Global recession: What choice do employees have?

Work ethics
As ‘corporate Sri Lanka’ looks to 2009 with hope of peace and better business prospects, the dawning is tainted with some gloom for much of ‘working Sri Lanka’. Global recessionary pressures coupled with our own mismanagement woes have dashed the hopes of many with no annual bonus, and in the case of some – increments, which also amounts to no promotions. This is not a situation limited to a sector or a few companies; it’s the case almost everywhere and the lists of organisations that have already taken some ‘drastic’ steps include an illustrious bunch that would make some impressive reading.

What choice do employers have when costs are so high, and returns marginal? It is only fair that they must act in the best interest of the company and its stability, which ultimately amounts to the welfare of employees. But can that outweigh the plight or interests of employees? Their costs too are rising, and more often than not, people make plans based on supplementary payments, promotions and increments. That contingency, or security, has been taken away for most. Though we may not hear the despair and distress of many of them, their problems are very real and sometimes very serious. But what alternative can we offer them? We try to explain to the best of our ability, but do they listen, do they accept?

Office relationships
Culling some of the worker sentiment, we find those who feel it is time to leave a one company and join another. But, what good does that really do? It’s another stint of probation – at a time you’d rather want to feel secure, and also what security does that new prospect really offer at a time like this?

There’s another group who think its best to leave our shores and seek prospects overseas. It’s best they be reminded that the Sri Lankan set up is a protective shield against hire and fire, and even if an organisation deems you fit to take the kick, they cannot do so without giving adequate time and compensation. It’s not sunny out there in the rest of the world; you could leave office tonight feeling all’s well, only to find yourself on the list of rejects the next morning. Your friends working for multinationals, particularly financial institutions would have many an interesting account of what’s really going on. Mind you this has happened to a number of top notch high-flyers from all over the world, including regional directors who have been at the helm of turning around multiple markets.

Considering their achievements in the corporate sphere and what be the outcome now, others would shudder to think what prospects they have in the current environment. I’d like to think there’s no huge threat of retrenchment here in Sri Lanka like what’s happened in the rest of the world – but why take a chance?

The banking sector seems the least affected, but what when lending hits an expected low as during next year. Take into account the growing list of bad debt which is a stark reality. Whilst Sri Lanka would in all probability avoid the sad state of those US financiers, it is more than likely the local sector too would be in for some tough times in the year ahead. A hedging deal gone wrong may cost another institution another billion in losses. Recovery would come, but it would take time coming – particularly on the global stage. It’s time to “tighten our belts” and overcome the short-term impacts.

Risky business
Risk analysis and risk-based lending would be key elements for financial institutions, and it would be correctly deemed imperative to maintain stability. Though such instruments are considered discriminatory and impeding, now might be the time to advance it. Banks and regulators must be vigilant to identify and control where necessary. In India, a father and son have swindled a string of global banks for six years, before disappearing with millions. For six years the world’s biggest banks were swindled, with paid actors showing a pseudo steel factory. What do bankers know about steel? But is that really an excuse…Corruption is a lot more sophisticated than it used to be, and it’s time we kept pace with the trend.

And so this is Christmas. ‘Tis the season to be jolly, but with all this folly not everyone’s in the mood to bring out the holly. It’s time to take stock of the situation as corporates, as individuals and also for those in power – its time to take measure and adjust and amend accordingly. The picture is not a pretty one, but that’s reality; and the sooner we learn to accept and amend – the sooner we would bring out the holly. As organistions, as employers and employees we must work together to overcome. It is our collective effort that will bring us out of the mire. We cannot wait while financial markets correct themselves on the global stage – it is likely that they would take their time. Let’s try set out own time.

drama
Away from the woes of counting pennies we observe the power plays of Sri Lanka’s pole-vault politics, which unlike everything else is plentiful of pennies. The UNP welcomed back its rebel as the party’s Deputy Leader amongst a host of others. Jayasuriya’s appointment drew mixed reactions, and the majority showed surprise that the party would welcome back and fete him with such position after all that’s happened. But that’s politics in Sri Lanka, and its time that we cease to be surprised with all that goes around in those circles. With the hedging fiasco also in full swing, with the minister pointing fingers back at other quarters, the drama is transcending ever so swiftly to the next stage of the popular sport – pass the ball! Let’s try and take heart that in the end ‘Justice’ will prevail, and the events of late give us that confidence. Whether that justice would trickle down to our tanks in the form of real relief we must wait and see.