Respected Seniors
I need your suggestions. I am working as a HR Executive in a Company. Now due to Global slowdown, my company’s business is very difficult now, Sales orders are uncertain hence we are forced to do cost cutting now I would like to know that we want to work for 5 days a week and want to close for Saturday & Sunday. We are working 8:30 to 5:00 PM in first shift and 5:00 PM to 1:30 PM in Second shift and ˝ hour recess time. So can anyone suggest us the system to work 5 days a week instead of 6 days a week to cover one days working time or any other system. And contract workers also working with us what about them?
Please suggest other way of cost cutting in company.
Regards
Nageshwar

From India, Ahmadabad
Is your firm into Manufacturing or services ? What is the policy in your firm towards the time-off from work? How is it considered and calculated? Often an extra day off , as a weekend amounts to a benefit.
You are trying to adjust on One Man-day. Currently you have 8.5 working hours including breaks. At the most you can calculate, an addition of 45 mins at work. However that builds only to 4 hrs and 15 mins every week. You may consider a half-day on Saturday, to adjust the rest .
However, look for policies on writing off the extra working hours everyday, unless its essential for production. During recession, you need to keep your employees morale high. You will need time to issue the bonus, hence some time off from work will offer them a benefit.
You can always roll back when you need them to work during those hours. The choice remain yours.

From India, Mumbai
I do not understand your problem
You are current working 6 days a week
And working 2 shift
Do you want to work 5 days a week and 2 shift with the same number of hours worked as before ?
Or do you want to work 5 days a week and reduce salary ?
If you are working the same hours and 2 shift, how does it amount to cost cutting ?
The salary cost will remain the same, as the work is same
As for contract workers, you can more easily deal with them. You just have to tell the contractor how many people you want to reduce and he will have to retrench or redeploy em elsewhere.

From India, Mumbai
Hello (Cite Contribution)/Saswata
Our Company is manufacturer. Our company wants to reduce other expenses, we will not deduct the salaries of employees. we just want to save one days cost. We want to work 5 days a week in both the shift. because if we will work in I shift only then the manpower of II shift will not be able to work due to unavailability of other machines.
We have already reduced the contract worker to particular no. of persons. As our sales orders are uncertain, we have to maintain minimum nos. of workers to meet our production if we received any other sales orders.
Regards
Nageshwar

From India, Ahmadabad
Ok, in that case,
Your workers can work for up to 9 hours a day and 48 hours a week
This excludes break times (reasonable lunch and tea breaks)
So in effect yu can have 9.5 hours a day (9:30)
You will be able to make up the lost time this way for 5 of the 8 hours u want.
However, ending the second shift at 2:30 am is a problem, so I suggest you consider starting at 6 Or 7 am instead as most factories do. I am glad to see that your management is doing all it can to avoid reducing workers wages. Hope the workers will cooperate on work hours

From India, Mumbai
Reducing the number of shifts & review of shift timings may help in managing employee costs. At least the over time payments, if any, must cease when the production targets are low because of inadequate business. This probably is the time when you could review your leave policy & permit people to avail (rather than encash) their accumulated earned leave.
From India, Delhi
My dear friend,

When you reduce the working hours, productivity will come down. Again when you reduce the working hours to match the poor market condition, you cannot give full wages to the workmen. Rightly you have reduced the contract workmen as the first step. Who will do those jobs done until now by them. Your permanent workers? If you have Unions, call the leaders and discuss the issue first. Please be frank across the table and make workers' representatives understand the ongoing problem.

You have to implement austerity measures by cutting extra benefits such as overtime, travel allowance, LTA, Leave encashment and other frills. I don't know the size of your organization and style of functioning.

Instead of asking us for ideas, please ask your own people in the interest and welfare of the organization. Introducing and implementing austerity measure without ensuring the co-operation of your union leaders, employees and contractors will end up further complications.

When some of the major units were kept under suspended animation in my erstwhile company due to pollution control problems, we called all the unions and took their suggestions. We declared partial lay off (even to staff employees) stopped all fringe benefits temporarily until the plants resumed at full swing.

Almost all the organizations experience such ups and downs and with your right remedial actions you will tackle this temporary problem with ease and comfort.

Best of Luck,

Ganesh Ramachandran

From India, Tiruppur
Dear Nageshwar,
The methods of cost cutting that you have proosed are superficial. I recommend you concentrating on your purchase and production department. Lot of revenue leakage happens because:
a) Lack of coordination between purchase and production departments or purchase and sales department.
b) Poor relations with vendors
c) Poor inventory management. What is the percentage of obsolete inventory?
d) Lack of training to sales staff. Have your sales person made indigenous method to handle sales call?
I recommend you fixing these problems first. Reducing manpower comes later. If you wish you may contact me on my mobile at +91-990155394.
Dinesh V Divekar

From India, Bangalore
Hello Seniors
Now again we don't have much work and the market position is going down and down.
Hence, this time we want to go for Five days working instead of six days working and the One day's salary of week will be deducted.
kindly advice at the earliest possible.
Regards
Nageshwar

From India, Ahmadabad
Will that result in your salary going below minimum wages ?
From India, Mumbai

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