The aviation industry has been witnessing tough times over rising competition, adverse effect of foreign exchange and high fuel prices to name a few. And all these factors are, in turn, affecting airline employees and their compensation. After missing out on the September 26 deadline, Jet Airways has now assured its pilots that their August salaries would be credited by October 9.
The date was finalised after a meeting between the management of Jet Airways and the National Aviator's Guild, which is its domestic pilots' union. "Management has committed that 25 per cent balance amount of August salary will be paid on Tuesday," the Press Trust of India quoted a source as saying.
Earlier, the full-service airline had told its senior management, engineers and pilots that they would receive their salaries in two installments until November. In tune, the August salaries were also set to be paid in two installments – one by September 11 and another by September 26. While the first installment was paid on time, the second one had been delayed.
The two parties have also decided to meet on October 9 to discuss other issues. "No other issues were discussed today due paucity of time," the source added.
In August, it was reported that Jet Airways had informed its staffers that they would have to take a pay cut of up to 25 percent. It was said that the percentage would depend on the earnings of the employees and range from 5 percent for those who earn about Rs 12 lakh per annum to 25 percent for those who earn Rs 1 crore and more a year.
"As part of its cost rationalisation measures, the airline continues to evaluate all initiatives to achieve greater business efficiencies. Payroll is one of the important components of cost structure and the senior leadership has undertaken a reduction in salary to lead by example," the Economic Times had quoted the airline as saying in a statement.
However, Jet later refuted these reports and labeled them not just "factually incorrect, but also malicious."
Jet Airways chief executive officer Vinay Dube on Friday, August 3, said that the carrier wasn't facing issues and was consistently taking up several measures to cut costs without affecting the employees.
"The dialogue with employees has been to apprise them of the challenges being faced by the aviation sector in India and by the Company in particular, with an intent to enlist their full support and cooperation for realising necessary savings across all business functions," NDTV quoted chief executive officer Vinay Dube as saying.