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Jet airways layoff- what kind of hrm?

Coping with Turbulent Times in the Indian

Aviation Industry

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THE CASE

The case is about the retrenchmentdrama that unfolded in one ofIndias leading aviation companies,

Jet Airways (India) Limited in Oct2008.

More than thousand employeeswere laid off.

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v Largest Indian Aviation Industry ($6billion).

v A fleet of 107 Domestic aircraft serving1,009 daily flights.

v 82 International routings.

v Total stren th of 19000 em lo ees.

JET AIRWAYS AS ON OCT2008

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The retrenchment drama unfolds..

Oct 16, 2008, Jet announced that itwould lay off nearly 1,100 of its

staffs to streamline operation.

A day after it had already laid off

around 800 of its cabin crewmembers.

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Retrenchment drama unfolds

Amidst great furor and opposition byvarious organizations and politicalparties, Naresh Goyal , chairman of Jet,

reinstated the employees a day laterthe great emotional drama.

November 2008, Jet decided on a 20%cut in the salaries of its pilots,engineers, and some other staffs.

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Some salient issues

Employees were FIRED with noPRIOR NOTICE

The entire force of unconfirmed

staff was being laid off on a 30-daycompensation package

m n t k ti n nl in t

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Ethical issues

Some most crucial questionsunanswered.

q Where would those 1900 employeesgo?

q Why took action only against lowergrade staffs?

q Senior management was very lessaffected.

q What would be the future of those

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Ethical issues.

q Why did the Jet CEO enter thecompetitive market, instead of playingdown after foreseeing risks?

Some quotes made by higher officials..

"A total of 1,900 people are being served separation notice.800 have already been served notice. In the next few days theothers will also be served notice. It is an attempt to save the jobsof remaining 11,100 employees,

SarojDatta (Exe Director)

It is a difficult decision but we had to take it,

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Some observations..

v The very existence of any company isbecause of its employees.

v Company keeps on focusing oncustomer satisfaction when its ownpeople are so highly dissatisfied.

v Employees are more than just-a-

resource.

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Protest against management

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Points to ponder

No company would know of a risk overnight, its built over a period and thereshould not be any drastic decision

which may endanger its employees. More accountability from top

management.

The role of HR executive is importantto ascertain that peoples interests arenot left aside in the race for profits

The HR executive to ensure no

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THANKYOU