The employees of Peerless General Finance & Investment Co Ltd, India's largest residuary non-banking finance company, have sought the turnaround plan of the company, which apparently talks about Peerless' plan to downsize its workforce by more than 50 per cent.
The report has already been submitted to the Reserve Bank of India (RBI) and the employees are now in a quandary as managing director S K Roy has not briefed them about the company's turnaround plan. In reply to their query, Roy has said, "Our turnaround plan is under discussion at various levels and on completion of the exercises we intend to discuss with you before we act upon".
The major cause of concern of the employees has been the media reports that talk about the company's plan to cut down its workforce by more than 50 per cent. The market is abuzz with the possibility of Peerless cutting down its existing 4600 employees to about 2200.
In a letter to Roy, the Citu-affiliated All India Peerless Employees' Union has raised a hue and cry as the Peerless management has not consulted the employees while preparing the report.
"We strongly feel that the experience and knowledge of the employees should have been honoured properly while preparing the turnaround plan", the letter mentioned.
But the fear of downsizing seems to be gradually building up among the employees, who have not got any feedback from the management that will dispel the apprehension.
Peerless is also redesigning the commission structure within the permissible limit and is taking all possible measures to reduce its administrative expenses. The company is strictly going by the advice of the regulatory authority which stipulates that the cost of fund should remain within its income and at no point of time the fund should be eroded.
