Mahindra Satyam is sending a confident sign to the market by
restoring benefits for staff.
Satyam said in May this year that times were tough and it
had to cut staff costs.
But the company is now bringing back employee benefits,
including cash bonuses.
The double whammy of the global economic slowdown and the
problems caused by a $1bn accounting fraud at the company left
Satyam short of cash and in a tenuous position.
Thousands of staff at Mahindra Satyam, like at other Indian
suppliers, are paid on a project basis. When there are no projects
they "sit on the bench", waiting for work for only a small
retainer. This is where Satyam was planning to make savings.
The company
said in May that these workers were free to leave the company
if they found other jobs.
But the company said this week that it would start to pay
workers for project work.
According to a
report on the Times of India website, Mahindra Satyam said,
"Variable pay is now being re-instated within six months (effective
October 2009)." It also said other welfare programmes would be
re-introduced.
According to the report, cash bonuses are also being
re-introduced.
Mahindra Satyam chief people officer Hari T told the Times of
India, "As we journey through this path towards total revival and
growth, this is an expression of our gratitude to our
associates."