Pandemic effect: SpiceJet to pay employees based on work hours
With the second wave of Covid-19 severely impacting the aviation sector all over again, low cost carrier SpiceJet has decided to go back to their structure of paying the employees according to their working hours.
In an email sent out to its employees on Sunday, the airline stated that India is currently going through one of the worst Covid-19 outbreaks in the world and passenger traffic has fallen to under 10% of pre-Covid levels.
“Much like last year, the second wave of Covid-19 has hit the Indian aviation industry the hardest, but this time the impact has been much more severe especially on our industry. During this second wave the passenger traffic has fallen to less than 10% as compared to the pre-Covid levels,” read the email.
Effective June 1, the Ministry of Civil Aviation (MoCA) has also capped the capacity for domestic flights from 80% to 50%. Moreover, according to civil aviation regulator Directorate General of Civil Aviation’s (DGCA) latest monthly report, domestic carriers registered 57.25 lakh air travellers in April compared with 78.22 lakh in March.
“This sudden drop due to unprecedented surge in Covid cases coupled with varied travel restrictions across India has adversely affected our revenue and cash flows. It is still unknown whether the cases have peaked-out or the traffic has bottomed-out,” read the email sent by the human resource department of the airline.
Announcing salary cuts, the airline stated, “Under these extreme and unavoidable circumstances which we are currently enduring, the company is reverting to the structure where employees will be paid according to the work hours contributed while maintaining basic thresholds.”
SpiceJet, however, said that salaries of the lowest grade employees will not be deducted.
The email read, “While the salaries for the month of May shall be credited to your bank accounts on 1 June, there will be graded deferment of up to 35% for some of our employees. The deferred amount will be released from second week of June 2021 onwards. Our colleagues in the lowest pay grades will be unaffected by this deferment and their salaries will be paid in full.”
SpiceJet assured its employees that they are making efforts to return to normalcy.