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Jet Airways Staff Group Flags Concerns; Seeks Clarity on Airline Problems

In a letter to the CEO, the association has also complained that the management was wasting financial resources on "inefficient" operations and hiring of foreign pilots.


Updated:August 26, 2018, 9:07 PM IST
Jet Airways Staff Group Flags Concerns; Seeks Clarity on Airline Problems
Representative image/Reuters
Mumbai: Amid Jet Airways battling financial problems and coming under the regulatory scanner, an employees' union of the airline has sought clarity from the management on the issues that have led to the current situation.

Flagging concerns, the Jet Airways Staff and Officers' Association, which claims to have around 10,000 members, has written to CEO Vinay Dube seeking a meeting with him to have a comprehensive understanding of the factors.

In a letter to the CEO, the association has also complained that the management was wasting financial resources on "inefficient" operations and hiring of foreign pilots.

The letter, written last week, comes against the backdrop of the crisis-hit airline deferring announcement of June quarter results, exploring cost-reduction ways, coming under the regulatory lens for alleged corporate governance lapses and talks of a possible pay cut for the employees.

Meanwhile, aviation regulator DGCA is to start safety audit of the airline tomorrow, sources said.

The board of the full-service carrier is scheduled to consider the June quarter results tomorrow where there would also be discussions on cost-reduction ways and turnaround plan.

The association does not represent Jet Airways' pilots, engineers and cabin crews since these categories of staff have separate unions.

"We are concerned for our members who are employed in the staff and officers category across the country in respect of their service conditions, salary and wage enhancement and conditions of service which have been brought to your notice vide our charter of demands to finalise a settlement," the association said.

A response was awaited from an airline spokesperson on the queries about the letter.

Stating that Dube failed to meet the association's representatives after giving an appointment for a meeting on August 10, the grouping said it is awaiting the schedule of the meeting with the management team to put across concerns and grievances.

The association has also raised serious concerns about media reports and social media messages "relating to the insolvency of the company, concerns of violations of law, Sebi investigation into fraudulent transactions and other management actions".

According to the letter, employees have not been able to get their due from the management all these 25 years while it is unfortunate that the company has squandered large sums of money on inefficient operations, expats' induction, unwanted expenditure, among others.

"We also notice complaints that have come about malpractices in hiring employees for non-aviation related work. We will be happy to discuss these issues with you," the letter said.

Further, the association has suggested that the CEO should have discussions with the HR department on all the pending issues in the last three years.

This is for a "comprehensive understanding of the failure of the company in meeting the basic requirement of employees and the delay in resolutions of pending legal matters", it added.

"Our members have shown utmost restraint in the last few months... and any delay in resolution of the subject matter will not be in the interest of the company," the association said.

Meanwhile, a senior Corporate Affairs Ministry official said the Registrar of Companies (RoC) has asked for details from the airline about certain issues and that the process is going on.

To a query on whether the airline has received queries from the RoC regarding financial issues and delay in announcement of quarterly results, a Jet Airways spokesperson said "it has not received anything in this regard".

Information has also been sought from the airline's auditors against the backdrop of the airline deferring the announcement of June quarter results, he added.

Markets regulator Sebi is also looking into the airline delaying June quarter results after the carrier's audit committee expressed reservations, sources said earlier this month.

The board of Jet Airways would consider cost reduction initiatives and turnaround plan along with June quarter results at its meeting on August 27.

The board, on August 9, deferred announcement of unaudited financial results for the June quarter.
| Edited by: Padmaja Venkataraman
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