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Employee Communication 15-04-2020

The letter discusses how the pandemic has severely impacted economic activities and the company's operations. All plants are currently not operational due to the lockdown. The management has ensured salary payments for March and will continue doing so. They are looking at reducing fixed costs and conserving cash. The leadership has agreed to salary cuts of 5-35% to help protect other employees' salaries. The letter asks employees to commit to targets and cost reduction once operations restart. It states the company will need to make hard decisions to ensure survival and growth during this crisis.

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Ravi Upadhye
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21 views2 pages

Employee Communication 15-04-2020

The letter discusses how the pandemic has severely impacted economic activities and the company's operations. All plants are currently not operational due to the lockdown. The management has ensured salary payments for March and will continue doing so. They are looking at reducing fixed costs and conserving cash. The leadership has agreed to salary cuts of 5-35% to help protect other employees' salaries. The letter asks employees to commit to targets and cost reduction once operations restart. It states the company will need to make hard decisions to ensure survival and growth during this crisis.

Uploaded by

Ravi Upadhye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PRISM JOHNSON LIMITED

(Formerly Prism Cement Limited)


H & R JOHNSON (INDIA) Division
CORPORATE OFFICE

Ref. : PJL/VA/SC/CIR/2020
Date : 15th April, 2020

TO : ALL EMPLOYEES

FROM: MR. VIJAY AGGARWAL


MR. SARAT CHANDAK

Dear Colleagues,

The Country is facing a severe pandemic never before witnessed by humankind. Under these
circumstances, we sincerely hope that you and your family members are safe in your home.

Consequent to the pandemic and the resultant lockdown to contain the same, all economic activities
have been adversely impacted and has come to a standstill. Our plants are not yet operational. With
no dispatches as markets being suspended, it has led to poor collections. Despite all adversities we
ensured payment of salaries and wages to our employees within the stipulated time for the month
of March and shall continue to do so in future.

Faced with such a crisis of enormous proportions, we as an Organization have been looking at
several aspects of our Business processes and operations to focus on the twin objectives of
conserving cash and reducing fixed cost. Three Cross Functional Teams (CFT) across the Divisions
have made a number of recommendations which need to be implemented once the lockdown is
lifted and normal operations are restored in a phased manner. Please note that we are hoping to
start some activities from 20th April at permitted locations across our Divisions. Meanwhile our
finance team is working on raising funds by additional borrowings to ensure continued liquidity to
tide over these challenging and uncertain times

One of the proposals of reducing fixed cost calls for a sacrifice from our Management Team. The
Leadership, leading by example, have agreed to take a 5% – 35% pay cut at selected levels of
Management. In order to deal with this unprecedented crisis, it was felt that 30% of the employees
sacrificed a little, it would to help protect the salaries of the remaining 70% of the employees.

We have therefore decided to take pay cuts as follows:

Employee Designation Gross Salary Cut for April, May, June 2020
MD 35%
ED & CEO 30%
President , Jt. President 25%
Sr. VP, VP, AVP 20%
Sr. GM, GM, DGM 15%
Sr. Manager , Manager 10%
Asst. Manager / Deputy Manager 5%
Others NIL

We now reach out to each one of you. Post lifting of lockdown, we must ensure and commit our own
individual contribution. The Sales & Marketing team should collectively ensure to meet the Sales &
Collection Targets. Similarly the Operations & Logistic team should ensure targeted production and
cost reduction. At the same time each individual should focus on cost reduction in their area of
operations. The recommendations of the CFT, particularly on Fixed Cost would have to be
implemented with full passion and in the right spirit.

Due to massive disruption in Global economy, recession is likely in the current year. We are
preparing for a scenario where our sales may fall by almost 30% over last year; hence it would be
paramount to achieve targets as mentioned above. As a Company, we have several strengths such as
cost effective assets, successful brands and a good team of employees amongst others. However, as
we go along, we will need to reinvent ourselves and take many hard and painful decisions in the
larger interest of all stakeholders, for short-term survival and sustainable long term growth.

We would appreciate your efforts and commitments to ensure that we overcome this crisis and
come out much stronger as an organization. Let us collectively come together as One Prism Johnson
Team and strive towards excellence and bounce back with all vigour and glory to a place which is
rightfully ours.

Wishing you and your family a Happy Baisakhi / Happy Vishu / Happy Puthandu / Happy Bohag Bihu/
Happy Pohela Boishakh / Happy Pana Sankranti.

Vijay Aggarwal Sarat Chandak


Managing Director Executive Director & CEO
Prism Johnson Limited H&R Johnson (India) Division

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