Banks can lend to pay Jet Airways salaries: AIBEA


Chennai, Apr 22 (IANS): The banks can lend some money to Jet Airways specifically for the purpose of paying employee salaries, a major bank employees' union official said on Monday.

This amount can be lent by the consortium of lenders to the financially crippled Jet Airways on lien against the airline employees' provident fund balance or gratuity, C.H. Venkatachalam, the General Secretary of the All India Bank Employees' Association (AIBEA), the largest union in the banking sector, told IANS.

"The consortium of banks not extending further financial assistance to Jet Airways is right. However, the banks can extend a loan to Jet Airways only for the purpose of paying the salaries to employees," he said.

"Since the future of the Jet Airways is not clear, banks should clearly mention that the money lent is to be used only for payment of staff salaries subject to banks having a lien on the airline employees final dues like provident fund, gratuity."

According to Venkatachalam, if the airline gets a new promoter and continues to employ the staff, then the sum lent by the banks towards paying salaries can be recovered.

"If there are no buyers for the airline, then the bank dues have to be settled by the airlines first before making the final settlement to their employees," he added.

National Aviators Guild (NAG), which is the pilots' union of Jet Airways, has said that a sum of Rs 175 crore is needed to pay employee salaries. The NAG, however, has not volunteered to take any pay cuts.

"The banks need not be concerned about how much should be paid as that is between the Jet Airways management and the employees. However, banks need not pay for the full salaries, but only towards some subsistence allowance on humanitarian consideration," Venkatachalam said.

He also said the salaries can be paid for the months the Jet Airways was operational, and there need not be any payment for the period after the airline was grounded last Thursday.

"Our stand is that workers should not be left in the lurch. If some money is lent to Jet Airways towards staff salaries then it could be a precedent," Venkatachalam added.

  

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Comment on this article

  • Rita, Germany

    Mon, Apr 22 2019

    I dont understand the logic behind this .Banks can lend money to pay their salarys and employees are not workig during this time.How long can a bank pay to them and employees have still no future?Why did the SBI didnt pay the promised amount that time towards the loan?

    DisAgree Agree Reply Report Abuse

  • MohammedMangaluru, Mangaluru

    Mon, Apr 22 2019

    To over come losses government or any other provider should not come o the rescue as it is solely responsible of owners who has to invest and clear their debt and clear all pending salaries of employees.

    DisAgree Agree [4] Reply Report Abuse

  • Sethu, Mangalore

    Mon, Apr 22 2019

    I grossly fail to understand what is the locus standi of AIBEA, a trade union of bank employees with left leanings, in the jet Airways issue. If this trade union want to improve their base, it shall happen at their exclusive effort. Mr. Venkatachalam has no common sense and seems to be having acute dyslexia and autism. How the lender can release further loan on an NPA exclusively for releasing salary of the employees of the firm which is heading towards liquidation. This fool want to keep a dangerous precedence so that such precedence can be cited in future cases also to win the hearts of employees for exclusive purpose of improving their membership base at somebodies expenses....!This type of trade union leaders is a burden to society.

    DisAgree Agree [3] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Apr 22 2019

    Naresh Goel can become another Vijay Mallya.
    CBI should investigate what Naresh Goel did with all the Jet Airways Money ...

    DisAgree Agree [10] Reply Report Abuse


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