HYDERABAD: Unionisation is the new word that the Indian tech industry is hearing, following mass lay-offs announced by IT majors across the country. Hyderabad is home to 1,183 IT companies of all sizes, and they are not too happy with the unionisation of employees. “Unionisation sounds good in government departments, but it does not work in IT companies or for that matter in the private sector,” said Mr S. Pulla Reddy, MD of SP Software, Madhapur.
He said that IT industry was dependent on the international market. If a company does not get enough projects, it has no option but to scale down and retrenchment is the only option, he said, adding that pink slips were not being issued without a reason. A company performs only when people perform and when people do not perform the company has to close down, Mr Pulla Reddy said. “Unlike in government offices, private firms do not have the luxury of paying salaries even if one works or not.”
Unionisation and intervention of labour departments will have serious consequences and reputed companies might actually explore the option of moving to another city or shutting down operations completely in a place, Mr Pulla Reddy said. TiE Hyderabad president Safer Adeni felt that software industry was facing a global challenge on account of the geopolitical situation, especially in the US, increased automation and macroeconomics.
At this juncture putting new hurdles in the path of IT companies and subjecting them to new pressures was unwarranted and would boomerang, Mr Adeni said. He said IT companies are the most employee-friendly, giving high salaries, bonuses, perks, a chance to work abroad besides a great ambience and facilities at work. Mr Ranga Pothula, president of Hyderabad Software Enterprises Association, said forming unions would not serve any purpose.
“Due to the changing business dynamics, companies are laying off techies who do not upskill themselves with latest technologies that evolve every few months. These lay-offs of one to two per cent is nothing considering that fresh hiring of 10 to 15 per cent is being done every year,” he said.
