A period of Recession..
India’s Leading Air Liner – Jet Airways has now re instantiated all of its 800 sacked employees following protests in cities and with demand from politicians. Following a late night news press conference in Mumbai on 16 October 2008, Mr.Naresh Goyal, Chairman, Jet Airways announced the decision to the gathered media.
“I apologise for all the agony you went through,” Goyal said. “The management will have to understand sometimes in a family there are disagreements but the father of the family decides.”
Earlier Jet Airways had announced a further lay off of Over 1200 more employees, apart from the 800 already sacked. This decision came as a measure to cope with the slowing demand, high fuel prices and to accommodate the losses incurred in the fiscal year.
The FIA(Federation of Indian Airlines) had already asked the government to bail out the industry. The FIA has asked for Rs.5000 Crores, Interest free from the Indian government. The Airline industry is now facing the biggest loss ever. Such high that The Indian aviation industry, which had grown at an average annual pace of more than 25 percent in the past few years in a booming economy, is forecast to post combined losses of nearly $2 billion in the year to March 2009.
The ‘Alliance’ of Kingfisher Airlines with Jet Airways was termed as the biggest reason for the lay off. “The Layoff’s were primarily a cost cutting measure. I have not been influenced by anybody, or any other source.” Mr. Naresh Goyal clarified. He also informed the media that all the employees were like his family and he expects his family members to also understand the reason’s for the lay off, that he also expected the family members to bail the family out of financial trouble (Possibly expecting the employees to work on lower salaries for sometime)
The alliance purely comes out to be the reason for the lay off. It’s simple. For example, 4 flight were operated from Mumbai to Delhi by 4 different airlines. Now there will be only 2 flights operated making sure that the flights go full. Now, what happens to people who work for the remaining 2 flights? Remove them and the flight, and Save Money.
The layoff’s have not been restricted to Airline Industry alone. Most of us know that all industries are laying off people depending on the company size. IT ans Software industry has been a leader in laying off people. Reason is quite evident, The credit crunch. Most It companies are dependent on trade with Companies in the USA. AS we all know, US is going through a economic crisis. People are unable to pay their credit card bills, leave alone the companies making payment to their vendors. As a cost cutting move, People who have been sitting on the ‘Bench’ need to be removed. The company also runs a performance review to assess the performance of all other employees and identify people who are NO ‘Value for Money’.
“We have been removed from Jet Airways, While in the news paper we still see ad’s about walk in interviews for Kingfisher.” A Jet Airways employee Pointed out.The Same is the case in other industries, People are still being recruited big time in the software industry. If Credit crunch is the reason why would companies hire more people? All that i can understand is that, by recruiting people who are already experienced is more ‘Value for Money’ than a newbie. Newbie’s need to be trained, the company invests a lot of money for training and development. By employing a Experienced person, they save the money spent on training.
All reason’s seem valid, May be it is some kind of a recession, which i hope will vanish in near future. What’s more important at this point in time is that the management has to announce layoff’s in some time frame. If i’m expected to notify the company 2 months in advance, I also expect to be notified of my poor performance or a layoff at least a month or a week ahead of the actual ‘Departure’ date. Most of the time, the layoff announcement is random, Employees are expected to leave the very next second.
I once remember my proffesor at college telling us that, 2008 will be a bad year for the working class. He expects a recession in every 8 years. I was an electronics student then, he told us to struggle hard and join the ardware industry. I’m now a part of the receding software industry. Enjoyed the Good times, Now have to see myself through the bad time. “Do not worry, This is not the end of the world, There’s more to it. It’s just a small period of downfall which will evade in sometime.” assured a leading HR Consultant on a talk show on CNN IBN.
“Do ur best for God to do the Rest!!”