Sick leave protests and pay cuts: The new airline saga

The incidents have been a major source of embarrassment for both IndiGo and the DGCA, both of whom have attempted to assuage the employees

Earlier this month, cabin crew members of low-cost carrier IndiGo went on a mass 'sick leave' on July 2, ostensibly going for an Air India recruitment drive instead of checking into work. A week later, the maintenance staff of the airline decided to take a mass sick leave in protest against low salaries.

The incidents have been a major source of embarrassment for both IndiGo and the Directorate General of Civil Aviation (DGCA), both of whom have attempted to assuage the employees - and here is what we know about the incidents:

Which airlines have seen mass sick leaves?

Aside from the cabin and maintenance crew of IndiGo, a significant section of Go First aircraft maintenance technicians went on sick leaves in the last week to protest their low salaries.

A few days after the IndiGo protest, PTI reported that some of Go First's technicians also went on sick leaves, having written e-mails to the airline's management asking it to increase their salaries.

No other airline has reported a mass sick leave so far.

Were similar protests held in the past?

In April, IndiGo had suspended a few pilots who were planning to organise a strike on Tuesday to protest against the pay cuts that were implemented during the peak of the Covid-19 pandemic.

The pilots were planning the strike in protest against the company offering ESOPs to top management cadre dating back from 2019, and offering just a restoration of 8 per cent salary and a conditional assurance of a further 6.5 per cent restoration in November, against a pay cut of as much as 30 per cent in the height of the pandemic.

How have airlines responded to the protest?

During the April incident, IndiGo CEO Ronjoy Dutta had said that raising salaries is a difficult and thorny issue but IndiGo will constantly review and adjust wages based on its profitability and the competitive environment.

Dutta had cited the rising cost of aviation turbine fuel (ATF) as a direct pain point for the company's operational costs. "The general perception is that we can simply pass through the cost of higher fuel by charging more from the customer. The truth, however, is that as we raise fares fewer people choose to travel, so beyond a certain point higher ticket prices actually result in a decline of revenues," he had said.

As for the protests in July, the company said that it will "rationalise" the salaries of maintenance staff and remove "anomalies cause by the pandemic."

"I am apprised of a few of your concerns about salary increases and I understand that during the last two years we have not been able to revise your compensation in accordance with historical levels," IndiGo's Senior Vice President (Engineering) SC Gupta noted in internal communication.

"I have reviewed this with our Leadership and our HR Group and I am pleased to share that we have an agreement on rationalising the anomalies caused by the pandemic. The letters reflecting this rationalisation will be issued to you over the next two weeks and will be with effect from August 1, 2022," he mentioned.

The company has, however, started disciplinary proceedings against the maintenance staff who went on sick leave, asking the technicians concerned to report to the airline's doctor, along with necessary medical documents, so that the carrier can verify if they were actually sick.

On the other hand, Go First clarified that clarify that there has been no general protest/agitation by technicians. "There are a few technicians who were absent for 2-3 days. We are in constant discussion with our employees, explaining the present situation and addressing all concerns if any," a company spokesperson said, adding that it has reinstated employees from 'leave without pay' to normal working conditions and restored salaries to pre-Covid level since August/September 2021.

What is the DGCA's reaction to the mass sick leaves?

The DGCA has expressed concern over the mass sick leaves, saying that it is closely monitoring the situation. "As of now, operations are normal. Hopefully, it will be resolved shortly," the regulator said in a statement.