Blog Post

It's Official: Bennett, Coleman Cuts Salaries, No Increments This Year

We reported last week that Bennett, Coleman & Co. Ltd, India’s richest media company that publishes The Times of India, was mulling significant, across-the-board salary cuts. This afternoon, CEO Ravi Dhariwal sent a mail to all employees outlining the difficulties in the economic environment and BCCL’s businesses as well as effecting salary cuts. “Frankly, I have not seen anything like this in my working life,” he wrote.

Measures relating to salaries are as follows. From the email, the full text of which, is below the fold:

a) There will be no salary revision in August this year
b) There will be no TVP* pay out in August this year
c) There will be a roll back of increment for all employees starting March 1, 09. This will be graded, i.e. employees who got a smaller increase will get a lower reduction and the employees who got a higher increase will have a higher reduction of their increment.

*TVP, or target variable pay, is sort of a performance-linked bonus that is part of your total compensation. While it varies from employee to employee at BCCL, we understand that it is typically 12-15% of the total package.

Here are some key excerpts from Dhariwal’s mail:

Actually October was our best month in the history of BCCL in terms of revenue, though our profits were at half the level of what we had originally expected. All because of the higher newsprint costs. At that stage, we thought we will be able to cut more costs and restore the company to its original financial health. Profit is like oxygen

3 Responses to “It's Official: Bennett, Coleman Cuts Salaries, No Increments This Year”

  1. PARAG DESAI

    THE PROPOSAL SPEAKS VERY POORLY OF THE COMPANY'S INTENTIONS AS WELL AS THE FINANCIAL STRENGTH WHICH THE PEOPLE PERCEIVED TILL DATE.WHAT POINT IS THE MANAGEMENT TRYING TO DRIVE HOME? IF EMPLOYEES START JUMPING THE FENCE AND BEGIN TO DESERT THE ORGANISATION THINKING THAT BETTER FUTURE AWAITS THEM ELSEWHERE,HOW WOULD SUCH A MOVE BE BENEFICAL TO THE ORGANISATION IS ANYBODYS GUESS. A RESPECTABLE MEDIA BODY IF IT IS SEEN OR PERCEIVED BY THE MASSES AS A "BLOCK OF SINKING SHIP"
    WHAT CAN BE WORST ? THIS MIGHT BE A "PENNY WISE POUND FOOLISH" ATTITUDE WHICH THE MANAGEMENT MIGHT EXHIBIT. HOW CAN A CO. LIKE " BENETT & COLMAN" TAKE SUCH A PREPOSTOROUS STEP?

    BEFORE IT IS TOO LATE..THE PLAN MUST BE BLOWN OVER BEFORE A HURRICANE BLOWS THE COMPANY'S ROOFTOP..

    WHAT WORST THAN A DEMORALISED & DISGRUNTLED LOT OF STAFF WITH "TIMES" WHICH CAN'T TAKE CARE OF THE STAFF'S BASIC NEEDS & RESORTS TO PAY CUTS..ETC.?

  2. I wonder how their employees reacted on this announcement. Come to think of it, no salary increase, and no bonuses but there’s a proportionate salary reduction. Our situation is getting worst day by day.