COVID-19 lockdown: IndiGo reinstates pay cut for senior employees from May

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IndiGo will be cutting the salaries of senior employees from May onwards and implement a limited, graded leave without pay program for the months of May, June and July.

 

India has been under lockdown since March 25 to curb the coronavirus pandemic. As a result, the aviation industry is in a complete lockdown with bookings being cancelled until any further orders, and revenues of the Indian aviation industry have been hit hard.

"While we had paid employee salaries in full for the months of March and April, I am afraid that we are left with no option but to implement the originally announced pay-cuts from the month of May 2020," its CEO Ronojoy Dutta told employees through an email.

"In addition (to pay cuts), given the gradual build-up of capacity, I am afraid we have to take the additional painful step of implementing a limited, graded leave without pay program for the months of May, June and July", he added.

"This leave without pay will range from 1.5 days to 5 days depending on the employee group. While doing so, we will make sure that Level A employees, who form a majority of our workforce will not be impacted," he said.

On March 19, he had announced that the airline was instituting pay cuts for senior employees and he would himself take the highest cut of 25 per cent amid the COVID-19 pandemic that has hit the aviation industry hard.

"I am personally taking a 25 per cent pay cut, SVPs (senior vice presidents) and above are taking 20 per cent, VPs (vice presidents) and cockpit crew are taking a 15 per cent pay cut, AVPs (assistant vice presidents), Bands D along with cabin crew will take 10 per cent and Band Cs five per cent," Dutta had said on March 19.

While IndiGo had announced pay cuts for its senior employees on March 19, it had rolled them back on April 23 in deference to the government's wishes.

Starting from March 24 midnight, India was under lockdown to curb the spread of novel coronavirus. The lockdown, effective March 25, is supposed to end on April 14. 

However, on April 14, in an address to the nation, Prime Minister Narendra Modi announced that the 21-day national lockdown has been extended till May 3.

On last Friday, the Centre again extended the ongoing nationwide lockdown for two more weeks with effect from May 4 till May 17 while allowing different sets of relaxations in red, orange and green zones.

 

With inputs from PTI

 

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