Jet airways labor dispute:

Trade unions and India labor conundrum

Jet Airways
Type Industry Headquarters Area served Key people Services Public Transportation Mumbai, Maharashtra, India Africa, Asia, Europe and North America Naresh Goyal, Founder &Chairman Nikos Kardassis, airlines & aviation airline Catering & Foodservice Ground Handling Services 10,017

Employees Revenue

10,622.92 crore

Flaws of Indian labor Laws

Labor knows only duties not rights First factory act 1881- employment off

children 7 age 1926- Indian trade union act 1947- Industrial dispute act 1970-Contract act (regulation & abolition)

Situation
Sept 8, 09 around 650 pilots took a mass

sick leave Protest against the mgt sacked two of its pilots for joining a union (NAG) Lasted for 5 days (8-12) Cancel 900 flights Aviation industries, employee, MNC & passengers suffered through it

Jet airways: a wrong take off

Formation of NAG Termination of services just due to

active participation Not illegal- registered in LCO Labor commission in action But management not in favorable move Pilots Went on massive sick leave Goyal- behavior like terrorist

other side
1.Continued to be on sick leave
2. Pilots used loopholes of Indian labor laws

effects

Massive loss Less no. of passengers (23000to7500) Drop 30% ticket booking Lost 225.3cr Bad publicity Angry passengers

Is it time to modify labor law

Age old labor law frangible enough to

control the labor union Its Power to labor activity Not improving country economic health and labor statistics Depends on flexibility in labor market Laws overlaps many time Labor- lost of work days, lack of trust, political intervention, jobless growth.