The management of Air Indie decided last week to cut in to the wages of their best-paid employees. That measure has lead to an strike. This week the government ended this four day strike by overruling this management decision.
The intervention of the government was due to the fact many pilots took sick leave after the decision of their management. At this moment the travelling season in India is very busy. This leaded to chaos on the airport.
The strike was not the only problem of Air India. The company have a losses of around $3bn. Now they have to make a good turnround plan for receiving fresh government funds.
Kapil Kaul, chief executive for India of the Centre for Asia Pacific Aviation said the fundamental problem of Air India is not resolved. The company has a bad cost structure and now with redrawing the cost-cutting measure it will not become better. Along Kapil Kaul, Air India has twice as much employees as it must have to run their operations.
I think the government did a good job by putting an end to the strike. It could have leaded to great losses for the country if the tourist stayed away. Now the government have to help Air India by finding a solution for the financial problems. Otherwise all the problems stay.
source: http://www.ft.com/cms/s/0/452294f2-ae23-11de-87e7-00144feabdc0.html
September 29 2009
Abonneren op:
Reacties posten (Atom)
I agree with Bart that the government did a good job by putting an end to the strike. Yes, it’s true all the problems stay if the government doesn’t help by finding solutions for the financial problems. But it isn’t possible to help all the companies in need. So where does it end? The government helps the companies with giving extra money but they recalculate it by giving higher taxes.
BeantwoordenVerwijderenGerty Rigaux