Jet Airways have decided for a future paycut in the employees’ salary from 5% to 25% depending on their annual incomes. This step has been taken by the company in order to reduce the expenditure by a good margin and also cope with the falling profits along with the rising operational expenses. The latest airline to feel the pinch of rising crude prices and falling rupee value is Jet Airways.
This is a decent step if you think in terms of the goodwill and profit improvement of the company. But is it also righteous and ethical in terms of the employees? Aren’t their needs have to be catered to? Isn’t it unethical to recruit someone at a particular pay scale and then cut their salaries? Is this decision justified in terms of every person related to this decision is the big question here.
The falling rupee value and soaring crude prices in the international market have forced the company to take this step. As part of its cost rationalisation measures, the airline continues to evaluate all initiatives to achieve greater business efficiencies. Payroll is one of the important components of cost structure and the senior leadership has undertaken a reduction in salary to lead by example. Although this step hasn't been taken well by the the pilots and the engineers and the sector is facing shortage of pilots specifically commanders. Even the union has warned all the employees from accepting the salary cut.
This step can be successful if it is implemented on the newly recruited by offering them a lower salary from the beginning and even the Public Sector Units should follow in their footsteps but cutting their salary after they are have been paid a larger amount is not the best idea ever. Companies like these are a joint unit with thousands of employees and the stakeholders should not be the only one benefiting from them.
Share your comments
No comments:
Post a Comment