Jet Airways on Sunday proposed a five to 25 per cent cut in the salaries and allowances of its employees, to tide over the current financial crisis.
A day after saying that there would be no cut in airfares at the HT Leadership Summit in New Delhi, Jet Airways Chairman Naresh Goyal met his top management officials in Mumbai on Sunday and decided on salary cuts.
This is not the company’s first attempt at cost-cutting. A little over a month ago, Jet Airways had given the pink slip to 850 employees, only to take them in 48 hours following nation-wide protests.
The paycuts will apply to the airline’s technical and commercial (marketing and sales) staff, as well as to pilots. “It has been proposed that there will be no salary cuts for employees whose monthly pay is less than Rs 75,000,” a senior official told Hindustan Times, on condition of anonymity. But those who earn less than Rs 75,000 a month will see cuts in their allowances.
Despite repeated phone calls and SMS, Jet Airways officials were not available for comment.
For those who earn between Rs 75,000 and Rs 2 lakh a month, the cut is five per cent; between Rs 2 lakh and 5 lakh it’s 10 per cent and it’s 20 per cent for staffers who earn over Rs 5 lakh.
Jet Airways has over 13,000 employees on its payroll and a monthly salary bill of over Rs 100 crore. Around 3,000 Jet staffers will be affected by the proposed salary cuts.
While pilots will take a 20 per cent cut, the top management – which includes 25 officials - will lose 25 per cent. The meeting, held at a hotel in Powai, was also attended by pilots’ representatives, who have vehemently opposed the cut in salary. According to sources, pilots said they would not accept the cut until all expensive expat pilots are asked to leave. Another meeting will be held to finalise the matter. The new salary structure will be announced in a couple of days.
The company is also said to be considering voluntary retirement schemes for its older employees.