Islamabad: Descon Engineering has announced pay cuts up to 30 per cent following current global economic slowdown in wake of coronavirus outbreak effective from April 2.
In addition to placing cut on salaries, management of Descon has also announced 100% freeze on all new and replacement recruitment.
Chief Executive Officer (CEO) and leadership team members will receive a 30% reduction in April and May payroll.
The current global economic slowdown is posing challenges for Descon Engineering in all regions and business segments we operate in. The situation requires that we must act in a financially responsible and proactive manner, CEO Descon Engineering said.
The Leadership Team met and reviewed all our business goals, objectives and processes in order to find ways to curtail our expenses and increase revenue to protect the future well-being of Descon Engineering and its employees.
However, all management employees from Grade B to G will receive a 20% reduction in April payroll. ‘Should the situation worsen during the month of May 2020, an additional 10% reduction will apply for the month of May 2020 payroll capping at 30 per cent, CEO Nadeem Bajwa Chief Executive Officer Descon Engineering, said.
As a result of this analysis and in an effort to manage the Company’s cash-flow during the time of economic uncertainty, the leadership team has come to the some difficult but necessary actions. All employees are requested to continue to work their regular full-time schedule, he said adding that there is a 100% freeze on all new and or replacement recruitment / appointments / hiring till further notice – irrespective of location.
Please note that these are “Temporary Actions” and are applicable to all regions local, overseas, head-office, project sites without any exception, Bajwa said.
Descon has been at the forefront in supporting employees and their families over the last 42 years, however, this is an extremely difficult decision and the choice we made is the best option at this time. We are trying to minimize the impact for our employees, while ensuring business continuity.
The Leadership Team is monitoring the on-going situation at regular intervals. We are committed to take all the necessary steps to persevere and weather the economic slowdown to be able to compete effectively after the crisis is over, he said adding that We appreciate the commitment and hard work of each and every member of the Descon family and sincerely believe that with our very talented workforce, we will emerge from this crisis a stronger company.