Here's one to boggle the HR mind. What does a company do if it has to absorb thousands of employees but knows it cant keep them for long. It might just not be feasible. ICICI bank faces such a dilemna.
The merger of ICICI Bank and Jaipur-based Bank of Rajasthan, BoR came into effect from 13 August after the Reserve Bank of India notified it. The merger took place through a share-swap deal that valued BoR at around Rs.3,000 crore, at a ratio of 4.72 shares of BoR for one share of ICICI Bank.
Around 4000 employees of BoR are now with ICICI bank. The newly inducted BoR staff are yet to be given new functional responsibilities in ICICI bank and are continuing in their old roles.ICICI has issued to around 400 of these employees, contracts that will end without any prior notice at the end of a five-year term regardless of the age of the employee. Of them about 75 are GMs, Asst GMs and other senior officials. Employees are prohibited from union activities or bringing any "outside influences". Therefore they just have to accept the terms of the contract.
The BoR employees see this as a strategy to lay off excess staff after five years. About 45 BoR employees at junior levels have quit in the last one-and-a-half months, this person added.
The merger of ICICI Bank and Jaipur-based Bank of Rajasthan, BoR came into effect from 13 August after the Reserve Bank of India notified it. The merger took place through a share-swap deal that valued BoR at around Rs.3,000 crore, at a ratio of 4.72 shares of BoR for one share of ICICI Bank.
Around 4000 employees of BoR are now with ICICI bank. The newly inducted BoR staff are yet to be given new functional responsibilities in ICICI bank and are continuing in their old roles.ICICI has issued to around 400 of these employees, contracts that will end without any prior notice at the end of a five-year term regardless of the age of the employee. Of them about 75 are GMs, Asst GMs and other senior officials. Employees are prohibited from union activities or bringing any "outside influences". Therefore they just have to accept the terms of the contract.
The BoR employees see this as a strategy to lay off excess staff after five years. About 45 BoR employees at junior levels have quit in the last one-and-a-half months, this person added.
In the past, ICICI Bank had acquired two other old private banks—Bank of Madura Ltd and Sangli Bank Ltd. It now employs at least 53,000 people. In May, the bank’s managing director and CEO Chanda Kochhar had said it would not lay off BoR staff or discriminate against them. “Whenever we do a merger and acquisition, we treat the employees of the acquired bank as a part of our parivar (family), we will take care of them (BoR employees) as our own employees; we are not here to retrench people,” Kochhar had said.
Though the contract goes againt the words, it may actually be impossible to make everyone happy and ICICI is taking a humane approach giving all employees (400 out of 4000) five years to look for alternatives. However in the market conditions today, some finance / NBFC professionals at mid level are looking for jobs for a time more than 5 years.
The full article at http://www.livemint.com/2010/10/19215520/ICICI-will-lay-off-some-BoR-st.html?atype=tp
Though the contract goes againt the words, it may actually be impossible to make everyone happy and ICICI is taking a humane approach giving all employees (400 out of 4000) five years to look for alternatives. However in the market conditions today, some finance / NBFC professionals at mid level are looking for jobs for a time more than 5 years.
The full article at http://www.livemint.com/2010/10/19215520/ICICI-will-lay-off-some-BoR-st.html?atype=tp
No comments:
Post a Comment