FITES FIGHT AGAINST

ALLEGED LAYOFF AT TCS

Layoff:
Suspension or termination of employment (with or

without notice) by the employer or management.

Layoffs are not caused by any fault of the employees but
by some legible reasons such as lack of work, cash or
material.
Reasons may be like Economic Downturn or unavailability of work.

Performance related Restucturing:

Restructuring the vertical hierarchy like changing the

work structure or type of work allotted to an employee

based on his/her performance.
Sometimes the workforce may be asked to leave as well
as per their performance in the organization.

Workforce optimization:
Enhancing the work structure of an organization mainly

to become more efficient i.e. quality management.

It is a continuous process which happens throughout
then year taking into account employee performance,
business needs, and peoples aspirations.
In-house Trainings, Motivational Session.

Workforce restructuring:
Restructuring the workforce to meet certain goals.
Restructuring in the organization as per the changing

environment such as technology.

Mainly done for job enrichment.
It includes change in resources and information.

Termination:
Cancellation of the services of an employee either in whole or in

part as per the contract between employee and employer.

Termination for cause.
Termination for convenience.

It may be a voluntary decision of an employee or involuntarily

taken by the employer.

Termination of the contract of employment by mutual consent of
the employee and employer is correct, fair and lawful.

Dismissal:
It is involuntary termination of services of an employee in an

organization.
Termination of services of an employee as per his/her
performance.
It is often avoidable, as it can be a result of an employees
performance in the organization.

Explanation of events in the TCS case

From the Groups Perspective

The situation seems more like layoff of the employees

as a part of regular restructuring of workforce in the

organization.
Demand of high end services was increasing in terms of
new technology and services. Therefore, TCS wanted to
change make space for the people who are more tech
friendly and high determination of work and have less
dependency.
Cost cutting in order to increase operating margin.
Less workforce, reduced expenses and high operating margins.

From TCS Perspective

Workforce restructuring
Regular attrition policy of TCS
(1% to 2% of workforce)
Voluntary retirement

From FITE Perspective

Dismissal.
Sacked are not underperformers.
Illegal retrenchment aimed with more profit margin.

From the perspective of employee who

were forced to leave TCS
Injustice dismissal
The reason TCS has given has no base.
Politics
Most of the people who were asked to leave are some

of the best performers in the organization.

From the perspective of employee who

survived the event
Workforce optimization
Organizations profit centric view

Consequence of Dismissal and

Layoff
To the employees who were forced to leave
TCS
In the case of layoff:
Feeling of Unjust by tagging them as underperformers.
Employees can create union to counter the layoff.
Hope that they will be re-hired in the organization.

In the case of dismissal:

The employees may resort to file legal suit.
They may tend to join External Organization in the hope that

they will be heard.

To the employees who survived

In the case of dismissal:
Fear will increase in the employees.
The employee may work ever harder to avoid any

similar consequences.

In case of Layoff:
Lost faith in the organization.
Loss of trust and reputation among employees.
Will ultimately join Trade unions or External

Organizations.

To TCS:
In case of dismissal:
There may be legal suits against the organization.
Hampering of brand image.

In case of Layoff
The trust once lost is very difficult to regain.
Employees motivation to work will be lost.

Other actors involved

Government
Govt. may interfere in the case for the settlement

between the organization and the employee.

Redresser
Other bodies such as YTNM & FITE will come forward

claiming to work for the welfare of the employees.

Counsellors/NGOs
Employees who were severe affected may seek for

the help of counsellors to regain the same motivation.

Digital media
To spread the news
To bring the issue in front of public.

Conclusion
TCS has lost its image in front of not only its

employees but general public as well.

Mistrust has increased
Retained employee started leaving the organization.

Employees motivation has decreased, resultantly TCS

has to announce bonus to employees.

TCS has been a victim of Social Media, a large number
of campaigns have been launched against them.
Questions regarding their policies aroused
Audio clip of employee getting fired.

TCS has been a victim of the power of Employees

unions.
Strikes/Marches against TCS.