Jet Airways asks employees to take up to 25% pay cut, pilots’ union rejects demand: Reports
Meanwhile, the airline has reportedly approached investment bankers to help sell a stake.
Private airline Jet Airways on Thursday said it has asked its employees to take a pay cut of up to 25%, PTI reported. The airline said it was holding talks with employees and shareholders to create a “healthier and a more resilient business”.
“Jet Airways has been implementing several measures to help it reduce cost as well as realise higher revenues for desired business efficiencies,” the airline said in a statement according to IANS. “Some of these include sales and distribution, payroll and maintenance, among many others. As part of this approach, the airline management is in dialogue with key stakeholders to enlist their full support and cooperation for realising necessary savings across all parts of the business.”
However, the National Aviators Guild, the Jet Airways pilots union, has asked the employees not to accept the management’s decision of a pay cut, Mint reported. “The management doesn’t seem to be in the favour of negotiating with the union on this issue,” an unidentified union leader said.
“This move could backfire on the airline as senior pilots and captains are in demand in the industry, and many may leave the airline if the management decides to stick with its salary cut plans,” a pilot said. Jet Airways Chairperson Naresh Goyal, Chief Executive Officer Vinay Dube, Deputy Chief Executive Officer Amit Aggarwal, and Chief People Officer Rahul Taneja had earlier this week met the airline’s senior employees to discuss the salary cuts.
Meanwhile, the airline has approached investment bankers to help sell a stake, Mint reported citing sources. Jet Airways, in which Goyal has a 51% stake, reported a loss of Rs 636.45 crore in the financial year ended March 31.