Medical groups are outraged after American multinational pharma company Pfizer Inc’s Indian branch unexpectedly sacked over 200 of its ‘field force’ on June 6, citing ‘redundancy.’ The ‘field force’ is made up of sales promotion personnel known as medical representatives. The decision has sparked debate because Pfizer is one of the global pharmaceutical behemoths that profited handsomely during the COVID-19 epidemic.
Shantanu Chatterjee, general secretary of the Federation of Medical and Sales Representative Association of India (FMRAI), condemned the action, telling NewsClick that the layoffs after making significant profits in India were ‘not done’.’ Whether they want to go for third-party marketing, like (Swiss MNC) Novartis has done in India, or to follow the ‘go-to market strategy,’ he added. According to insiders, this move might be retaliatory by Pfizer, whose vaccine was not permitted in India after pricing discussions failed.
‘They are attempting to commercialize their novel research chemicals under a tight patent environment, whereas India has a lax patent policy. According to accounts, 150 of the 200 retrenched are medical representatives, with the rest being either first-line supervisors or further up in the hierarchy,’ Chatterjee explained. Pfizer’s decision to terminate 200 members of the ‘field force’ has placed these employees and their families in severe financial difficulties. More so when pharmaceutical behemoths like Pfizer have profited handsomely from sales of medications, medical devices, and vaccinations during pandemics.
It is generally documented that the epidemic and the abrupt lockdown in India resulted in massive job losses, salary reductions, and a massive rise in workload across industries, particularly the pharmaceutical business. People are still trying to deal with the pandemic’s consequences amid massive inflation. Pfizer’s management has dismissed a group of field staff at this time. It had announced a VRS (voluntary retirement plan) on April 11, 2022, but received a little reaction. According to an FMRAI news statement, management has now removed 200 staff on their own initiative.
On the condition of anonymity, some of the retrenched Pfizer employees claimed that the principles of natural justice and the law had not been followed. They claimed they were fired on the grounds of ‘redundancy’ of their function to fit and match the new ‘go-to-market model,’ as management referred to it. A Pfizer corporate spokesman told NewsClick via email that the business is altering its ‘go-to-market methodology,’ which includes ‘strategic adjustments to our employees’. The spokeswoman confirmed that certain employees’ services will be terminated, writing that ‘a fit-for-purpose strategy, sadly, demands that some of our colleagues seek their future career outside of Pfizer.’
According to the statement, the affected employees ‘are being fully supported during this transition with counselling, career transition services, and extended medical insurance in addition to severance pay.’ The firm announced that it will ‘additionally hire numerous more employees, including subject matter experts, digital and medical professionals’ to enhance its ‘customer and patient reach.’ However, the retrenched employees claimed that the corporation did not perform an objective review of the key aspects and criteria to fit and meet the new ‘go-to-market strategy.’
‘Despite having bilateral industrial relations and negotiating five salary settlements with FMRAI, Pfizer has resorted to victimization without any negotiation,’ FMRAI claimed. It went on to say that this ‘unfair act of treachery by Pfizer management is a step toward trampling workers’ negotiating and legal rights, which will have a negative impact on industrial peace and harmony’. The FMRAI asked that the ‘illegal terminations’ be reversed immediately, or it would be ‘compelled to take up the subject both legally and through agitations in the interest of the members and common people.’
In addition, while the rest of the world was dealing with the epidemic, Pfizer Inc. was busy making money. Pfizer, in particular, gained enormous gains. Over the course of a year in 2021, the US pharmaceutical giant increased its income by 95 percent, from around $42,000 million to $81,000 million. Pfizer Inc.’s net income increased by 140 percent between 2020 and 2021, from around $9,000 million to $22,000 million. Pfizer’s 2021 income is approximately seven times India’s recently planned health budget (Rs 8,90,000 million or $11,867 million).
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