Jet employees in a fix over new revival plan

Wednesday 14th July 2021 08:23 EDT
 
 

Defunct Jet Airways owes each of its employees anywhere between Rs 300,000 to Rs 85,00,000 as per the claims admitted under the insolvency resolution process. The revival plan, submitted by its new owners Kalrock-Jalan, proposes a payment of about Rs 23,000 to each employee. Under the resolution plan, which was cleared recently by the National Company Law Tribunal (NCLT), the payment would be made only if 95% of Jet employees give their acceptance to the plan within the next three months. But with no word in the NCLT order even on statutory dues like gratuity and with no clarity on their pending dues, Jet Airways employees have found themselves in a fix.

Kiran Pawaskar, president, All India Jet Airways Officers and Staff Association, said, “Jet has asked employees to cast a vote, either a yes or no, to the plan cleared by NCLT. But the plan hardly offers about 0.5% of the total sum owed to each employee. It is as good as zero,” said Kiran. “If the issue isn’t resolved, we will challenge this in the court.” The association sent a letter recently to the new civil aviation minister, labour minister and regional labour commissioner. “On preliminary perusal of the resolution plan we found no reference to the claims of the employees. A very paltry amount has been proposed as a resolution in the insolvency and bankruptcy process. The company over its 26 years of existence has a large work force and many of them have worked for long parts of their lives,” it said.

Jet Airways owes an undisputed sum of £1.54 billion to its creditors, out of which £125.4 million is owed to its workers and employees in the form of unpaid salaries, gratuity etc. A Jet staffer said, “Jet owes each commander about Rs 85,00,000 and about Rs 300,000 to the lowest paid employee. The quantum that the workers stand to lose under the resolution plan is shocking.”


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