Following the news that Jet has now decided to take back 800 of its employees who were terminated 2 days back, and also calling it an act on grounds of morality not buckling under pressure. Well, it certainly makes one think how strong the management is.
How will a company (Listed in the stock exchange) survive when there is not business? When the expansion plans are shelved, what is the company going to do with the excess staff? The money that the company uses is the money of its investors, since it’s a listed company. How will the investor get a return on his investment when the management refuses to take a sensible decision (due to political and media pressure) of reducing staff which is a burden to the company.
The reduction of employee strength was carried out in a legitimate way, and is a matter strictly within the scope of management decision making. Why should the company then buckle under pressure and take a decision like this? Doesn't this make the HR a puppet? Terminate employees when management says, just to take them back when political parties put pressure?
Though all 800 employees of the company have been taken back into the company, the loser is not the management but the common man, be it by way of political interference or by way of investment into the company which buckles under pressure. Political party has only ensured a vote bank by putting pressure and getting the decision in their favour.
Your views will help in getting a better picture of this issue.
Regards,
Arun