Wokay!

We now interrupt our current run of TV-blogging to abuse everyone involved in the Jet Airways fashla.

Jet Airways

What the hell went wrong? What were they thinking when they fired people overnight? The only possible answers are colossal stupidity or desperation.

Desperation – we know that they haven’t been paying their fuel bills for a while. And with eight months of running losses, banks were refusing to provide working capital. And with the financial crisis on, raising long term capital looks practically impossible. They’re bleeding cash, and firing their newest employees probably seemed like the quickest way to staunch the flow.

Colossal stupidity – is a stereotype that usually goes well with HR departments and senior managements. But in this case, it looks like they really weren’t thinking the consequences through. They now have Raj Thackeray, the CPI(M), and news channels baying for their blood. That will probably pass, but they’ve lost their reputation as a good employer. When the business cycle improves, they’ll have to deal with not being an employer of choice. (That assumes they’ll survive until then.)

Back in the last recession, there were a bunch of IT companies which made their layoffs/ salary cutbacks as painless as possible and got written up as case studies. I think Mindtree was one of them. Jet Airways didn’t learn. (But then Ajay Shah has written that nobody in India even understands that business cycles exist and a recession will eventually come along…)

Jet Airways Employees

OK, being told in the morning that you’re fired and you shouldn’t show up for work is definitely a shock. More so, if it happens to 1900 of your colleagues simultaneously. But if their sob stories are true and they are sole breadwinners who have taken out home loans and are worried about how they’ll pay their EMIs, then I have to say that they were idiots. They were on probation. They knew that they’d been hired for a one year period before being confirmed. They knew that house prices were higher than ever before. They knew that they were employed by an airline that was losing money and that job security apart, salary increases were probably not coming soon. And knowing this… they went into debt. FSM preserve them.

Hopefully, the ones shouting on TV about their EMIs were a small minority who the news channels picked to add to the drama.

News Channels

Dear news channels. This is not the largest layoff in India in the recent past. Banks have been shutting down their associated consumer finance/ small business loan NBFCs left right and centre over the past year, and the total layoffs in these have been much higher.

This is merely the largest layoff in India of attractive young people who speak good English. Please insert the appropriate disclaimers. And stop trying to project the temporary plight of young middle class Indians who are otherwise employable as the end of the world. Okay?

The CPI(M)

The CPI(M) is pretty much complicit in bringing Jet Airways to this state. All of last year, they sat in the way of price hikes for petrol, diesel and kerosene. So the oil marketing companies raised the prices of air fuel instead in an attempt to survive. And now Jet Airways is bankrupt and has to sack employees to survive. After this, Nilotpal Basu has the gall to go on TV and say that the CPI(M) won’t allow Jet Airways to operate from Kolkata.

Also, demanding reinstatement? Firing employees isn’t pleasant, but at least it does stem the cash outflow a little. If Jet Airways kept them on, then it would keep losing money until it couldn’t even pay the confirmed employees, who’d been on the payrolls longer. The CPI(M) seems more concerned about a thousand jobs today than twenty thousand jobs next year (and CEOs get abused for thinking in the short term!). (Related reading here.) Either the CPI(M) is (shock! gasp!) a run-of-the-mill political party, concerned only about the next election; or it doesn’t understand reality. Or both.

Oscar Fernandes

Because when he was asked for a soundbite, he smiled and said that he didn’t know anything because he had been at a junket labour ministers’ conference in Bali.

Praful Patel

OK, no abusing Praful Patel. Because he’s actually refused to bail anybody out, pointed out that this is to do with ATF prices, and has generally not played to the gallery.

This entry was posted on Thursday, October 16th, 2008 at 10:24 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.