SpiceJet’s engineering staff have called off their strike over payment of salaries and restoration of leaves. The Airline has assured the disgruntled employees that their issues will be resolved by November 8.
The employees are hopeful of salaries being restored to what they were before the pandemic.
The employees who went on strike across Delhi, Ahmedabad, Mumbai, Bengaluru, Kolkata, Cochin, Hyderabad, Patna and Pune airports, claim they were being paid only 60 per cent of their salaries. They were disappointed that they were being paid hourly wages and were also being deprived of their weekly offs.
However, last month, the chairman and managing director had said that all salary-related issues had been resolved and full salaries were being paid regularly now.
On November 1, however, most of the employees working at the aircraft maintenance department, gathered outside Terminal 3 of the Delhi airport, to protest holding up banners demanding their deferred salaries and normalisation of pay. Operations were expected to be affected if the protests continued.
Fortunately, the assurances from the management on November 2, have placated the protestors.
Meanwhile, Crisil Ratings has withdrawn the credit rating for SpiceJet, and placed it under the ‘non-cooperative’ category. Such a ‘non-cooperative’ rating of an organisation indicates its poor financial condition and weak credit risk profile.
Due to increasing losses, the net worth of SpiceJet has taken a beating. Its existing liabilities are at least over Rs 6,000 crore more than its current assets.
On November 2, Crisil withdrew its credit ratings on SpiceJet’s bank facilities aggregating to Rs 1,225 crore.