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'Unethical': IT employees union urges Wipro to reconsider its decision to cut pay

Though it offered Rs 6.5 lakh PA to new recruits, Wipro later slashed it by half

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On Tuesday, tech giant Wipro announced that it was slashing the salary of freshers awaiting onboarding by almost 50 percent. Though the company initially promised Rs 6.5 lakh per year to new recruits, it backtracked and reduced the offer to Rs 3.5 lakh, a 50 percent salary cut.

Wipro reportedly hired a number of tech graduates for its Turbo programme with an offer of ₹6.5 lakh per annum. However, it wrote to these freshers, informing them that they would instead be placed in the Elite programme which offers ₹3.5 lakh.

These recruits had already undergone and cleared an online training programme called Velocity in the last three months of their college, wherein they learn Java, AWS and full stack.

However, the e-mail from Wipro read: "Currently we have certain project engineer roles available for recruitment with annual compensation of Rs 3.5 lakh. We would like to offer all our Velocity graduates in FY23 batch an opportunity to opt for these roles."

The move has already met with protest as IT sector employees union Nascent Information Technology Employees Senate (NITES) terming it "unjust" and "unacceptable". NITES has also demanded that the IT company reconsider its decision.

But, Wipro has cited multiple reasons for their decision. While market watchers say the company's reflects the global macro economic uncertainties, the Bengaluru-headquartered IT services major has blamed "changing macro environment." 

The company said it had to assess "global economies and customer needs" for its hiring plans, like others in the industry.  Wipro said it had to adjust its onboarding plans in the light of the "changing macro environment and its business needs."

"As we work to honor all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills - both through the interesting and innovative work that we do, as well as our extensive learning and development programmes," Wipro said.

The company also said it was committed to the growth and success of all its employees and looked forward to welcoming this new group of recent graduates.

However, Wipro's reasoning has not gone well with NITES which said it goes against the principles of fairness and transparency". 

Seeking the company to engage in meaningful dialogue with the union to find a mutually beneficial solution, NITES said it strongly condemns Wipro's "unethical" move to reduce the salaries of employees.

"The decision to cut the salaries of the employees without prior consultation and negotiation is not only unjust but also goes against the principles of fairness and transparency. It is unacceptable that the burden of the company's financial troubles is being placed solely on the shoulders of the employees," Harpreet Singh Saluja, President of NITES, said.

"We will not stand by while the rights and dignity of our members are being violated," Saluja said.

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