This Tata Company Will Cut Upto 20% Salary Of 40% Employees Till December, 2020
A prominent Tata company has announced that due to the coronavirus impact, they will be forced to cut upto 20% salary of 40% employees.
This salary cut will be valid till December, 2020.
Vistara Will Cut Upto 20% Salary Of 40% Employees
Vistara Airlines, a Tata Group controlled comapny with 51% stake has announced that they will be cutting between 5-20% salary of 40% employees.
Vistara has 4000 employees, and this pay cut will directly impact 1600 employees.
Vistara confirmed that 60% of their employees won’t be impacted by this salary cut.
The CEO of Vistara Airlines will take a 20% cut in the salary.
Which Employees Will Be Impacted?
CEO of Vistara Airlines explained the pay cut being applied for their employees.
- All employees who are in the Level 4 and Level 5 will get 15% cut in salary
- All employees who are in Level 2 and Level 3 will get 10% cut in salary
- 10% cut in salary for all licenses engineers in Level 1C
- 5% cut in salary for all employees in Level 1, who have a monthly salary of Rs 50,000 and above
Via email, Vistara CEO Leslie Thng informed all the employees: “From 1st July, 2020, to 31st December, 2020, I will take a 20 per cent pay cut and we will be implementing a monthly pay cut scheme for staff.”.
No Salary Cut For Pilots, But Allowance Reduced
There shall be no salary cut for the pilots., however, there will be reduction in their allowance.
Till April, all pilots with Vistara were getting base flying allowance, which is a fixed component of their salary, and amounts to 70 hours per month.
CEO said, “For pilots, we will continue with the reduction of monthly base flying allowance to 20 hours for July to December 2020. Allowances will also be adjusted for pilots under certain categories of training,”
Business Impact Is Negative For Vistara
Earlier, all senior employees in Vistara were subjected to compulsory leave without pay for 6 days in April, and then 4 days in May and June.
CEO informed their employees that they are operating at just 30% of their original network, and business outlook for the rest of 2020 looks gloomy.
A spokesperson said, “Vistara is making every effort to save jobs of more than 4,000 of its people while conserving cash and pursuing to reduce operational expenditures, which includes staff costs,”