"Job cuts not a solution; need to find alternatives in post-Covid world ", says Ratan Tata

Guwahati: Tata Group Chairman Emeritus Ratan Tata on Tuesday, terming the laying-off of employees a "knee jerk reaction", said that it should not be a solution and the way of doing business has to change in the post coronavirus world.

While several Indian companies cut their workforce during the countrywide lockdown. Tata Group was also badly hit in the pandemic-induced slowdown but it has not fired any employees to date. However, it has slashed salaries of its top management by up to 20 percent.

Ratan Tata said, "Accept that you have to change in terms of what you consider is fair and necessary in order to survive. One cannot continue to do business in certain ways and one won't survive if you are not sensitive to your stakeholders."

Suggesting work from home as an alternative, Mr. Tata said laying-off people will not help in solving one's problems as he or she is responsible towards these employees.

Speaking about the importance of ethics in business, he said, "Business is not only about making money; one has to do everything right and ethically for customers and stakeholders."

While the Covid-19 crisis has created multiple challenges on the economic and healthcare front, the industrialist believes that this could be the most opportune time to explore innovative and creative solutions.

He added that some of the most interesting solutions have been discovered during difficult times. Terming the pandemic as "one of the worst crisis" the human race has faced, Tata said, "We must fight this with a spirit of solidarity, resolve, empathy and understanding. We must unite to win the battle against Covid-19."

Meanwhile, Tata pointed out that the way several migrants were rendered jobless during the pandemic shows the poor business ethics followed in the country. "These are people who have worked for you. You send them out to live in the rain. Is that your definition of ethics when you treat your labor force that way," questioned Tata.

In his reply to what he missed the most during the lockdown, the businessman said that he hasn't gone out since March when the lockdown was announced. "It is not about yachts, manors, and huge estates. It has been a wonderful experience of interacting with people who stand for the same ideas as you do. That's something I have come to miss," said Tata.

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