Jet proposes 5-10 per cent salary cut for employees, VRS

Mumbai, Nov 23 (PTI) Facing the heat of economic slodown, the Jet Airways management was Sunday understood to have suggested a five to ten percent salary cut for its employees drawing monthly salary above Rs 75,000 and a voluntary retirement scheme for older staff.

A meeting of the management, presided by Jet Chairman
Naresh Goyal at a five-star hotel here, has decided to have a
graded salary structure for all employees but kept a threshold
for it saying those drawing Rs 75,000 per month would not face
any cut in their salary, sources said.

The graded structure would be applicable to those getting
above Rs 75,000 per month, they said.

The management is also understood to have set up a
committee to study the graded structure.

However, the management was unable to convince its
domestic pilots to accept salary cuts ranging from 10 to 20
percent, sources said.

The airlines management is understood to have suggested
a ten percent slash in pay packets of junior pilots and a 20
percent cut for senior pilots.

But the pilots suggested that Airlines should do away
with the expatriate pilots as they were a "huge burden" on the
airlines because of their high salary packages," a source
close to the development told PTI.

The Airlines has currently 1,000 pilots with 200 expat
pilots.

A proposal was also mooted to provide Voluntary
Retirement Service (VRS) to some of the older employees to cut
cost, the source said.

"However, Goyal did not accept the proposal, saying the
Airlines did not have money to offer such a package," the
source said. PTI IAS