Having laid off its expat pilots recently and imposed pay cuts following the dip in business in the aviation sector due to the pandemic-like situation worldwide, GoAir has now put into place other cost-cutting measures. It had already asked its employees to go on leave without pay on a rotational basis.
Vinay Dube, CEO, GoAir, conveyed to the employees on April 1 that a part of their March salary has been deferred to April. He informed them that those employees in Grade D and below have been paid their total salary, without any deductions. However, the remaining staff will have to take a pay cut and a part of their salary will be deferred to April.
It is not only GoAir that is imposing pay cuts, other airlines have also deducted the salaries of their staff.
IndiGo is deducting up to 25 per cent from the salaries of its senior employees, while Vistara announced a compulsory leave without pay of up to three days for its senior employees in March.
SpiceJet announced a 10 to 30 per cent deduction in salaries and Air India imposed a 10 per cent cut in allowances for all employee, except cabin crew, till June.
While conveying the news about pay cuts last month, Dube had empathised with the workforce and let them know that the decision was a painful one, but inevitable, given the crisis situation. He assured the employees that the move was required to protect their employment in the longer term.