The unprecedented lockdown in the country with curfew being imposed from March 17 and which continues unabated to-date erodes the Softlogic Group’s performance with most companies being closed for business.
“Nonetheless, Staff wellbeing and good health is of primary importance and overrides any other secondary measures we are implementing to ensure continuance of strong operations in the economy globally battered by the corona virus”, said its Chairman, Ashok Pathirage.
These unprecedented times are not endemic to Softlogic alone but to all other corporate entities, small and large operating in the economy. “While other companies have been faster to take measures to cut staff emoluments, after careful consideration and giving much thought to all grades of staff, we have decided to implement cost saving measures to ensure that job losses are minimised while taking the opportunity to look inwardly and reduce wasteful expenses, centralise functions to avoid duplication of work, eliminate unviable business practices and adopt the right strategy - so that management may accordingly stay on top of the learning curve - and face challenges of today’s harsh economic realities”.
“Government, the Central Bank and Health Authorities are exploring ways to solve such intractable economic and health issues, but as a Group that is responsible for lives and wellbeing of over 10,000 staff and their families we expect staff at this critical time to understand the business rationale for undertaking cutbacks affecting staff emoluments, incentives and allowances in order to save expenditure during a time sustainable revenue growth is undermined for reasons beyond ordinary control.
The following measures will be implemented in conjunction with the withholding of bonuses and pay increases for 2020 for a period of three month and shall be reviewed thereafter until the economy satisfactorily recovers.
Salary reduction for various slabs as a percentage has been introduced considering the salary range and thus is applicable to all staff across the entire group as set out below.
However there would be no pay cuts for employees earning less than Rs. 50, 000.
This measure is an initiative that you will no doubt concur with as we steer the Group during turbulent times to avert the potential high incident of retrenchment that may otherwise become unavoidable during the coming months.
Another measure is to freeze on all new recruitments including head count replacements.
There will be no overtime payments. “However, when called upon to do so an employee would need to volunteer and work the extra hours should the job requires such commitment”
It is also decided to freeze all expenses pertaining to training and development and employee welfare unless otherwise deemed as a critical expense and also all new plans and capital expenditure is to be held in abeyance
“During this period, we appeal to staff to give their best, double up on their performance objectives and commit themselves with utmost diligence and good faith and thus cooperate with management to implementing these positive decisions until Group performance goals are successfully reached.”
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