Flipkart and Indian Institute of Management, Ahmedabad are at loggerheads after the e-commerce company deferred the joining of IIM-A students from July 2016 to December 2016. This leaves the recruited students unemployed for seven months. Though the company has offered the students a compensation bonus of Rs 1.5 lakhs, the institute is not happy about it at all. Also Read - iPhone 11, iPhone XR up for grab with massive discount on Flipkart Big Saving Days saleAlso Read - Flipkart Big Saving Days sale begins: Pixel 4a, Realme X7, Samsung Galaxy F62, more on discount
IIM-A s placement committee chairperson Asha Kaul sent a scathing email to Flipkart to express displeasure over the delay in joining of its students, ET reports. In the letter, the chairperson stated that not just IIM, but other top B-schools are also not happy with this move and would reconsider calling the company for campus placements in the future. He also mentioned that the compensation of Rs 1.5 lakhs hardly qualifies as compensation for seven months of unemployment, given the fact that many of the students have the burden of heavy student loans.
The IIM-A chairperson also pointed out that Flipkart CEO had given an undertaking that joining will not be deferred later than December this year. The company has also assured that the payment of the compensation will be rolled out on a monthly basis starting July and not as a lump sum amount as joining bonus or arrears.
Flipkart has responded saying that the reason behind the delay in joining is due to the ongoing restructuring process. “In the past few months, we’ve been working on restructuring our businesses to strike the right balance among key levers such as innovation, strategic execution, and operational excellence. The organizational restructuring involves the creation of new business units in some cases and mergers in other cases. For example, we integrated our engineering organization and created new units like the customer shopping experience group. This restructuring process is ongoing,” Flipkartis quoted as saying.
“As a part of this ongoing restructuring, the campus program will also go through a comprehensive overhaul to ensure that it is in line with our new business structure and that our campus recruits start working towards larger company goals from Day One,” it added.
Flipkart said it was confident that its trainees will be on board by December. The company though did not comment on demands of raising the compensation for affected students. Even as the spat continues between IIM-A and Flipkart, the students will be the ones to suffer the most. Right now they might have to wait for another seven months before taking up the job or hope Flipkart gives in to their demands of increasing the compensations. For Flipkart, it’s another bad PR and it might take all possible actions to ensure it is one of the top choices for the Indian management students.