Jet Airways Fiasco

It has been around 15 days since I have written here. I have to write more often for sure.I have lots of issues to talk about, one issue which stands on top of my head is the retrenchment and immediate roll back of sacked employees in Jet Airways.

There is no doubt that there is a slowdown and a turmoil in the global economy.All sectors are facing the heat and the slowdown is truly global as it is ought to be in a truly globalized world. All companies are faced with a slowdown in sales and the top management all over are in crisis control mode.One tool for them is to cut down their operating expenses and the first to bear the brunt would be the employees.It is in the best interest of the company that this decision is being made.

Layoffs or firing of employees in Western countries is relatively more common than in developing economies like India.Companies like HP and Pepsi Co have laid off their staff in large numbers , but the sacked staff have been able to face the situation more strongly than what people in India would do in such circumstances.

These companies would provide, say one month's salary for the employees while leaving as some sort of compensation. The sacked employees immediately within a month or two find smaller jobs to pay of their minimum expenses. They do not try for the same jobs as they did earlier but they employ themselves in simple jobs.But in India , people do not have that kind of mentality either do the employers. If one person has started his career in one industry many do not change it but the situation is fast improving.

The top management of Jet Airways headed by a foreign CEO felt they can chop of the extra employees in the name of rationalization and adjustment. There are many more fancy words which they use to describe the firing of the employees.They thought it will be a good move and assumed it would work wonders in their alliance with Vijay Mallya's Kingfisher airlines.

The media were quick to bring the issue to the fore and almost all leading dailies gave the front page to this news item.Hundreds of youngsters who have spent large amounts of money on the courses for getting these jobs were mercilessly shown the exit door without having even completed a year in their jobs.The employees started protesting and political parties were preparing to jump in to the issue with full steam.The brand 'Jet' was taking a beating. As expected the 'fire and hire' policy is not going down well with the sentiments of the Indian community.

With pressure mounting from various quarters , Naresh Goyal the Chairman of Jet Airways has decided to reinstate all the sacked employees.He says that he did not take the decision under any political pressure or after meeting any political leader and adds that that it was not his decision to sack the employees but it was that of his management.It is hard to believe for us as to how the management would have gone ahead with the decision without the approval of Naresh Goyal.

Apparently it seems that they(Jet Airways) did not expect these protests and now they are paying for their reckless decision.Given the kind of Indian job market it is not right on the part of the company to literally play with the careers of employees. They are not accessories which can used when needed and thrown once not needed.They are humans with emotions of the same kind which Prock Schauer and Mallya have.They need graceful separation from the companies they work for.I am happy that India still offers stiff resistance to the 'fire and hire' policies of the corporates.

The employees must be flexible and should develop a mind set to work in any kind of job which is available to them.The corporates I feel should be more careful while increasing their head-counts even if it can slowdown their growth rates a bit but it surely gives them and their employees a better relationship even in adverse economic conditions.