'Is it a crime to ask for salaries?' ask Kingfisher employees

October 6, 2012

kingfisher-vigil

Mumbai, October 6: "Asking for salaries is not a crime ", shouts one banner. The other poster questions, "Is your party over Mr Mallya?" Yet another hollers, "Criminal Executive Officer, Go Away!" Around 150 odd engineers, pilots and cabin crew of the Kingfisher Airlines marched with them.

Wearing black armbands, the group meandered from Terminal 1A at Mumbai's domestic airport to Kingfisher House, the airline's corporate office in the city.

A protest in the shadow of a suicide. Yesterday Sushmita Chakravarty, wife of Manas Chakravarty hung herself at her residence in south-west Delhi. Depressed since a year, she wrote about the financial strain beating down on the family since her husband had not been paid for six months.

"It's tragic," said a captain who specified that he does not want to be named. "What's worse is that the management has not even bothered to condole the family. The apathy and the utter disregard has made us very angry. That's why I came today to express my protest."

"We can't let anything like this happen again. I have come here to tell my colleagues and their families, you are not alone. We are all in this together," said a cabin crew member who also did not want to be named. Employed with the airline since its inception in 2005, she said she does not want to quit. "You have no idea about the pressure we are under from our families to quit. But does anyone understand that we have invested our time and life in this company, what about that?" she asked.

She said there are around 800 to 1000 odd cabin crew at three bases in Delhi, Mumbai and Bangalore. Unlike the pilots and engineers of Kingfisher, the cabin crew is still a disparate group.

250 odd pilots of Kingfisher and around 270 engineers are attempting to form two associations to organise themselves better in this crisis. They are yet to register them. A lack of unity has cost them before, and they are unwilling to take any chances now. Earlier strikes by employees fizzled out as groups in each base took unilateral decisions. Since December 2011 Kingfisher has witnessed several strikes, mostly by pilots, many hardly lasting for a few hours let alone days.

"If we want our salaries, we have to become one group. We have to fight as one," says a young engineer, one more person refusing to give his name. "You can say I am from Kingfisher engineering staff."

Right at the head of the march was Shruti, a technician. She was among the few who dares to disclose her identity. "I stopped coming to office because I have no money to travel. Can anyone imagine not having salary for seven months and somehow carrying on? How? I have EMIs to pay. I have to support my parents back home in Kolkata. I have borrowed from friends and I need to pay them. What to do?" the exasperation in her voice conveying more than the words themselves.

Earning around Rs. 40,000 a month, Shruti hopes the company will pay her dues. "God knows what Vijay Mallya will do," she said finally before her colleagues whisk her away.

While everyone marched together, they formed little groups when they reached the Kingfisher House. Pilots converged among themselves, senior engineers huddled together while the technicians all fanned out at the fringes. And the concerns of each group varied. While unpaid salary remained a central theme, for each group the nuances differed.

"You know they have not given us our form 16 since months? How are we to manage our affairs? And they have defaulted on Provident Fund too," said a senior captain on the company's airbus fleet.

"I left a stable government job in the east of the country to join this very lucrative commercial carrier. Who knew there would come a time, I would have to protest to get my salary and form 16s," he laughed, but refused to be named.

A group of young technicians were not so worried about their Form 16s. "First, let them deposit our salary, let me pay off my rent and debts, then I will worry about paperwork," said one of them.

Technicians maintain and repair aircrafts and its parts. Their starting salaries range from Rs. 12,000 to Rs. 60,000, while the engineers can earn anywhere from over a lakh to two and a half lakh rupees per month.

Why don't they quit? Surely it's better than the uncertainty? Pulkit Deka, an engineer said, "The job market is saturated." His friend said, "So many Kingfisher engineers have quit. They are all out there waiting to be absorbed somewhere. Other airlines know this, so they are offering lower salaries. If we quit here we lose our salary, they will not pay us at all. If we join there we don't get our worth. We are stuck."

And so is Kingfisher Airlines. Today the aviation regulator - Directorate General of Civil Aviation (DGCA) - has sent a notice asking why should its license not be cancelled or suspended. While the company's lenders offered it around 60 odd crore rupees yesterday to tide over the current crisis and get people back to work, the money will only pay about two months' salary of its staff. Employees, on the other hand, are adamant that they won't go back until they get all their pending dues. Since Wednesday, they have boycotted every attempt of the management to talk to them on the issue.

The airline management, now hemmed in, has extended its partial lockout until October 12.


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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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News Network
May 10,2020

New Delhi, May 10: India's COVID-19 count crossed 60 thousand on Sunday, with Maharashtra being the worst-affected due to the infection so far, according to the Union Ministry of Health and Family Welfare.

The number of total confirmed cases in the country rose to 62,939, including 19,358 patients who have been cured and discharged or migrated, according to the Ministry.

The total number of active cases in the country, therefore, stands at 41,472.

The number of deaths in the country due to the infection reached 2,109 on Sunday.

While Maharashtra, with 20,228 cases is the worst-affected state, it is followed by Gujarat with 7,796 and the national capital, Delhi, with 6,542 cases. Tamil Nadu, is marginally behind Delhi with 6,535 cases.

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News Network
July 18,2020

Washington, Jul 18: The Foreign Direct Investment (FDI) from the US to India has crossed the $40 billion mark so far this year, reflecting the growing confidence of American companies in the country, the head of an India-centric business advocacy group has said.

The American companies, during the Covid-19 pandemic, which has battered the world economy, have shown great confidence in India and its leadership, said Mukesh Aghi, president of the US-India Strategic and Partnership Forum (USISPF), which keeps a track of the major US FDIs in India.

“Year to date investment from the US, including the recent ones, is over $40 billion,” Aghi said.

In recent weeks alone, the announcement of the FDI into India has been over $20 billion, he said, referring to the announcements made by some of the top companies like Google, Facebook and Walmart.

“Investors’ confidence in India is high. India still remains a very promising market for global investors. If you look at the $20 billion… not just the US, but (investment) has also come from other geographies such as the Middle East and the Far East.

“So, India still remains a very, very bullish market for the investor community,” Aghi said in response to a question.

The USISPF has been working with New Delhi to bring in FDI into India… playing a key role in encouraging American companies planning to move their bases out of China, he said, adding that the move was going on in the last three years of the Trump administration, but gained momentum during the coronavirus pandemic.

“We feel that Prime Minister (Narendra Modi’s) intention is very high. The challenges lie on the execution side. Efforts are being made to encourage manufacturing… I've never seen it so better. The policy framework is moving in the right direction,” he said.

Early this week, Larry Kudlow, the White House Economic Advisor, told reporters that the US tech giants like Google and Facebook announcing big investments in India shows that people are losing trust in China and India is emerging as a big competitor.

At the same time, he rued that India continues to be a protectionist country.

“The question is how do you define protectionism... the administration here is saying America first and India is saying vocal for local…,” Aghi added.

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