Friday, August 24, 2012

A WAKE-UP CALL FOR THOSE WHO DISBELIEVED IN THE POWER OF EMPLOYEE ACTIVISM

JET AIRWAYS FIRED AND RE-HIRED THOUSANDS OF EMPLOYEES AFTER MUCH DRAMA IN LATE 2008. SO WAS THE INCIDENT A WAKE-UP CALL FOR THOSE WHO DISBELIEVED IN THE POWER OF EMPLOYEE ACTIVISM?

“Perhaps the Airline Management could have implemented significant salary cut across the company which could have solved the situation instead of shaking employee morale across the board,” says John Siddharth, Aerospace Analyst at Frost & Sullivan to B&E. Of those sacked, half were cabin crews. The rest were ground and maintenance staff, junior managers and fresh recruits. The common fact however was that they were all serving the six-months probation period.

Jet was faced with immense criticism and opposition by various organisations and political parties over the sacking. The fired employees took to the streets in Mumbai, Delhi and Chennai, by holding dharnas and demos. However in Mumbai, Maharashtra Navnirman Sena (MNS) chief Raj Thackeray did its bit to rescue the axed employees. “When I returned after my round flight on Wednesday (October 16, 2010), I saw many of the sacked employees demonstrating at terminal 1B of the New Delhi airport,” recalls Neha. The aggrieved employees attacked the booking counters at the three airports – Mumbai, Delhi and Chennai, and discouraged passengers from buying air tickets. “Employee Activism should have been taken seriously by Jet. The complete stir only earned the company a dent on its reputation,” adds John. Jet, for the past two financial years had been in the red. It made Rs.6.54 billion in losses during FY2007-08 and was headed towards a bigger disappointment in that period. The layoffs were a means to curb the rising operational cost, which had even exceeded the total inflows for the past two years. It didn’t work, rather, it backfired making the case for what we call ‘firing mismanagement’. Those who were sacked, were let go without a reason, and even their guarantee money (Rs.55,000 payable after three years of joining) wasn’t returned. The manner in which the management executed the process forced Naresh Goyal, the Jet Airways chief, to made a public apology, taking vows of his late mother. The fired employees (in New Delhi) were invited to the Park Inn Hotel, where Goyal spoke to them confirming “no knowledge” of the action and reinstated them to their posts. “The employees were called individually and were handed over a letter of apology each,” confirms an employee who had faced Jet’s sniper squad. If employee activism works, this one did.

But what followed was expected. Most of the reinstated employees were confirmed sans a confirmation letter, and during the months that followed were either retained at lesses costs to the company or were fired in small numbers, just enough to avoid a media backlash all over again. Dubey of IndiGo recalls, “Some of my friends at Jet were demoted to ground duty with a much reduced salary and they replaced the ground duty staff.” Even one of Neha’s firends who is currently with Oman Aitways, was then amongst those fired. She was taken back in, allowed to work for about six months more, got confirmed, but was then fired again.

Finally, the Jet management got its wish. But this episode of employee activism teaches CEOs what a firing mistake is and what lessons employee activism can teach the management. Jet’s management learnt it well. So they say, “Mismanage firing, and they’ll come at you – the employees!”


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