BackPay delayed, Jet Airways pilots warn of non-cooperation
Jet Airways plans to disburse salary for August in two instalments in September, according to an internal note
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Mumbai: Jet Airways (India) Ltd will delay paying salaries for an additional two months of September and October as the loss-making airline battles its financial woes.
Jet Airways has already delayed salary payments for July and August. It now plans to disburse salary for August in two instalments in September, according to an internal note sent on Thursday to employees by Rahul Taneja, the airline’s chief people officer. The note was reviewed by Mint.
Those affected are employees holding ranks of general managers and above, cockpit crew and aircraft maintenance engineers, Taneja said in the note.
He said salaries for August would be disbursed in two instalments—half by 11 September and balance by 26 September.
“For the months of September and October 2018, the same disbursement schedule will be followed," Taneja said.
Also read: Jet Airways drafts revival plan after ₹ 1,323 crore Q1 loss
A spokesperson for Jet Airways said “issues such as the disbursement of salaries are being amicably addressed and we continue to resolve ongoing concerns through constant dialogue with the airline’s management team."
“The management has been receptive of the cost saving initiatives suggested by NAG committee," the spokesperson said. NAG is its pilots’ union—National Aviator’s Guild.
Meanwhile, PTI reported that pilots of the airline—controlled by Naresh Goyal-- have warned the management of “non-cooperation" over default on payments.
Jet Airways, owned 24% by Etihad Airways of Abu Dhabi, is facing acute cash crunch after posting two straight quarters of losses.
“Withholding salaries, that too without prior notice, is a serious matter and the management will bear sole responsibility for any repercussions," Jet Airways’ pilots informed the management earlier this week, according to PTI. “We would like to advice that failure to address the above points and not paying the salaries on time would lead to non-cooperation by pilots," they warned.
Jet Airways had proposed an up to 25% cut in salaries in late June but was forced to defer the plan following opposition from the pilots’ union and engineers.
“(Earlier) it was agreed that, henceforth, salaries would be paid on time and, if there were to be a delay, the same would be communicated to the pilots well in time," the pilots said. “We are deeply disappointed over both these conditions being violated by the management and the pilot body would be sure to share our disappointment," they said.
The pilots had written to Jet Airways’ chief executive Vinay Dube late last month expressing their displeasure over the “unnecessary" increase in expenditure in the recent times. In the fresh letter, they have also demanded that “all unnecessary positions and committees/ groups created in the last three months be dissolved with immediate effect and the hiring of the expensive expats (vis-a-vis domestic pilots) be stopped forthwith." “We trust you will treat the above with the urgency it deserves and take immediate steps to resolve the situation," they said.
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