Reliance Retail to skip renewal of 1,200 jobs?

October 16th, 2008 · 5 Comments

Even before the news of 1,900 young aviation aspirants having been handed pink slip by their employer Jet Airways could fully sink in, there was another bombshell waiting from the retail sector, yesterday.According to an NDTV source-based report, Reliance Retail, among the country’s largest retailer, has decided not to renew job contracts of 1,200-odd employees.

Most of the affected persons are not employees as they are not on the payrolls of the company.

Most of the affected persons are working as DSAs (Direct Sales Agents) and are engaged in back-end operations, says the report.

This fits in well with our post six weeks ago (on the 27th August, 2008), suggesting axing of 3,000 of the 20,000 jobs in the retail business.

The non-renewal of the jobs would save Reliance the embarrassment of terminating the jobs. For some of the lucky persons who are working on the company’s payrolls but are no longer required, Reliance is trying to find suitable relocation either within the company or within the group. If both of these do not happen, Reliance will even try to find placement for such persons in other companies by engaging services of recruitment agencies.

Tags: HR/ Employment · Indian Owned · Mukesh Ambani (Reliance)

5 responses so far ↓

Anil Dogra // Oct 16, 2008 at 8:07 am

That’s the way to go, in India, at least. Jets’ way of firing was the US way. That will not be taken well in India. Here people are emotional and have families depended on them. Unlike the West. I think Reliance should tinker their Model a bit, strengthen their Supply Chain, and they shall be good to go.
Aparajita Verma // Oct 16, 2008 at 10:18 pm

Until now, when the economy was growing at 9%+ and service sector was growing at 14%+ every one particularly youth was excited with American style of working including compensations and perquisites but was unprepared for pitfalls that come with such excitement. They could not believe that they could also become jobless overnight.

Indians will take long to reconcile with hardships that come as a consequence of quick growth.

If you want to enjoy American way of life, then be prepared to live with American HR realities as well.
Anil Dogra // Oct 17, 2008 at 9:59 am

Well said Aparajita. This is a learning curve for them.
Apeksha // Oct 20, 2008 at 8:42 am

Agreed. Indian youth should learn to live with American ways. But, who would take care of social safety net available to American workers?
Anil Dogra // Oct 20, 2008 at 6:38 pm

Their Parents. And for their children, they themselves. This is how it works in India, and shall continue working.