Jet Airways asks employees to accept salary cut

Naresh GoyalMumbai: The top management of Jet Airways, led by its chairman Naresh Goyal, has taken a voluntary pay cut of 25 per cent, effective 8 December.

This essentially means employees earning a gross salary of over Rs75,000 a month will take a graduated wage cut over the next 12 months. Pilots will have to take a combination of wage cut and allowance rationalisation, to bring the contribution of pilots in line with the company's other employees, the airline said.

Indian pilots, however, asked the airline to lay-off 240 expatriate pilots, who earn 50 per cent more than their Indian counterparts.

Now in a letter to employees on Tuesday Goyal has suggested wage cuts next year for those employees whose gross salary is at least Rs75,000 a month.
Goyal described the move as ''tough measures for tough times.''

In the letter Goyal said that the airway's top management has already volunteered a 25 per cent cut in salary effective from December. A Jet spokesperson confirmed Goyal wrote the letter.

''I am confident that you will also accept this is in best interests of the company and its continued operations-and continued employment-of all the employees,'' Goyal wrote.