HR News: 13 Oct, 2023

 1.

Flexport to cut 30% job roles

The move has been anticipated ever since a change in the company’s senior ranks in September. Flexport, a US-based logistics startup plans to cut 30 per cent roles by the end of October. The planned cuts will reportedly affect 1000 out of its 3,300 members of its staff. However, the company is yet to confirm the actual numbers. The move has reportedly been anticipated ever since a change took place in the company’s senior-executive level in September. It is also a part of company’s efforts to stabilise its financial situation, restoring its profitability, in response to a significant drop in revenue. The company is currently focusing on safeguarding its customer-service quality and maintaining the company’s ability to support the growth of its customers’ businesses. Over the past four weeks, a minimum of 11 executives have been let go. This includes Teresa Carlson, a former executive from Microsoft and Amazon, who had assumed the role of president and chief commercial officer at Flexport in January. Additionally, the company has retracted employment offers for numerous individuals who had recently joined the company or were about to commence their roles.

 

2.

Telangana to launch cashless health insurance for government staff

This initiative includes all government employees, their families and EHS-covered pensioners. The Telangana government is introducing cashless health insurance targeting government employees, their families and pensioners  covered by the Employees Health Scheme (EHSTo facilitate the implementation of the plan, the government has established an Employee Health Care Trust (EHCT). The employees will make their monthly contributions to the EHCT, with deductions directly from their salaries or pension disbursements. The state government will also make equivalent contribution to this trust on a monthly basis. The state government will also soon announce a board of Trustees for the EHCT that will play a significant role in formulating policy recommendations. A healthcare programme established by the government of Telangana, India, the Employees Health Scheme (EHS) is primarily aimed at providing comprehensive health coverage to government employees.

3.

7th Pay Commission ensures 4% hike in DA

There are expectations that the long-awaited announcement might be unveiled by October end. Amid the festive season, the Central Government may be preparing to raise the dearness allowance (DA) and dearness relief (DR). The raise will be effective for the Central government employees in accordance with the 7th Pay Commission. According to reports in the media, there is speculation that the Central government is contemplating a 4 per cent increase in DA, which could potentially elevate the existing 42 per cent to 46 per cent. The approval for the heightened DA will be sought during a cabinet meeting, following which employees will see their pay going up. This means that for a basic salary of Rs 56,000 with a new DA of 46 per cent, the monthly increase amounts to Rs 25,760, compared to the current DA of 42 per cent, which is Rs 23,520. The raise will result in a monthly increase of Rs 2,240 and annually, Rs 26,880.