The Hindu Business Line : Satyam staff worried as bidding process begins

With the Satyam Computer Services Board setting the ball rolling for selecting the strategic investors, associates at different levels are a worried lot – as to what will happen to their future when a new management takes over.

“The request for proposal (RFP), which would be given to the prospective bidders, may contain certain indications to protect their interests,” a senior Satyam executive said.

The Chief Executive Officer of Satyam, Mr A.S. Murty, however, has not responded to a query whether the company would factor in the concerns of associates and would require the new investor to protect the jobs.

Interestingly, the SEBI-approved process prescribed a three-year lock-in period for new promoters for sale of equity.

Reflecting the concerns of several associates, Satyam staffers spoken to by Business Line said “what will happen if the new investor wants to resize the workforce. They should incorporate clauses in the bid process to protect us.”

This apprehension was reflected in a top-level executive too. “The new management would come in with its own set of managers. They would study the situation thoroughly and might go in for optimisation of human resources. Also, this might create some friction at the top level,” he felt.

Ranbaxy deal example

He, however, pointed out there should be enough insulation for the staff. Citing the example of the Ranbaxy-Daiichi Sankyo deal, he said: “The deal ensured continuation of the board and management for five years, ensuring normal operations.”

The Chief Executive Officer and Managing Director of Ranbaxy, Mr Malvinder Mohan Singh, had said that the commitment ensured continuation of the existing management.

SEBI RULES

“According to the normal SEBI rules, my contract is for a period of five years and will be renewed, thereafter,” he had said.

The situation, however, is not that gloomy. The whole exercise had begun after the Government decided to protect the company from collapsing, safeguarding the interests of employees.

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, and the Minister for Corporate Affairs, Mr P.C. Gupta, too went on record stating that the primary concern of the Government was to see to it that the jobs of about 53,000 were protected.

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Satyam staff worried as bidding process begins