Steel major SAIL plans to recruit about 600 employees this fiscal even as global producers like ArcelorMittal and Corus are trimming workforce and salaries to stay afloat amid the economic downturn.
"On an average we recruit about 500-600 trainees every year from institutes like IIMs and IITs. This year we will be recruiting the same, about 500-600 graduates," SAIL chairman S K Roongta said.
SAIL currently employs a little under 1,21,000 people. The freshers, to be roped in as management trainees (technical and administrative), would handle the extended operations of the company in near future.
The company is in the process of expanding its production capacity to 26.3 million tonnes by 2010-11 for which its would be spending in excess of Rs 78,000 crore (Rs 780 billion).
Though the Navratna PSU plans to recruit freshers from premier institutes like IITs and IIMs, it also anticipates its workforce to shrink by about 6,000-7,000 in 2009-2010 on account of "natural separation."
SAIL on an average pays its employees an annual package of Rs 500,000. It is eying a saving of about Rs 350 crore (Rs 3.5 billion) per year through reduction in its employee strength.
Last year, nearly 7,500 employees left SAIL by way of superannuation and voluntary retirement. This year it expects a similar number of people leaving the firm.
"We are likely to save about Rs 350 crore this year on account of the natural separation," Roongta said last week while announcing the company's financial results.
The shrinking of the workforce will help the company in fending off the impact of the upward wage revision of the employees amid the slump in steel demand and steep fall in prices which is hitting the company's profit.
SAIL saw its net profit declining by about 38 per cent at Rs 1,487 crore (Rs 14.87 billion) for the fourth quarter of the last fiscal mainly on account of lower sales realisation.
To tide over the prevailing economic gloom and the liquidity crisis, global steel majors like ArcelorMittal and Corus are undertaking programmes to trim workforce. Besides cutting jobs, the L N Mittal-led firm is also slashing salaries of its top brass.
