In a gloomy state of recession where financial crises are on a rise Indian aviation industry is badly hit. Airlines operating in and around India lost about 2 billion in 2008. Jet Airways reported a quarterly loss of $43.656 million in the quarter ended December 31, 2008. Traveling demand falling even further with the health scares from H1N1 virus. In such sorry state of affairs when the entire global economy is struggling the employees of a company are their biggest assets which can help combat the situation. Cooperation from the employees is a benefit for both the company and for employees themselves.
The showdown by jet pilots on September 8, 2009 indicates a very unpleasant situation where around 360 pilots (163 captains and 198 first officers which represents 40% Jet pilots) went on an illegal strike in Mumbai to protest the dismissal of two union employees who were trying to form union in the company on announcement of salary cut by Jet Airways. These pilots reported sick and this illegal strike resulted in cancellation of 186 flights (154 domestic and 32 international). The strike continued for five days and resulted in daily loss of about $4 million to the airline. Jet Airways share lost 3.54% on Bombay stock exchange. Passengers were transferred to other carriers and the incident virtually took the airline to a standstill.
The strike underlines uneasy labour relations in India and is an indicative of the archaic state of affairs of Indian labour laws. No stringent action could be taken against the pilots, as according to Indian labour laws a common form of protest, mass sick leave by employees is barred from a formal strike. Is the ?mass sick leave? submitted by Jet Airways pilots tantamount to an illegal strike? The question is before the Bombay high court. Indian trade union act of 1926 grants right to form trade union and negotiates on wages and fringe benefits and it is due to this that Thomas, one of the two employees who were dismissed proudly says ?forming union is our constitutional right?. An employer can?t fire an employee on grounds of indiscipline or nonperformance because of strong culture of trade union. Even the political leaders take side of striking workers to protect their vote bank. The result is the havoc that occurred on September 8, 2009. Repercussions of these labour laws were seen in the past as well when prolonged labour unrest in the 1970s and 80s virtually wiped out the cotton textile industry in the western state of Maharashtra and jute and heavy engineering in the eastern state of West Bengal.
The World Bank rates Indian labour law as most rigid. A World Bank report on ease of doing business ranked India a lowly 122 of 181 countries and suggested greater flexibility in labour laws would help create more jobs and reduce poverty. Archaic labour laws hurt business. They have a negative effect on foreign investments in India. The time has come when we need to rise above these laws and make our country a better place to work in.
The author is from the 2009-11 batch of DSM and can be reached at swati.123.me@gmail.com
