ITC is one of the most valuable corporations in India and
provides direct employment opportunities to over 20,000 employees. ITC encourages full
time direct employment. It also provides indirect employment across the value chain to
nearly 5 million people, whose livelihoods are substantially linked to their association
with ITC. Indirect employment covers the supply and distribution network, agri-sourcing,
social and farm forestry, e-Choupals, women's empowerment and micro-enterprises, and
livestock development.
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Total number of employees |
15692 |
20362 |
Total number of unionised employees |
10605 |
13657 |
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| The employment base is primarily in India and
spread across the country. Though some of the businesses are in the agriculture and
tourism domains, direct manpower numbers do not fluctuate significantly, except in the
Leaf Tobacco business where about 2,300 employees are engaged on a seasonal basis. The
newer businesses, and the growth of the traditional businesses, have facilitated a
significant increase in net employment, reflecting the sustainable nature of ITC's
businesses and its contribution to social and economic capital. It should also be noted
that manpower costs have increased from Rs. 377 crores in 2003-04 to Rs. 546 crores in
2005-06, an increase of over 45% over a period of 2 years, showing ITC' s commitment to
attracting and retaining talent and paying its people a competitive remuneration. All
employees are paid salaries which are significantly higher than the statutory minimum
wages.
The market for talent is extremely competitive in India. There is a huge mismatch
between demand and supply of talent across levels. In spite of these challenges, attrition
amongst the unskilled, semi-skilled and skilled categories was less than 5% per annum
(excluding Hotels) and 11% including Hotels. Amongst management staff, including frontline
staff in retail, hotels and FMCG businesses, the attrition was about 13%. Over 25% of this
attrition was amongst employees who had put in less than 2 years of service, and the
primary reason for the same was market demand. Attrition amongst middle and senior
management was not significant, reflecting the solidity of the work culture and leadership
capability. Employee turnover did not impact business growth and profitability as
reflected in an increase of about 28% in Net Turnover and 22% in PBT in 2005-06 as
compared with 2004-05.
Trade Union Membership
Of the 20,362 employees, 13,657 belong to the unionised cadre. The remaining are
frontline staff, supervisory staff, management staff, lady confidential secretaries and
administrative assistants. The Company permits freedom of association and does not
discourage or discriminate against employees who are members of trade unions. The Company
follows a policy of dealing with recognised unions and has a robust collective bargaining
process through which it discusses and negotiates monetary and non-monetary aspects of
employment impacting unionised employees. All management staff, lady confidential
secretaries, and others who are not part of the unionised cadre have their terms and
conditions of service governed by Company policies and individual contracts of employment,
which are reviewed periodically and mutually agreed.
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