Mumbai: Jet Airways’ top management is expected to face tough times as it meets pilots on Wednesday and Thursday to negotiate salary cuts of around 15% with a reduction in leaves.
Jet’s CEO Vinay Dube, along with EVP flight operations & engineering Nikhil Vaid and chief people officer Rahul Taneja, will be addressing the pilots in Mumbai and Delhi first, followed by an open house to discuss the proposed salary cut with the representatives of the National Aviation Guild (NAG), Jet’s pilot union.
Jet has about 2,000 pilots in its 16,000-strong workforce and according to sources, the pilots are in no mood to agree to the management’s proposal of salary reduction. “If pilot salaries are touched there will be repercussions. The management needs to find alternate means, asking pilots to take a salary cut will not be acceptable,” said a senior pilot.
There is a reason why the Jet management is worried about the employee costs and why Jet wants to reduce its manpower spend. Jet Airways , the second largest airline by market share (around 14%), has not posted a profit for the past 11 years, barring FY16 and FY17, but its employee costs have been on the rise. For example in FY18, the airline incurred Rs 3174.22 crore in employee costs, up from the Rs 3084.21 of FY17, which in itself was a big jump from the Rs 2,532.33 of FY16. In FY17 alone, employee costs shot up by a big margin of 21.79%.
02/08/18 Financial Express
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Jet’s CEO Vinay Dube, along with EVP flight operations & engineering Nikhil Vaid and chief people officer Rahul Taneja, will be addressing the pilots in Mumbai and Delhi first, followed by an open house to discuss the proposed salary cut with the representatives of the National Aviation Guild (NAG), Jet’s pilot union.
Jet has about 2,000 pilots in its 16,000-strong workforce and according to sources, the pilots are in no mood to agree to the management’s proposal of salary reduction. “If pilot salaries are touched there will be repercussions. The management needs to find alternate means, asking pilots to take a salary cut will not be acceptable,” said a senior pilot.
There is a reason why the Jet management is worried about the employee costs and why Jet wants to reduce its manpower spend. Jet Airways , the second largest airline by market share (around 14%), has not posted a profit for the past 11 years, barring FY16 and FY17, but its employee costs have been on the rise. For example in FY18, the airline incurred Rs 3174.22 crore in employee costs, up from the Rs 3084.21 of FY17, which in itself was a big jump from the Rs 2,532.33 of FY16. In FY17 alone, employee costs shot up by a big margin of 21.79%.
02/08/18 Financial Express
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