Indigo Will Cut Salaries Via ‘Leave Without Pay’ For 3 Months; All Employees Will Be Impacted?
Unfortunately, we report to you another news of salaries of employees being slashed, and this time, it is India’s largest airline, IndiGo.
The airline has reported that there will be pay cuts for senior employees and they will also be implementing a without pay leave programme for their employees.
Why is IndiGo implementing these pay cuts? Read on to find out!
IndiGo Airlines Announce Pay Cut And Without Pay Leave Programme For Employees
The lockdown has declined the profits and the income of transportation modes, including railways and airplanes. This has led to the employees working with them to face the ax.
Indigo CEO Rononjoy Dutta wrote an email to the employees explaining the decision. He says that the situation has left them with no other option but to implement pay cuts in the month of May. He also mentioned that there will be limited and a graded leave without pay program for the next three months, May, June, and July.
The leave without pay will be ranged across 1.5-5 days, depending on the group of employees. The Level A employees that make up for the workforce of the company will not be impacted.
Dutta said, “Given the gradual build-up of capacity, I am afraid we have to take the additional painful step of implementing a limited, graded leave-without-pay programme for the months of May, June and July.”
Pays To Be Cut From The Month Of May; Other Airlines To Follow Suit
IndiGo revealed that they have paid the employees’ salaries in full for the months of March and April, it wont be continued from the month of May.
About restarting operations, 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.”
The other airlines, SpiceJet, GoAir, AirAsia India, Vistara, and Air India, besides IndiGo, are also implementing similar measures in their organizations, such as slashing the pays of their employees or sending them on leave without paying them.
The Indian Airlines are facing a huge hole in their pockets due to the suspension of operations, due to the Coronavirus spreading rapidly without a sign of stopping. In fact, the aviation industry, which includes airport firms, ground handling companies, and airport retailers is expected to report losses of $3-3.6 billion in the June quarter.