Only 50% staff buy Jet's pay cut

Mumbai: A little over half of private carrier Jet Airways’ 13,000 employees have accepted the management’s November offer of a voluntary, graded salary-cut, the airline confirmed today.
The airline’s 750-odd pilots are among those who have declined the proposal. The deadline for the offer ended December 10. Loss-making Jet Airways, the country’s largest airline by market share, was looking at a monthly saving of Rs 5 crore if all its employees accepted the wage cut.
Jet’s annual wage bill is Rs 2,000 crore, 25 per cent of the operating costs. The airline made a loss Rs 384 crore in the second quarter of 2008-9.
The airline declined to say what happens to those who have turned down the pay cut proposal.
The graded salary cut that the airline proposed was for 5, 10 and 25 per cent cuts respectively for employees earning between Rs 75,000 and Rs 2,00,000 a month, Rs 2,00,000 and 5,00,000, and above Rs 5,00,000.
12/12/08 Manisha Singhal/Business Standard

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Categories: Jet Airways Dec 2008