Mandatory Leave For Vistara Employees – Up To 3 Days For 30% Employees

by Sanjana Shenoy

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With all domestic and international flights cancelled amidst the coronavirus scare, Vistara, the joint venture of Tata Sons and Singapore Airlines announces mandatory leave without pay for up to 3 days for 30% of staff to further reduce the airline’s cost. The cost-cutting measure will affect 30% of Vistara’s 4000 employees. However, this decision won’t affect the cabin crew, ground and security staff.

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What’s In It?

Leslie Thng, Vistara CEO has officially announced that their senior employees, from the CXOs and managers, will go on mandatory leave without pay for three days during this lockdown. This cost-reducing measures will affect almost 30% of Vistara’s nearly 4,000 employees. However, the remaining employees such as cabin crew, ground handling staff will not be affected.

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In a recent email to all the employees, CEO Leslie Thng wrote “While we are doing all possible, including a recruitment freeze, we have to look at other means to further reduce our cost”. This employee directed email has been accessed by PTI. Thng also mentioned that the annual salary increment exercise has been shifted from 1st April to 1st July and upon consideration, an appropriate decision will be taken. He further mentioned in the email “For staff in Level 2 and above, the annual pay-out for Variable Performance Pay (VPP) will be deferred to July 2020”.

Also Read: Bangalore To Have 31 Fever Clinics To Conduct Coronavirus Tests

What’s More?

When Prime Minister Narendra Modi announced a nationwide lockdown till April 14, all domestic and international flights remain suspended to control the spread of coronavirus. Addressing this lockdown, Thng mentioned in his email that this lockdown will have a “huge negative impact” on their cash flow as income cannot be generated due to operations being suspended. Other Indian airlines have already announced their cost-cutting measures due to the severe halt in the inflow of their revenue that has arisen due to the coronavirus outbreak. Did you know SpiceJet Airlines Offers Flights To Carry Migrant Labourers To Their Homes From Delhi And Mumbai?

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IndiGo has announced that its senior employees would be taking a pay cut of 25%. Also, GoAir has laid off its ex-pat pilots, along with introducing leave without pay for employees on the cyclic system and announced pay cuts for all employees. The situation of coronavirus continues to evolve around the world with many countries being overpowered battling this pandemic. In India, as many states are worse hit by others, everyone waits patiently to see how the situation evolves till 14th April. Until then, everyone should remain indoors and maintain sanitation to curb the spread of this virus.