Et news2


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Et news2

  1. 1. ET News related to HR Neha Sahi MBA 2C
  2. 2. Laying off two-thirds of staff tops MTNL’s recovery wish list <ul><li>MTNL wants to lay off two-third of its employees as it attempts to arrest massive decline in revenues and profits. </li></ul><ul><li>MTNL offers services in Delhi and Mumbai, and has 45000 employees on its rolls compared to Bharti Airtel, whose sale is 10 times of MTNL has 18000 employees. </li></ul><ul><li>MTNL wants to reduce its employee numbers by 30000 i.e. it requires only 15000 employees to run its business. </li></ul>
  3. 3. Contd.. <ul><li>MTNL spends over 30% of its revenues on employee wages. </li></ul><ul><li>MTNL decaled loss of Rs. 2514 crore for the year ended March 2010, due to one-time expense of providing retirement benefits. </li></ul><ul><li>Blame of losses are on: </li></ul><ul><ul><li>Rising staff cost. </li></ul></ul><ul><ul><li>Having to set aside provision for retirement benefits. </li></ul></ul><ul><li>Teleco will have to overcome opposition from its strong employee unions. </li></ul>
  4. 4. Government begins search for the next Sebi chief <ul><li>5 member committee headed by Cabinet secretary, KM Chandrasekhar has been mandated to choose next Sebi chief. </li></ul><ul><li>Sebi chairman CB Bhave’s 3 year term comes to an end in the third week of February. </li></ul><ul><li>The final call will be taken by the Appointments Committee of the Cabinet: </li></ul><ul><li>Finance Minister </li></ul><ul><li>Home Minister </li></ul><ul><li>Prime Minister </li></ul>
  5. 5. Contd.. <ul><li>Other members of selection committee are: </li></ul><ul><li>Ashok Chawla (Finance Secretary) </li></ul><ul><li>R Gopalan (Financial Services Secretary) </li></ul><ul><li>Shekhar Chaudhuri (IIM Calcutta Director) </li></ul><ul><li>Suman Bery (Director NCAER). </li></ul><ul><li>Selection panel is expected to advertise for the position. </li></ul>
  6. 6. CEO’s salary: Let investors decide, says House panel <ul><li>Parliamentary panel suggested that salaries of CEO’s of the companies should be capped and shareholders should have a say in managerial remunerations. </li></ul><ul><li>Revised Companies Bill seek to replace the half-a-century old Act in winter session or Budget session. </li></ul><ul><li>Companies Bill 2009 presented a report for prescribing an overall ceiling on managerial remuneration. </li></ul>
  7. 7. Contd.. <ul><li>According to section 198 0f the Companies Act,1956: </li></ul><ul><li>Total remuneration paid to managerial personnel cannot be more than 11% of net profit. </li></ul><ul><li>Individual’s manager compensation is capped at 5% of net profit. </li></ul><ul><li>Any company breaking the ceiling requires approval from corporate affairs ministry. </li></ul><ul><li>If a company does not have adequate profits, it requires the Central government’s approval to dole out salaries. </li></ul><ul><li>Panel suggested that in the event of established fraud or fudging of profits by the company, remuneration paid to the key managerial personnel may be recovered. </li></ul>
  8. 8. Basu pitches for changes in labour laws, calls for debate <ul><li>According to Kaushik Basu (economic advisor of finance ministry) Industrial labour disputes Act needs to be recast to help increase employment. </li></ul><ul><li>This analogy is drawn from the flexible labour laws in Bangladesh and the benefits it had brought to the country’s textiles sector. </li></ul><ul><li>Labour ministry has formed different task forces for the consideration of issue of separate labour laws for unorganized sector. </li></ul>
  9. 9. Contd.. <ul><li>Basu was critical of the rule that requires industries employing more than 100 workers to seek government’s nod before downsizing. </li></ul><ul><li>This rule has encouraged companies to employ capital intensive method of production to keep labour requirement low. </li></ul><ul><li>This encourage contract labour where terms of employment are loaded heavily against the workers. </li></ul>
  10. 10. Thank You