Voting on the consortium’s offer for employees and workmen began on Monday and will go on till August 4.
The National Company Law Tribunal cleared the consortium proposal to revive the airline on June 22. While Jet Airways had admitted claims of around Rs 15,000 crore, the consortium has offered to settle claims of Rs 475 crore of financial and non financial creditors. Employee claims worth Rs 1265 crore were admitted and the consortium has proposed Rs 52 crore to settle all their claims.
Additionally, for the employees and workmen, the consortium has offered cash and non cash benefits including 0.5 per cent equity stake in the airline to those who were on the rolls of Jet Airways when it went into insolvency in June 2019.
A welfare trust will be formed of all the staff and it will hold 0.5 per cent stake in the airline and 76 per cent stake in its ground handling subsidiary. Employees and workmen would be paid Rs 11,000 and Rs 22,800 respectively. Each of the workmen would be given a phone, laptop or an ipad through a lottery basis and ticket vouchers worth Rs 10,000.
There were around 9,000 employees with the airline in June 2019 and that figure has dwindled to around 3600. In case 95 per cent of staff do not vote in favour of the proposal it will automatically lapse. The 0.5 per cent stake reserved for the staff and Rs 8 crore allocated for making cash payments to them will be given to financial creditors.
Only 50 of the existing staff will be absorbed in the airline and the rest will be transferred to the ground handling subsidiary as a part of the resolution plan.
An employee said that Rs 11,000 or Rs 22,800 cash offer is a small consolation for the staff who have been waiting for the revival.
“There is no assurance of a job in the new entity and moreover if we get selected it will be at lower pay than what we earned in 2019,” said another staffer.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.