Tuesday, August 03, 2021

Jet staff to get 8% of Rs 1,254 crore dues, 50 of 4,000 employees to be retained

Mumbai: The employees of erstwhile Jet Airways will receive about eight percentage of the total sum owed to them by the airline, according to a response sent recently by the airline’s new owners Kalrock-Jalan consortium to queries raised by the employees. The consortium also clarified that out of the four-thousand odd staffers who remained with Jet for over two years after it suspended operations, only 50 will be retained in Jet 2.0. The employment prospects of the remaining staffers would be rather slim.

The consortium said that the estimated liquidation value -- the estimated realizable value of Jet Airways 1.0 assets on the insolvency commencement date -- owed to the erstwhile Jet Airways workers and employees is about Rs 100 crore. That is about 8 % of the Rs 1254 crore accepted claims Jet owes to its staffers towards payment of provident fund, gratuity, leave encashment and about six months' salary. ``So for instance: a loader, with unpaid dues worth, say, Rs 5 lakh will be paid Rs 40,000. He will also be left jobless,’’ said a Jet staffer, requesting anonymity. The resolution plan, approved by the National Company Law Tribunal (NCLT) on June 22 had mentioned a sum of Rs 52 crore as payment towards staffers dues. Over and above this, whatever would be left of the liquidation value owed to the staff will be paid to them on a priority basis, the plan had said.

But what has hit the Jet staff most is the very real prospects of being jobless. A total of 3,796 staffers hadn’t resigned and had stayed put the airline, hoping to be a part of the revival, said a Jet source, requesting anonymity. Under the resolution plan, only 50 will be retained in Jet 2.0 and the remaining staffers will be `demerged’ into a yet to be formed ground handling subsidiary called Airjet Ground Services Ltd (AGSL). Jet will offer 76% of its shareholding in AGSL to the employees Trust (not formed yet) and retain the remaining 24% shareholding. But if the Trust refuses to accept the offer or challenges the implementation of this resolution plan, ``then Jet will retain 100% shareholding in AGSL and deal with AGSL in such manner as deemed appropriate by it, without any interference of any other person,” the consortium said.

03/08/21 Manju V/Times of India

To Read the News in full at Source, Click the Headline


Post a Comment