Confusion prevails over whether Kingfisher Airlines’ offer to pay three months’ salary by Diwali has been accepted by the employees. The three-month pay offer was made at a meeting in Mumbai. The airline, which saw its operating licence being suspended on October 20, has not paid its employees for the last seven months.

While a section of the employees said that a majority in Chennai, Bangalore and Mumbai had accepted the three-month offer, some others said it had been rejected. In Delhi, too, the offer is said to have been accepted by some employees. Fearing that the management may go back on its words, employees are said to be insisting that they be paid back salaries at one go. In the absence of a union, it is difficult to get specific information on the exact situation on the salary front. Airline officials declined to comment on the matter.

On the NSE, the Kingfisher stock was down 4.61 per cent, or 50 paise, to Rs 10.35.

CEO’s mail

The airline’s Chief Executive Officer, Sanjay Aggarwal, has sent a mail to the employees asking those who accept the three-month offer to confirm thus: “I shall be reporting to work effective October 26, 2012. I assure you that I would adhere to my duties in a manner that does not cause any further disruptions of our operations.”

The mail adds that salaries for June to September will be paid when the company is recapitalised upon equity infusion. “Commencing December, we will pay salaries in 30-day arrears, on a monthly basis. To clarify, October 2012 salary will be paid by fourth week of December 2012, November 2012 salary will be paid by the fourth week of January 2013, and so on,” the mail says.

(This article was published on October 23, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.