Business

Vistara to Roll Back Changes – Does Away With Pay Cuts For Select Staff Categories

As more people are taking to the skies again, full-service Indian carrier Vistara has decided to revoke the pay cut it had implemented last year. This will apply to non-management employees only, with management-level executives, including the CEO, still under reduced payroll.

The global pandemic hit the aviation industry hard, with airlines having to suspend operations and in some cases, close shop. A joint venture between Tata Sons and Singapore Airlines, Vistara had implemented the reduced payrolls for nearly 40% of its workforce in June 2020. The plan was to continue it until December 31, 2020, to deal with the low demand of seats and scarcity of cash flow, which was further extended to March 31, 2021.

Similar News – Vande Bharat Mission: Air India to bring back stranded citizens

Vistara CEO, Leslie Thng, in an email sent to Vistara staff members said, “Our board has approved to cease the pay cut that was implemented for level-1 to level-3 staff from April 1, but the leadership team (level-4 and level-5) and I will continue with our pay cuts at 15 per cent and 25 per cent, respectively.”

The CEO also mentioned that the airline was not out of deep waters yet. The airline’s operating capacity and profits were still below pre-COVID levels and the way forward will still be a challenge, given the prevailing pandemic conditions, he added.

The airlines will also not be paying any yearly increment this coming April. Instead, based on the airline’s financial situation in the first 2 quarters of the new fiscal year, it will review annual increments in October.

Nonetheless, for staff members who are entitled for variable performance in 2020-21, all payments will be cleared in May, based on the company and staff performance in this financial year.

“We must remain vigilant in controlling our costs and be nimble and flexible in our plan and should be able to take difficult decisions if the need arises,” Thng added.

Andrew s

Andrew has been in the online publishing industry. After receiving his degree in professional journalism from the Indian Institute of Journalism and New Media, he contributed to multiple websites as a freelance writer and feature editor. Mostly, Andrew tackles controversies and theories that lead to a specific conclusion that either debunk or justify a particular claim. Further, Andrew participates in social developments that aim to simplify every individual's way of life and fight for peace. He is the new Editor-in-Chief of Pressroom Today.

Share
Published by
Andrew s

Recent Posts

India crowned as largest arms importer, Saudi Arabia claims the second spot.

The global arms trade is a lucrative industry that involves the buying and selling of…

1 week ago

The Shocking Collapse of Silicon Valley Bank: A Cautionary Tale of Financial Risk

The startup community worldwide has been stunned by the recent failure of Silicon Valley Bank…

2 weeks ago

The Impact of Influenza A Virus Subtype H3N2 in India: Symptoms, Prevention and Treatment.

The death toll due to Influenza A Virus Subtype H3N2 in India climbed to 3…

2 weeks ago

Vasudhaiva Kutumbakam- India’s G20 Presidency

Since the announcement of G20’s presidency for 2023, all eyes have been on India. Global…

3 weeks ago

Indian Feminism – Reflecting on the Past and Looking Towards the Future | Women’s Day 2023

In honour of International Women's Day on March 8th, the 67th session of the United…

3 weeks ago

Ukraine’s Ongoing War: The Final Battle Looms as a New Threat Emerges

The war in Ukraine has been raging for over a year now, and the destruction…

3 weeks ago