Jet initiates salary reduction talks with employees
24 Nov 2008
New Delhi: Jet Airways, the country's largest private carrier by number of passengers carried, has set a cost reduction exercise in motion asking its top management to consider a 25 per cent cut in salaries to tide over the bad times.
Reportedly, the company is mulling a graded scale-down of salaries, with top management expected to absorb a 25 per cent cut and pilots and engineers a lesser 10 per cent.
Reports suggest employees earning up to Rs5 lakh a month will face a deduction of 5 per cent and those earning more a deduction of 10 per cent. Employees earning less than Rs75,000 per month will remain unaffected.
Chairman Naresh Goyal has set up a five-member member team, led by himself, to explore cost-cutting measures. It is proposed that the company lease out nine aircraft, reduce hotel and entertainment allowances and scrap training allowance for pilots.
Company pilots are reportedly opposed to salary cuts and argue that there are other areas where savings can be made. Reportedly, Goyal has held a meeting with pilots and is now scheduled to meet company flight engineers.
In October, the airline sacked 1,900 employees but was forced to retract its decision amidst high drama.
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