Softlogic Holdings too reduces staff salaries
Softlogic Holdings PLC today (08) implemented salary reductions of all employees with a salary of Rs. 50,000 or above for a period of three months, The Sunday Morning Business learns.
The salary reductions will be between 5% and 30%, with employees in the salary range of Rs. 50,000 to 100,000 being docked 5% while those in the Rs. 1 million and above salary range being docked 30%. All bonuses and pay increases have also been put on hold for these three months.
These measures have been brought about because the Covid-19 pandemic has “eroded the group’s performance with most companies closed for business,” notes Softlogic Holdings PLC Chairman Ashok Pathirage communicating these decisions in a memo to the staff, which has been seen by The Sunday Morning Business.
Furthermore, the diversified conglomerate has frozen all recruitments and halted all new business plans and capital expenditure. The company has also stopped overtime payments and all expenses related to training and development.
“During this period, we appeal to staff to give their best, double up on their performance objectives and commit themselves with utmost diligence and good faith and thus cooperate with management to implement these positive decisions until Group performance goals are successfully reached,” Pathirage requested in the memo.
Softlogic Holdings is the second conglomerate to initiate salary cuts, after premier blue chip John Keells Holdings PLC implemented salary cuts of between 5% and 35% on the basic salaries of all employees in Executive and above levels whose basic salaries are over Rs.50,000 earlier this week.
Last week, Sri Lanka’s largest apparel exporter Brandix Lanka Ltd. (BLL) stated that it is cutting all executive cadre salaries by between 5% and 60% depending on salary levels, while its Board and Chief Executive Officer (CEO) were foregoing their compensation for the next six months.