Dell India cuts food, transport perks
By Kanwar Sharma

Dell is the second largest personal computer manufacturer in the world with Dell India being one of the star performers.  Last month, Dell India underwent a massive reorganization with the creation of 4 divisions to manage the booming market. Despite a turnover of $900 million in India last year and huge profits, locals are undergoing a painful cost cutting exercise.

Dell India has 12000 employees who have worked together to ensure that its market share grew by 11 percent in 2008 – 2009.

A senior female manager rang techgoss to convey the shock and sorrow amongst Dell employees after their meal subsidy was taken away. Big ships have big burdens as always stated. The recession bite has touched everyone; this has taken a literal manifestation in Dell India.  In what is described an appetite killing move, Dell offices as well as their BPOs at Bangalore, Hyderabad, Mohali and Gurgaon will see all food subsidies cut.
 
Come May 1, 2009 and staff in Dell would no longer enjoy Sodexho meal coupons as the facility is being withdrawn to cut costs. Each employee at Dell is issued a Sodexho Card in which he/she gets a value of Rs.648/- and this amount can be utilised to have food in the company cafeteria. This Sodexho card is heavy subsidized and every staff member only pays Rs.250 from their salary every month for this food facility.

This amount of Rs. 648 is loaded on 1st of every month. Staff can use this amount for buying food and if the amount gets consumed earlier then 30 days he/she has to use cash for buying food.  Conversely, if there are any Sodexho food credits left over, they get carried forward to next month with the addition of new amount. However, the food quality is very low and prices are much higher then market prices.

From 1st May this facility would be withdrawn and staff would no longer be able to use Sodexho, and rather would have to pay in cash for their meal expenses.

Dell has already made some changes in the transportation structure where staff doing a general shift [9-6] is no longer entitled to cabs but have to avail of the bus facility

Techgoss note:  The following is the communication send by Dell India to its employees

From: DELL_INDIA_COMMUNICATIONS
Sent: Monday, April 27, 2009 8:50 PM
Subject: Meal Subsidy - Change in Policy
 
To: All employees of Dell International Services and Dell
India Pvt. Ltd.
From: Ganesh, Sameer, Vijay, Vivek, Harish and the India Leadership Team

In line with our constant endeavor to 20control operational expenditure, ensuring market competitiveness and in keeping with the changing compensation and benefits (C&B) practices, Dell in India would not be extending the meal subsidy provided to its employees. The change in policy is effective May 1, 2009.
 
This policy change would cease all meal subsidy benefits like monthly credit to Sodexho cards, lunch coupons provided in certain locations, Sodexho coupons, etc.
 
To enable employees utilize the available balance in their Sodexho cards, the swiping machines would be operational till June 2030, 2009. Sodexho cards would be deactivated on midnight of June 30, 2009 and recovery / utilization of available balance may not be an option after that.
 
Attached are the FAQ that would help clarify some of your queries.