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Government washes its hands of Jet layoff
 
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October 16, 2008 11:24 IST
Last Updated: October 16, 2008 18:28 IST

Ministers criticised it, sought a report on it and sympathised with those at the receiving end of it, but hinted there was little the government could do about Jet Airways [Get Quote] decision to sack 1,900 employees.

"There is no responsibility of the government in this case. Our responsibility is only to ensure that the economy is functioning well," Science and Technology Minister Kapil Sibal said at a briefing on decisions taken by the Union Cabinet.

He said the Cabinet did not discuss Jet's sack order at its meeting, although Petroleum Minister Murli Deora separately criticised the timing of the decision -- right in the middle of the festival season.

"I appeal to (Jet Chairman Naresh) Goyal not to retrench people and try to find some solution. We have supported Goyal several times (but) this is not the right time to retrench people, particularly before Diwali," he said.

Labour Minister Oscar Fernandes said he had asked the chief labour commissioner to submit a report.

Jet handed out the pink slips to its probationary staff, who were recruited for expansion purposes, following an unexpected downturn in the industry.

The retrenchment would result in savings of $1 million for the airline.

"There is a problem in the aviation industry, particularly in Jet Airways. Definitely, I am looking into it," he said.

"When our airlines are not profitable, then they will have to take their own decision as to how will they remain efficient and competitive," Sibal said.

Similar views were expressed by Commerce and Industry Minister Kamal Nath who said: "Jet is a commercial organisation and it has to take its own commercial decisions."

"(Jet Chairman Naresh) Goyal is my friend and I have always supported him (but) I do not approve of (the retrenchment) you just cannot do such a thing," Deora said, while pointing out that the government had supported Goyal several times.

Civil Aviation Minister Praful Patel, who said on Wednesday the sacking was an HR issue of Jet, sang a different tune on Thursday saying he 'sympathised' with the laid-off employees.

Deputy chief labour commissioner's report: Altogether 700 of the 1,900 retrenched Jet Airways employees were on probation with less than one year of service record, deputy chief labour commissioner of Maharashtra and Goa said in a letter submitted to the union labour ministry.

However, the government is likely to look into the sacking of the remaining employees, labour secretary Sudha Pillai said.

"As per law, probationers below one year of service can be retrenched without serving any notice. So, there is no violation of law. We are looking into the matter of the remaining employees who were sacked.

"So far, the labour commissioner there hase not received any complaint from anyone," Pillai said.

Provisions under the Industrial Disputes Act states that employees who have completed their probationary period can approach the labour commissioner's office to seek justice for undue removal from service.

"If we receive any complaints it will be dealt as per provisions under Section 25(O) of the Act. So far, there are none. Hence, we can do nothing about it but feel sad for them," Pillai added.

The deputy chief labour commissioner's letter said all retrenched staff, including the probationers -- 578 cabin crew and 120 ground staff -- have been a paid a month's salary apart from returning their security deposits.


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