Wipro cuts salary offers to freshers awaiting onboarding; IT union NITES slams move as 'unfair'

Wipro's move to cut salary offers to freshers awaiting onboarding by almost 50 per cent under one programme has been termed "unjust" and "unacceptable" by employees union NITES, which demanded that the IT company should reconsider its decision.

Wipro's decision reflects the global macroeconomic uncertainties and the challenges in the demand environment for tech companies, say market watchers.

The Bengaluru-headquartered IT services major, Wipro, recently reached out to candidates to whom it had earlier rolled out an offer of Rs 6.5 lakh per annum (LPA) and asked them if an offer of Rs 3.5 in annual compensation would be acceptable to them, instead. These candidates were reportedly waiting to be onboarded.

IT sector employees union NITES has slammed the move, saying the decision is "unjust" and "goes against the principles of fairness and transparency". NITES has demanded that the management reconsiders its decision and engages in meaningful dialogue with the union to find a mutually beneficial solution.

Wipro, in a recent communication to candidates who have successfully completed Velocity training programme, said: "Like others in our industry we continue to assess global economies and customer needs which factor into our hiring plans. We appreciate your commitment and patience as we try to identify joining opportunities for you."

Wipro went on to say that "currently we have certain project engineer roles available for recruitment with annual compensation of Rs 3.5 lakh. We would like to offer all our Velocity graduates in FY23 batch an opportunity to opt for these roles."

When contacted on the issue, Wipro in response to an e-mail query said: "In light of the changing macro environment and, as a result, our business needs, we had to adjust our onboarding plans."

"As we work to honour all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills - both through the interesting and innovative work that we do, as well as our extensive learning and development programmes," Wipro said.

Wipro said it is committed to the growth and success of all its employees and looks forward to welcoming this new group of recent graduates.

Meanwhile, IT sector employees union NITES (Nascent Information Technology Employees Senate) said it strongly condemns Wipro's "unethical" move to reduce the salaries of employees awaiting joining from a package of 6.5 lakh per annum to 3.5 lakh per annum.

"The decision to cut the salaries of the employees without prior consultation and negotiation is not only unjust but also goes against the principles of fairness and transparency. It is unacceptable that the burden of the company's financial troubles is being placed solely on the shoulders of the employees," Harpreet Singh Saluja, President of NITES, said.

NITES has demanded that the management reconsider its decision and engage in meaningful dialogue with the union to find a mutually beneficial solution.

"We will not stand by while the rights and dignity of our members are being violated," Saluja said.