Apache motorcycles maker, TVS Motor Company Ltd, will be cutting employees salary for the next six months, starting May. However, the company clarified there will be no deduction at the workmen level.
“In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months," a company spokesperson told Livemint.
The company informed that the cut will be to the extent of 5 per cent for junior executives and 15-20 per cent at the senior management level.
The company stated it was heartening to see employees coming forward and offering to take salary reduction voluntarily.
The company is finding it difficult to maintain liquidity and cash flow in the system. The automakers saw sales plunge by 51 per cent in passenger cars segment, 88 per cent in commercial vehicles, 58 per cent in three-wheelers and 40 per cent in two-wheeler categories due to the nationwide lockdown since March to contain the coronavirus outbreak.
On May 6, TVS Motor restarted its production units in Hosur, Mysuru and Nalagarh after more than 40 days.
