Hinduja Group's flagship company Ashok Leyland today said it has cut perks across various levels and is renegotiating pricing contracts with vendors due to the ongoing slowdown in the commercial vehicle market.
"While we are paying workmen their full salary/wages even during non-working days, their income would be less than what they earned by way of incentives when market demand was high," a company spokesperson told PTI.
"Junior executive levels also have a similar reduction in income on account of fewer working days. In empathy, the management cadre has taken a voluntary cut of a similar percentage," he said without specifying the amount of pay cuts.
The company, which has been working on a three-day week this month, said it was curtailing production.
"The current inventory levels were in line with our norms, but with the demand shrinking, we are bringing it down by curtailing production," he said.
On contracts with vendors, the spokesperson said, the company had met with the vendors to renegotiate prices.
"It is true that we have sought price renegotiations, reflecting the commodity price softening and the price expectations of a market in recession," he said, however, adding that the company was not linking price renegotiation with payments.
