Jet Airways- IRLL

8/7/2019 Jet Airways- IRLL

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With 66 destinations, we connect aplace every 5 minutes..

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JET AIRWAYS : established on 1st April

1992

Largest private airlines of India

Chairman : Naresh Goyal

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Trade Unions and IndiasLabor Conundrum


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August 2009 : Formation of National AviatorsGuild (NAG)

July 2009 : Termination of D. Balaram and SamThomas (two senior pilots) without proper

explanation.

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NAG says

Reason: Pilots active participation in

the formation of the union.

Constitutional right to form a union.

August 22, 2009: A strike notice fromNAG to management and laborcommissioner

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The pilots were sacked because they formedthe guild. The guild is not illegal and is

registered with the labor commissioner's office.

Our only demand is they take two pilots back.Otherwise, there will be indefinite strike.

- Girish Kaushik(President of NAG)

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August 31, 2009: Labor Commissioner

- Conciliation meeting

- Asked management to come with asatisfactory reply by Sept.

7, 2009.- Asked employees not to go on

strike when the talks are on.

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No favorable move from management- pilots wenton strike, but in legally acceptable way. Thatwas

MASSIVE SICK LEAVE

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High chaos in airports..

Naresh Goyal

(Chairman- JetA

irways)blamed the pilots.

They are behaving like terrorist. Theycannot hold the country, passengers and theairline hostage.

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Management sacked two more pilots

Sept. 9, 2009: nine centralT

Us extendedtheir support

{ HMS, CITU, BMS, AITUC, INTUC, AIUTUC, UTUC,

AICCTU, Self Employed Womens Association}

5 days

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Loss of last quarter : INR 225.3 cr On strike days : loss of INR 20 cr. (avg)

30% drop in the ticket booking

After : - Revenue reduction of $8 mn

- Passengers from 23000 to 7500per day

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Bad publicity, cancelled flights, angry andupset passengers.

Indias largest private sector airline has adebt of INR 16,000 cr.

Management agreed to take back the

dismissed pilots on board

Consultative group to resolve the issues.

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IR actorsEmployer: sacked pilots, no response

Employee: notice of strike, sick leave

Government: high court order and laborcommission- strike illegal

Manifestation: notice of strike

Cause of dispute: retrenchments

Method of solving: conciliation

- internal policies (expats)

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Dunlopes model

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REASONS FOR JOINING TU : Changingscenario

Knowledge workers-difficult to deal

-aware about rights and laws

-essential for the organization

Importance of communication1/29/2011 15


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Linkage between IR and HR.

-foreign mgmt. (IHRM)

-culture and historical background

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Indias age old labor laws- fragile enoughto control the labor unions.

Strike during conciliation- a punishableoffence

mass sickness pilots used the loopholes

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Pilots disrupting an essential services Management accused of discrimination

BUT NO ACTION TAKEN AGAINST THEM

Indian Labor Laws power to unions

(tremendous increase in the no. of unregistered

unions that have nothing to do with the interest ofthe organization)

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Many common items are differently indifferent acts. (Also PM of India commits

about overlapping provisions)

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Labor unions demands and competitivefield of business

Increase in the contract labor reducedunion activities

High inflexibility due to the nature of the

labor laws ( 50- central acts, more than150 state variance)

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Alarming increase in lost work days

Jobless economic growth (labor force growthrate: 2.5%, employment growth: 2.3%)

Inspector Raj in the industry ( Indian factoryinspected by 30 inspectors on an average)

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The time has come for us to take stock ofour labor laws and see how best we can infact serve the interest of our working

people- Dr. Manmohan Singh

Second Labor Commission 1998 to suggest

rationalization of existing laws relating tolabor in the organized sector.

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Sept. 2009, IT and ITES establishments

exempted from the provision of IndustrialEmployment Act 1946.

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Reforms are happening but not atexpected scale and level..

India would struggle to find the growth of

it does not give importance to laborreforms.

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Documents

Jet Airways- IRLL