GoAir yet to clear final salary settlement of 500 ex-employees

Mumbai: GoAir, the Wadia Group promoted no-frill airline, is yet to clear the final salary settlement of its 500 ex-employees, 300 of whom were asked to leave between May and September.
The employees were laid-off as the airline struggled to cope with a severe cash crunch, company sources said. The employees who were retrenched included pilots, cabin crew, ground handling staff and area sales managers.
The salary dues add up to Rs 80,000 to Rs 10 lakh for each employee, depending on their position. “GoAir is delaying our dues since the last six months,” said an ex-employee. “When we approach for our dues, the HR people don’t respond properly,” he added.
In an e-mail reply to ET, the company said: “GoAir started the pruning process 8-10 months ago. The compensation for the employees who left the organisation has been paid over time and the process is still ongoing. In all, there are only 140 employees who need to be compensated, the process for which has already begun and they will receive their compensation shortly.”
The airline had halved its operations to 800 flights and had laid off over 300 employees between May and September. Later, more than 200 employees resigned and switched to other carriers.
Surprisingly, GoAir has decided to scale up its fleet size to 35 aircraft by March 2011 from the existing six in two tranches. It will add 20 aircraft this year and bring in another nine in the next two years.
24/12/08 Mithun Roy/Economic Times

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Categories: GoAir Dec 2008