Moneycontrol PRO
you are here: HomeNewsBusiness

Cannot commit re-employment to every employee: Jalan Kalrock Consortium tells Jet Airways staff

There are over 3,500 employees who have remained at Jet Airways even after it was grounded two years ago, in the hopes that they will be re-employed once the airline flies again.

July 30, 2021 / 03:19 PM IST
A Jet Airways employee holds up a placard during a protest demanding to

A Jet Airways employee holds up a placard during a protest demanding to "save Jet Airways" at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, May 8, 2019. REUTERS/Francis Mascarenhas - RC1F3FED5C00


Just a day after a group of Jet Airways staff sought intervention of Civil Aviation Minister Jyotiraditya Scindia in addressing their issues with respect to the resolution plan of the Jalan Kalrock Consortium, the consortium in a statement told the airline's staff it won't be able to re-employ all of them.

The consortium of Kalrock Capital and businessman Murari Lal Jalan, the new owners of Jet Airways, said that while it will start meeting them to determine roles for them in the new organisation, it cannot commit re-employment to all of them.

“In the coming days, we intend engaging with many of you to ascertain the role you can play in years to come, in our effort to create history, when Jet Airways becomes airborne again. We cannot commit re-employment to each of you, but can surely say that this company belongs to you and right now, it is not in the interest of your airline to onboard everyone,” the consortium said in a statement.

The consortium added that it may look to hire everyone back in the airline in coming years, but there will be many factors at play.

“The decisions on selection would encompass receipt of regulatory approvals, type of aircraft we deploy, destinations to be served, number of slots we ultimately get, start date etc.,” the consortium said.

Close

In a letter to the civil aviation minister earlier this week, the All India Jet Airways' Officers & Staff Association had requested him to take up their issues with the representatives of the consortium.

Payment of all social security dues such as provident fund and gratuity, and assurance of employment to existing employees on the payroll are among their demands.
There were over 3,500 employees who have remained at Jet Airways even after it was grounded two years ago, in the hopes that they will be re-employed once the airline flies again.


In June this year, the National Company Law Tribunal (NCLT) approved the resolution plan submitted by the Kalrock-Jalan consortium for the airline.

The employees of the defunct airlines had in the NCLT claimed Rs 1,265 crore, the consortium had earmarked only Rs 52 crore towards settling their claims.


Jalan Kalrock Consortium offered compensation which would include cash payments of Rs 11,000 to employees and Rs 22,800 to workmen. Furthermore, workmen would be given either a smartphone or a laptop or an iPad out of the existing assets of the now grounded Jet Airways.


The proposal also includes a 0.5 percent equity stake in the airline for all employees and workmen of Jet Airways and Rs 10,000 credits for future tickets to each ex-employee of Jet Airways 1.0.


A welfare trust will be formed of all the employees, and the consortium will transfer 0.5 percent stake in the airline to this trust, apart from 76 percent stake in its ground handling subsidiary.




Around 95 percent of the employees of Jet Airways are yet to accept the consortium’s proposal.




Moneycontrol News
first published: Jul 30, 2021 02:54 pm
Sections
ISO 27001 - BSI Assurance Mark