After flip-flops, IndiGo clarifies pay cut for senior employees will be for entire 2020-21

After announcing on Friday that it was reinstating pay cuts of up to 25 per cent for its senior employees, IndiGo airlines said it would take a decision on restoring original salary "closer to the end of this financial year".

The country's largest domestic airlines had on Friday announced pay cut ranging between 5 and 25 per cent, in addition to its leave-without-pay programme for May, June and July, for senior employees.

The announcement, made through internal emails, came after a series of flip-flops on the matter as India's largest domestic airline struggled to stay afloat amid grounding of all commercial passenger flights due to the coronavirus-triggered lockdown.

In the emails accessed by PTI, the airline said the salary cut will be effected from May till the end of the 2020-21 financial year. It has already paid full salary of April to its employees.

The airline had first announced its decision to cut salaries on March 19 when the economic fallout of the COVID-19 pandemic was apparent, but rescinded the move on April 23 in deference to the "government's wishes".

Again on Friday morning, it said it would implement the "originally announced pay-cuts" from May onwards.

"While we had paid employee salaries in full for the months of March and April, I am afraid that we are left with no option but to implement the originally announced pay-cuts from the month of May 2020," IndiGo CEO Ronojoy Dutta told employees in an email on Friday morning.

Later, in its Friday night's email, the airline clarified to the employees: "At this time, we intend to run this (pay cut) through the year 2020-21."
On the question if original pay would be restored whenever this pay cut is repealed, the airline said: "As a company, we will be fair to our employees and do the right thing at the right time. We will make a decision closer to the end of this financial year."
In his email on Friday morning, Dutta said, "In addition (to pay cuts), given the gradual build-up of capacity, I am afraid we have to take the additional painful step of implementing a limited, graded leave without pay program for the months of May, June and July."