggest two-wheeler manufacturer Bajaj Auto has proposed a plan to go for 10 per cent pay reduction for factory employees till May 3, 2020, the deadline for lifting of the nationwide lockdown. The pay cut will happen if the production doesn't resume on April 21, which means no cut if production resumes from April 21, 2020.

A source-based report published on digital platforms of leading media houses suggests that there will be no pay cut if production resumes from April 21, but if no production happens then the employees have been informed to expect a pay cut of 10 per cent. The two-wheeler manufacturer has said that there is an urgent to reduce fixed costs due to the current economic scenario and the pay reduction in monthly fixed gross will happen at all levels until the lockdown is not lifted. Taking a lead, the company's Managing Director Rajiv Bajaj has decided to not take any pay during the period.

The good news is that Bajaj Auto is not looking at laying off employees for the moment.

It has been reported that the worker's union has also supported the company's decision to reduce the salaries for the period.

The company has said it will continue reviewing the situation on a day-to-day basis.

Guidelines issued by the Ministry of Home Affairs (MHA) on April 15, 2020, says, the government is allowing industries to start operation in rural areas. Besides, manufacturing and other industrial establishments with access control in special economic zones (SEZ) and export-oriented units, industrial estates and industrial townships can restart production from April 20, 2020.