Company thinks the following is the right thing to do.
We have a huge manpower requirement within short amout of time. So they want to hire people with the same or higher pay as the people who've been in the company for almost 5 years. But they won't do pay correction for existing employees. Also the existing employees didn't get a single penny as bonus for past one year.
The catch is, all these new guys will do very basic entry level work and will spend almost 6 months getting used to the work. Whereas the existing employees have to work extra hard to fullfill the new requirement.
When questioned about any pay increase or bonus for existing employees, they said this is how other businesses runs as well and no bonus or pay increase for existing employees.