Amid the coronavirus outbreak that has had serious implications on businesses across verticals, Bengaluru-based infrastructure major GMR Group has announced to make salary cuts of its employees across all levels. A source close to the matter has informed that the group has revised downwards employees’ salary by up to 50% with effect from May.
“As part of the revised structure, the group has done away with the variable component in employees’ CTC (cost to company) and replaced it with special performance allowance, which will be treated as a special variable component,” the source told PTI.
This restructuring of the variable component would result in a salary reduction of up to 50% for various categories of employees, including senior and top management. However, the source has informed that the reduction in compensation is poised to be the maximum at the highest level.
A GMR Group spokesperson, while responding to an e-mail query by PTI, confirmed the development saying the employees’ compensation has been restructured.
“In view of the challenges faced by the infrastructure sector/industry due to COVID-19, GMR has taken steps to restructure the compensation of employees. A special variable component linked to business performance has been introduced to align with current market conditions.”~GMR Group spokesperson
A recent industry report has forecast that airports worldwide are expected to see a decline of more than 4.6 billion passengers and revenue totalling USD 97 billion (around Rs 7.3 lakh crore) in 2020 amid the coronavirus pandemic.
Airports Council International has estimated a reduction of over two billion passengers at the global level in Q2 of 2020 and more than 4.6 billion passengers for all of 2020.