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Jet to cut salaries |
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By: Agencies |
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Date:
2008-11-24 |
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Place: Mumbai |
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GROUNDED: Jet Airways had upset its staff last month after the airlines sacked 850 employees. File Pic | Employees drawing a monthly salary above Rs 75,000 to be affected. Younger pilots want VRS for older employees
Facing the heat of economic slowdown, the Jet Airways management yesterday suggested a five to 10 per cent salary cut for its employees drawing a monthly salary above Rs 75,000 and a voluntary retirement scheme (VRS) for older staff.
Jet Airlines currently has 1,000 pilots with 200 expat pilots.
Cut above Rs 75,000
A meeting of the management, presided by Jet Chairman Naresh Goyal, at a five-star hotel in Mumbai, has decided to have a graded salary structure for all employees but kept a threshold for it saying those drawing Rs 75,000 per month would not face any cut in their salary, sources said.
The chief executive officer of the company will lead the way by taking a 25 per cent salary reduction, said a Jet official. The management is also understood to have set up a committee to study the graded structure.
'Old, a burden'
Pilots suggested that Jet should do away with the expatriate pilots, as they were a "huge burden" on the airlines because of their high salary packages, a source close to the development.
VRS on the cards?
A proposal was also mooted to provide VRS to some of the older employees to
cut cost.
"However, Goyal did not accept the proposal, saying the company did not have money to offer such a package," the source said.
A K Shivanandan, senior general manager of public relations of sister airlines JetLite, said he was not aware of the development.
Meeting today
Jet Airways Chairman Naresh Goyal is slated to meet pilots and other officials today to discuss cost-cutting measures, including salary cut and non-renewal of contractual agreements with expatriate pilots.
The decision on salary cuts will be announced after that, the Jet official said. Meanwhile, sources said the Jet management was unlikely to reach an agreement with the pilots in the meeting as they would refuse any
pay cut.
The company's decision comes close on the heels of its chairman's recent remarks that Jet was already "over-staffed and reeling under heavy losses".
Pilots refuse cut
The management was unable to convince its domestic pilots to accept salary cuts. The airlines management has suggested a 10 per cent slash in pay packets of junior pilots and a 20 per cent cut for senior pilots.
Indian carriers flying low
With passenger traffic falling sharply owing to high air fares, the number of flights operated by Indian carriers also registered a substantial decline between March and November. The number of flights each week fell from 10,922 in March to 9,635 this month. |
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