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Indigo to cut salaries through 'leave without pay' programme for three months starting May

Indigo CEO Ronojoy Dutta said Leave without pay will range from 1.5-5 days depending on the employee group. Level A employees, who form a majority of our workforce will not be impacted.

May 08, 2020 / 10:23 AM IST
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After going back and forth with regard to its policy regarding pay cuts for the month of April, Indigo has finally announced pay cuts for its employees under a 'limited, graded leave without pay program for the months of May, June and July.

Indigo CEO Rononjoy Dutta in a mail to employees, said, "No option but to implement pay-cuts from the month of May. Have to implement limited, graded leave without pay program for May, June & July."

He added, "Leave without pay will range from 1.5-5 days depending on the employee group. Level A employees, who form a majority of our workforce will not be impacted."

Earlier in April, the company had rolled back its salary cut announcements that were made in March after the government appealed companies not to cut salaries during lockdown.

Apart from IndiGo, all its peers such as SpiceJet and GoAir, have either cut salaries or have sent a major part of their staff on leave without pay. The airlines have been facing a severe cash crunch, because of the disruption caused by COVID-19. Both, domestic and international, flight have been suspended since the beginning of the lockdown, in March.


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Underlining that the airline's operations have been grounded since March 25, when the lockdown came into effect, Dutta said, "As and when we resume operations it is likely that the airline will start with a much lower capacity initially and gradually build up capacity in succeeding months."

He added:

"While we have paid employee salaries in all for the months of March and April, I am afraid that we are left with no option but to implement the originally announced pay-cuts from the month of May."

This is a developing story. Please check back for updates.
Moneycontrol News
first published: May 8, 2020 09:27 am

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