Karnataka govt tells IT/BT companies not to lay off, instead cut salary
Bengaluru: The Karnataka government on Friday asked Information Technology, bio-technology and allied companies not go for closure or layoffs citing lack of work orders due to COVID-19 lockdown and instead consider measures like cut in salaries among other things.
It said, IT/BT companies in the state will resume operations with 50 per cent from their office space after April 20.
Deputy Chief Minister C N Ashwath Narayan, who is also in-charge of IT & BT department, held video consultation with the captains of the industry in light of the disruption caused due to the lockdown, and discussed on the way forward - both for effective implementation of the lockdown as well as the future course to deal with the unique circumstances.
"Immediately we are going to permit 50 per cent, but it doesn't mean that they will be able to mobilise 50 per cent immediately it will take few weeks for them to do so.
Gradually percentage will increase and it will start getting back to normalcy," Ashwath Narayan told reporters.
Stating that there were discussions regarding layoffs, he said, companies should not go for layoffs, instead of that gradation or deduction in the salary should be taken up, so that it doesn't affect the functioning of companies also that are facing less orders.
"On handling such financial crisis they (industry) wanted government consideration with mutual cooperation and understanding the concerns," he added.
Pointing out that concerns were also expressed regarding measures or protocol that needs to be followed if any positive cases are reported in any of the offices spaces, Ashwath Narayan said, certain guidelines will be issued in consultation with the Health department.
"Once the relaxation is given this may become the usual phenomena, as cases will be reported here and there...
so in that scenario how we need to work and handle the situation is important, so we will be working on protocols how to handle the situation. So far we have planned for residential areas and not for work spaces," he said.
The Deputy Chief Minister said the IT and BT industry leaders are extremely happy with regard to the support system or backup given by the government of Karnataka, particularly IT/BT department.
Even during this crisis period in the entire world, Karnataka and Bengaluru was able to get good reputation and become reliable partner,as IT/BT service providers in both the city and the state were able to provide excellent quality services to their clients without any interruption, he said.
If you compare with any state or country, we have done extremely well, and hoped that this would get more business, he added.
Biocon chief Kiran Mazumdar Shaw, Infosys co-founder Kris Gopalakrishnan, who is also the Chairman of Vision Group IT, were among others present at the video conferencing.
Noting that concerns expressed by the industry regarding passes for employees to commute to office, Ashwath Narayan said, the government would make necessary arrangements in this regard, considering measures that need to be taken after April 20.
Regarding providing transport facility, they can seek for services from public transport Bangalore Metropolitan Transport Corporation (BMTC) on a contract basis, he said, adding that "We will be ready to facilitate BMTC."
The Minister said the industry leaders wanted internet services to continue with same quality and without any interruption.
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Trump says EU has until July 4 to approve last year's trade deal or it will face higher tariffs
Washington (AP): President Donald Trump has said in a social media post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year's trade framework by July 4.
The announcement on Thursday appeared to be a deadline extension after the president said last Friday that EU autos would face a higher 25 per cent tariff starting this week. Trump made the updated announcement after what he described as a "great call" with European Commission President Ursula von der Leyen.
Still, the US president was displeased that the European Parliament had yet to finalize the trade arrangement reached last year, which was further complicated in February by the US Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!" Trump posted. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
His latest statement indicates he might be backing away from his earlier threat on EU autos by giving the European Parliament several more weeks to approve the agreement.
Under the original terms of the framework, the US would charge a 15 per cent tax on most goods imported from the EU.
But since the Supreme Court ruling, the administration has levied a 10 per cent tariff while investigating trade imbalances and national security issues, aiming to put in new tariffs to make up for lost revenues.
