Friday, August 20, 2021

Jet Airways staff unions challenge resolution plan, file appeal in NCLAT

Mumbai: Jet Airways employees have rejected the Kalrock-Jalan consortium’s offer under the resolution plan and have challenged the plan in the National Company Law Appellate Tribunal.

Bharatiya Kamgar Sena (BKS) and Jet Airways Cabin Crew Association, on Wednesday, filed an appeal against the National Company Law Tribunal’s June 22 order approving the resolution plan. The unions said the resolution plan fails to protect workers’ interests and violates labour laws.

While Jet Airways had admitted claims of around Rs 15,000 crore, the consortium offered to settle claims of Rs 475 crore of financial and non-financial creditors. Employee claims worth Rs 1,265 crore were admitted and the consortium proposed Rs 52 crore to settle them.

Additionally, for the employees and workmen the consortium offered cash and non cash benefits including 0.5 per cent equity stake in the airline to those who were on the rolls of the company when it went into insolvency in June 2019. These benefits would be shared only if 95 per cent of employees give their consent.

However, of the 8,973 eligible employees only 35.1 per cent voted in favour of the offer while 61.6 per cent abstained from voting. As a consequence, the proposal has lapsed, the consortium informed employees today.

Meanwhile in their plea, BKS and the cabin crew union said the core principle of the Insolvency and Bankruptcy Code is to protect the interests of all stakeholders but the resolution plan does not protect workers’ interest and instead jeopardizes them.

20/08/21 Aneesh Phadnis/Business Standard

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


Post a Comment