Another aviation company faces financial crisis, holds staffs' salary
The circular was issued on 25th April and given to employees who are currently not getting their salaries because of the financial crunch.
The financial performance of the helicopter service company has worsened overtimes. The revenue has sharply declined in the financial year 2018-19 and the company has incurred a net loss to the tune going to Rs 89 crore during this financial year.
Further, the situation has further turned critical as the outstanding amount lying with various customers has risen to alarming levels of over Rs.230 crores.
As happened in the case of Jet Airways, the financial crisis at Pawan Hans has affected the salaries of employees.
"Keeping in view the crucial financial position of the company, it has been decided to defer the salary for the month of April 2019 of the employees other than who are directly contributing to the production till the time a target recovering 60 per cent of the outstanding dues by bringing the receivable below ₹100 crore on achieving the task. The issue would be reviewing with alternative methods of cost-cutting with and improve the deficiency in Pawan Hans Ltd operations with a contribution of each individual employees," read the circular.
The employee union of the company doesn't agree to this move and refers it to be inhuman.
"It is inhuman to stop the salaries of workers who all are due for wage revision. The so-called management is diverting the issue with the stopping of payment where the same company executives have pocketed the new skills with arrears. It is for your kind information that we are wearing a black ribbon as a mark of protest against the inhuman act of the management," shared the union.
The union members have even threatened to approach the CAG and CBI over these financial issues given that the management does not listen to their grievances.
Currently, Pawan Hans has a fleet of around 46 choppers, and an uncomfortable financial position.
Holding staffs salaries is probably just the beginning. As the letter mentioned that the company has realized a need for complete transformation. It might adopt more corrective measures in various areas of management. Will Pawan Hans have a similar fate as Jet Airways and Kingfisher Airlines? Or will it be able to navigate through these challenges and survive the storm? Only time will tell.