Jetairways case02

8/8/2019 Jetairways case02

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COMPARISON OF STRIKE

Prepared By :Monika (22)

Shailey (37)

Trisha (44 )


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CONTENTS

Introduction of Aviation Industry

Jet Airways Case

Air India Case Analysis

Conclusion


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BACKGROUND OF INDIAN AVIATION

The Civil aviation in INDIA Started on Feb 18th, 1911.

The First domestic air route was between Karachi and

Delhi was opened in December1912...!

First Indian airline, was owned by Tata Sons Ltd.

Avation in India started on Oct,15 1932 , when a light

single-engine plane took off.

Tata Airlines converted into a Public Limited Company on July29,1946 and renamed AIR INDIA

In 2006 Indian Aviation Industry was positioned 9th in

World


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ABOUT JET AIRWAYS

Jet Airways(India) Private Ltd. Founded by Naresh Goyal

in 1st April1992

Headquarters Mumbai

Jet Airways (India) Private Limited is India's leading

private airline.

It boasts a market share of about 29 percent.

The country has 454 airports of which 16 are Internationa


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Air India was regd. as Air India International on March 8th 1948

and started its International operations.

Air India is the 17th largest airline in Asia

Serves 28 destinations worldwide Serves over 100 cities , with

its affiliated carriers.

Air India is state-owned, and administered as part of the National

Aviation Company of India Limited .

On 22 Feb 2007, two government owned

air carriers -Indian Airlines &

Air India, merged together.

ABOUT AIR INDIA


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JET AIRWAYS CASE


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CASE FACTS :JET N PILOTS STAND -OFF

Location: Mumbai.

Employees involved: 760 pilots

Period: 24th July - 13th sep 2009

Demands: To re-instate sacked pilots

Financial loss: 10 million US $


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24th July'09 : NAG , an union formed by Jet airways Pilots and is formallyregistered with Regional Labor Commissioner, Mumbai

31st Jul'09 : Jet airways sacked two senior most pilots for forming a trade

union

5th Aug'09 : Two terminated pilots appeal to the Airline for reinstate

17th Aug'09 : Jet airways CEO refuse to reinstate the two pilots

24th Aug'09 : NAG sends two week strike notice to the airline management

and a formal notice to the labor commissioner

31st Aug'09 : A conciliatory meeting was called on between the management

and union by regional labor commissioner.

CAUSE OF THE STRIKE


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7th Sept'09 : Bombay High Court restrained themfrom resorting to any form of strike

Jet sacks two more pilots

8th Sept'09 : 450 members of NAG went on stimulatedstrike by way of mass sick leave

They are behaving like terrorists. They can't hold the

country, the passenger the airline hostage.-

Naresh Goyal

Labour minister said ESMA could be invoked against the striking

pilots .

Contd :


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Civil Aviation Minister told Mr Goyal to end the crises as soon as

possible due to report of other airlines charging sky high fares.

PM Dr. Manmohan Singh inquired about the situation in the

cabinet meeting

Govt was worried for malign of international image due to the

strike.

The Government Bodies involved were: Civil Aviation Ministry,DGCA, The Labor Ministry, The Chief Labor Commissioner,&

the Regional Labor Commissioner Of Mumbai

GOVERNMENT ROLE IN JET TURBULENCE


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EFFECTS :

800- Total no of flights affected

80% of the passengers were accommodated on other carriers and

20% cases refunded

Had booking for 14,000 domestic passengers and 9,500 intn'lpassengers

Passengers were the major sufferers:-

Other airlines charging sky high fares

The five days stand-off translates in to a revenue loss of US$ 10 million 25% market share loss.

2.5 million revenue loss a day.


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ANALYSIS

Forming a trade union is Permittable by law.

Pilots have not done anything illegal in forming a trade union.

They were simply forming a union which is within their legal &

constitutional rights.

Pilots are right ,but they used the wrong tools.

Pilots could have protested in some other way, not by causing

inconvenience to those who paid their hard earned money to buy

tickets.

India being a democratic country certain amount of protection

for labour is necessary. Management must manage issues

amicably and be willing to listen to employee.


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AIR INDIA CASE


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Case facts :

Location: New Delhi

Employees involved: 25000 employees

Period: 25th May - 27th May

Demands: To take the gag order back

Financial loss: Rs 12 crore


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CAUSE OF THE STRIKE

25th May 2010 : 25000, Air India employees including engineers

went on a Flash Strike protesting against a gag order issued by

the management against speaking out in Public on the

Mangalore crash.

Air India issued a show-cause notice to the Engineer.

Meanwhile, Air Employees Corporation Union(AECU) joined

the strike with All India Aircraft Engineers Association

(AIAEA) already there.

The management, however, clarified there was only one general

circular and that there was no 'gag order'


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The strike had another issue Delay of payments.

The Delhi High Court cracked the whip and restrained the AirIndia employees from continuing with their strike.

Meanwhile Air India sacked 58 employees,also suspended 15

engineers on Thursday for going on an 'illegal' two-day strike.

Justice Rajiv Sakdher issued notice to the striking employees union

and posted the matter for further hearing on July .

The ex-parte order was passed on a petition moved by National

Aviation Company of India (NACIL), which runs the nationalcarrier, alleging that the strike by the employees was illegal when

the reconciliation process was going on.


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The company submitted that the strike was violative of sections 22

and 24 of the Industrial Disputes Act and it has caused 50 per cent

loss in its business since Tuesday.

Employees who continue to resort to strike after the court order

stand to be terminated.

The government on 27 may gave a free hand to the airline to takefirm measures to restore normalcy in its operations

The management then decided to de-recognise the 2 unions.

Expressing "grave concern at the vindictive attitude of the AirIndia management" in sacking and suspending a large number of

employees even after they called off the strike, the CPI(M) said the

management also "arbitrarily" withdrew the recognition of Air

Corporation Employees Union "without assigning any reason".


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REPERCUSSIONS

Due to the Strike, Over 140 domestic and international Air

India flights were cancelled after 25,000 employees struck

work.

The international services disrupted included flights toSingapore, Kathmandu, Dubai, Muscat and Abu Dhabi.

With summer as the peak season of travelling, it had to make

arrangements with private airlines like Jet to accommodatepassengers.


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ANALYSIS

A section of employees resorted to an illegal action without

any notice . Purely on the basis of a show-cause notice (to the

union secretary), the engineers along with some sections of

other unions resorted to a flash strike.

Management said "We had only sought an explanation (from

the union leader), but instead they went on a strike".

Government was trying its best to support Air India during

difficult times being faced by the civil aviation sector.Theyalready infused Rs 800 crore and were on the verge of

giving another Rs 1,200 crore.


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ANALYSIS


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My Vision was to form a global airline . This

merger will take the mega airline straight into the

top 30 airlines with the precision and reliability of

Lufthansa and the passenger service standards of

Singapore Airlines will be formed .

-Aviations Minister Praful Patel.


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Any Queries . ?


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