Jet Airways employees have arrears of salaries worth lakhs. Under the resolution plan, the new owners of the jet have spoken of paying the dues of 23 thousand to the workers. The union has expressed displeasure over this.
Jet Airways employees salary dispute
The bankrupt company Jet Airways owes each employee a salary of around Rs 3 to 85 lakh. After Airways was bought by Kalrock-Jalan as part of the resolution process, employees were hopeful that their ‘achche din’ would come soon. But still the screw of salary is stuck. Under the revival plan, the new owners have proposed a payment of around Rs 23,000 to each employee of Jet. All India Jet Airways Officers and Employees Union has expressed displeasure over this plan of paying thousands of rupees instead of lakhs.
Union president Kiran Pavaskar says, “Jet has asked employees to vote yes or no for the NCLT-approved scheme, but hardly the total dues are being paid to each employee under the scheme. It offers around 0.5% of the total dues, which is as good as zero. This will not give much benefit to the employees. “
He told in an interview to TOI that if the problem is not resolved, he will challenge it in court. In this connection, the association has recently sent a letter to the new Civil Aviation Minister, Labor Minister and Regional Labor Commissioner. It read, “A very nominal amount has been proposed as a solution plan. In this tenure of 26 years of the company, many have worked for the longest time of their life. But they have not got their due.”
Salary arrears of lakhs of employees
Jet Airways owes its creditors an undisputed Rs 15,400 crore, out of which Rs 1,254 crore is owed to its employees including salary dues. According to a news report, an employee of Jet claims that the company owes about Rs 85 to each commander and about Rs 3 lakh to the lowest paid employee. In such a situation, the employees are suffering a lot under the resolution plan.
Kalrock-Jalan is now the new owner of Jet
Jet Airways was considered to be the oldest and largest private airline in India. It was closed in the year 2019 after a severe shortage of funds. At that time, the SBI-led consortium was referred to the NCLT for resolution under the Insolvency Code. During this time the slots of Airways were allotted to other airlines. Jet Airways was bought by Kalrock-Jalan in the year 2020. As per the resolution plan, the Kalrock-Jalan consortium plans to expand it within 5 years.
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