Friday, April 21, 2017

No salary hike for senior Jet Airways employees this year to ‘stabilise employee cost’

In a move that would discourage its employees, one of the major carriers in India, Jet Airways has decided to freeze annual salary hikes of its senior employees this financial year. This move is expected at the end of the April-March fiscal for at least a quarter. The salary freeze is applicable to all employees in manager grades M3 and above and will be effective from April 1, 2017. As India has become the third-largest domestic aviation market in the world, there is fierce competition among the various airlines like Indigo, SpiceJet, Air India, Vistara, etc. that compete in the aviation space.
The move comes in the backdrop of the stressed financial position of the airline. The freeze on the hike has however been opposed by pilots. The National Aviators’ Guild (NAG), Jet pilots’ association had held its Annual General Meeting (AGM) on March 29 and decided to find ways to protest on the issue. The NAG in a letter said that the pilots of Jet Airways were briefed on the salary increment freeze applicable from April 1, 2017, for a period of three months, after which there will be a review by the management. “The pilots expressed dismay at the anticipated loss of income especially in the current tax environment and the utter disregard of a hard-fought agreement,” a letter sent by NAG was quoted by Economic Times.
The airlines said that the decision of freezing the salaries has been taken as there is an immediate need to stabilise the employee cost. It is applicable to all employees in manager grades M3 and above and will be effective April 1, 2017. “We understand that these measures are difficult and unsettling, but are unavoidable”, the airline’s mail was quoted by TOI.
21/04/17 Sandhya Dangwal/India

0 Comments: