SpiceJet implements up to 30% pay cut for its employees in March
· No job losses
· No pay cut for employees in the lowest pay grades
· CMD opts for the highest salary cut
In its bid to tide over the unprecedented crisis thrust by the COVID-19 pandemic, SpiceJet today announced a company-wide pay cut for its employees for the month of March, 2020. The airline has implemented a 10-30% pay cut for all its employees across top and mid rung levels. SpiceJet has, however, assured that its employees in the lowest pay grades will remain unaffected by the decision. In the wake of the crisis, the airline’s Chairman and Managing Director, Ajay Singh, has decided to opt for the highest cut of 30% in salary.
Unfortunately, due to the lockdown, SpiceJet has been forced to announce ‘leave without pay’ for employees during March 25th-31st, 2020 – the period of the lockdown when all passenger flights were suspended. However, employees who have been actively working during this period like our cargo, ground staff, crew who have flown during this time will not be affected by the ‘leave without pay’ and their salaries for this period will be reimbursed.
The bold measures are in the best interest for everybody at SpiceJet as it aims to sail through the crisis with zero retrenchment.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The COVID-19 pandemic and the subsequent lockdown have forced us to take some tough measures to ensure that no one at SpiceJet is retrenched. What we are facing is a global phenomenon and no airline in the world is immune to the impact. Tough times don’t last, tough people do. SpiceJet was born of adversity and it is the same adversity that brings out the best in each and every one of us.”
India’s aviation industry, reeling from the impact of the global outbreak of COVID-19, is seeking help from the government to mitigate the financial impact of the pandemic. COVID-19 driven lockdowns have adversely impacted the industry leading to significant economic headwinds. Several airline companies, both in India and abroad, have been forced to undertake severe measures in their attempt to survive amidst tough market conditions.