Jet puts loyalty bonus on hold

Mumbai: True to Naresh Goyal’s warning, pay cuts have started big time at Jet Airways and the message is clear: take it or leave it.
Over 1,500 pilots and engineers have had their retention bonus “deferred” in October, said a source in the airline. A retention bonus is paid to an employee for staying put with a company and not hopping jobs.
“It was introduced at the height of the aviation boom two years ago when pilots and trained engineers were in great demand and supply was short..,” said a senior Jet Airways human resource official.
With most airlines pruning the number of flights, there will be more commanders and fewer planes to fly. None of the 1,000 engineers who has had to give up the monthly retention bonus has quit or been able to find a job with another airline.
“I draw a monthly retention bonus of Rs 25,000. It did not come this month. Neither for me nor for any of my colleagues. It is not the same for everyone though, as it depends on the scale, etc. We are trying to figure out how to respond,” said a maintenance engineer.
The Jet HR official, however, said the retention bonus had not been cut permanently, only its payment had been deferred.
The non-managerial staff — cabin crew, baggage handlers and those in non-operational jobs — however, have not had to give up their retention bonus either.
Jet has decided to terminate contracts of about 35 expatriate pilots, who are paid at least 40 per cent more than their Indian counterparts. A foreign commander usually earns about Rs 5 lakh a month.
07/11/08 The Telegraph

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Categories: Jet Airways Nov 2008