Don't lay off employees: CII tells member cos
New Delhi: Industry body CII has asked its member companies not to lay off their employees, its president Vikram Kirloskar said on Thursday amid the coronavirus outbreak causing economic slowdown globally.
His remarks come against the backdrop of mounting concerns that companies, including in India, could resort to retrenchment due to sluggish demand and various restrictions in place to curb spreading of the coronavirus infection.
Observing that "times are challenging", Kirloskar said the industry has sought a moratorium on all loan repayments and urged the Reserve Bank to cut interest rates and increase liquidity in the system.
"We are requesting our members to hold on to their staff and not do layoffs as far as possible and take care of small service providers as far as possible," Kirloskar told PTI in an interview.
The Confederation of Indian Industry (CII) had 9,325 companies as members at the end of 2019.
Among other sectors, the airline industry is one of the worst hit by the outbreak. GoAir has asked many employees to go on leave without pay on a rotational basis and has also terminated services of expat pilots.
Country's largest carrier IndiGo has announced pay cuts and debt-laden Air India too is considering a similar step.
"If I compare with the rest of the world, I think our government has done a wonderful job," he said, and suggested that the government should do more to support the economy as India's supply chains have been hit, impacting exports.
The coronavirus has impacted whole world, and S&P Global Ratings on Wednesday said the global economy has entered into a recession, while lowering the growth forecast for major countries,