Retrenchment in IT sector: Issue raised in state assembly

IT sector has been rocked by news of mass layoffs, automation and dwindling business due to US ‘protectionism’ are often cited as reasons for the layoffs. Industry sources had pointed out that 10-15 per cent of the workforce may be given the pink slip.

Written by Partha Sarthi Biswas | Pune | Published:July 26, 2017 8:42 am
IT layoffs, retrenchment, IT sector, fall, IT boom Young IT profesionals at hinjewadi IT park. (Express Photo by Rajesh Stephan)

Retrenchment in Pune’s IT sector found its echo in the ongoing session of the state assembly, with legislators across the party line raising questions.  Several legislators, including Pune MLC Sharad Ranpise, raised the matter in the Upper House of the state legislature, seeking details of the retrenchments in the sector. After Bengaluru, Pune has the highest concentration of IT companies, with 920 such companies registered with the labour commissioner’s office.

For the last few months, however, the sector has been rocked by news of mass layoffs. Automation and dwindling business due to US ‘protectionism’ are often cited as reasons for the layoffs. Industry sources had pointed out that 10-15 per cent of the over three lakh workforce may be given the pink slip. Faced with an uncertain future, IT sector employees came under the banner of Forum IT Employees (FITE) to challenge the layoffs. FITE had alleged that many of the employees were pressured to resign.
Claiming that they have received several complaints from people who had faced illegal retrenchment, Elavarasan Raja, Maharashtra coordinator of FITE, claimed to have helped these employees in filing a legal complaint with the office of the labour commissioner.

So far, 13 such cases have been filed, which are now being heard.  FITE has also reached out to other labour unions, along with prominent labour lawyers, to garner support for the movement. The body had also conducted a meeting with lawyers near the IT hub, Hinjewadi.  Meanwhile, many of the companies against whom complaints were filed had questioned the legal standing of FITE.  Elavarasan said the body was in the process of registering itself as an union. “Work on the constitution of an union is underway and we hope to be registered soon,” he said. FITE has also reached out to political leaders. A few of its members had also met minister Sambhaji Patil Nilangekar and Shrikant Bharati, officer on special duty to the chief minister.