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Kalrock-Jalan prefers to hire new staff for Jet 2.0

Forum Gandhi Mumbai | Updated on August 02, 2021

New promoters say it is cost effective to hire from the market

Jet Airways’ new promoters are in favour of hiring staff from the external market instead of absorbing existing employees.

In a submission made to the National Company Law Tribunal, the Kalrock-Jalan consortium said that facilitating the training and certification of the existing employees “shall incur more costs and it would be more cost-effective to hire trained experts from the market and deploy them on the new fleet.”

The new owners — Kalrock Capital and Murari Lal Jalan — are set to rehire only 50 employees of the asset preservation team.

The consortium said that it could not commit to hiring all or any employees of the existing lot.

At its peak, the company had close to 22,000 employees on its rolls, including 6,000 contract staff. Currently, there are close to 2,800 to 3,000 employees on its rolls.

The consortium asked for complete and uninterrupted flexibility on the same from the NCLT.

Salary correction

There has been substantial salary correction in the last 12+ months in the aviation industry globally due to the Covid-19 pandemic. Jalan-Kalrock said it would like to utilise the current Covid-19 scenario and an “opportunity to scout for more experienced talent available in the aviation industry now (as compared to previous times) and negotiate better salary packages to bring in operational flexibility.”

The new promoters have offered cash and non-cash benefits, including 0.5 per cent equity stake in the airline to those who were on the rolls of Jet Airways till its insolvency in June 2019.

Employees and workmen would be paid ₹11,000 and ₹22,800 respectively along with each of the workmen being given a phone, a laptop, or an iPad on a lottery basis and ticket vouchers worth ₹10,000.

However, this will be executed only if 95 per cent of staff vote in favour of the proposal. In such a scenario, the 0.5 per cent stake reserved for the staff and ₹8 crore allocated for making cash payments to them will be given to financial creditors.

Published on August 02, 2021

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