Forum of IT Professionals (FoIP), a union for IT professionals has termed this layoff as illegal retrenchment.
Mass layoffs have now become common in the IT sector. Last week, around 100 IT professionals were shown the door at CDK Global, a leading enabler of automotive commerce.
A day after the layoffs, there was yet another significant development—CDK Global entered into a definitive agreement to acquire ELEAD1ONE, an automotive customer relationship management (CRM) software company. Nasdaq-listed CDK Global has a turnover of two billion dollars. It launched its operations in India, in May 2015 and has a headcount of 900 in Hyderabad.
The Forum of IT Professionals (FoIP), a union for IT professionals, has has termed this layoff as illegal retrenchment. According to FoIP, the Company has been making huge profits that run into hundreds of millions of dollars.
Kiran Chandra, president-FoIP says, “With no notice or compensation whatsoever, the Company is flouting all the rules and laws of the land.”
“CDK needs to understand that it is operating in India and has to abide by the law of the land. They cannot think and act as if they are above the law. We strongly condemn the actions of CDK Global and demand that the employees be immediately taken back into their jobs,” he adds.
Members of FoIP have also met R Chandrashekaram, joint commissioner (Ranga Reddy zone), Telangana Labour, Employment Training and Factories Department, who promised to ‘take action’ on submission of a written petition.
The petition on unlawful termination of CDK Global employees will soon be submitted to the state Labour, Employment Training and Factories Department.
However, Arvind Chaturvedi, managing director, CDK Global (India) said in a statement, “As we align ourselves with our growth strategy, we will need to review organisational structures and roles from time-to-time. This business-led action impacted 103 employees across centres in Hyderabad and Pune, and actions taken were driven by organisational redundancy as well as employee performance.”
“CDK remains committed to deal with its employees in a professional and empathetic manner, providing the necessary financial and outplacement support, where appropriate. These decisions are always made through consultation and mutual agreement,” he added.
“CDK Global continues to be heavily invested in India. It was 800-strong in its first year in the country, and has grown to 1,400 employees. We continue to recruit and are looking to add another 150 people in this quarter,” Chaturvedi said.