A Year in India


Jet Airways Drama
October 17, 2008, 10:36 am
Filed under: Culture | Tags:
Jet Airways protest

Jet Airways protest

Yesterday, India’s Jet Airways laid off nearly 1,000 people.  In a mix of political unrest, mass protests, and “tears in my eyes” language from the airline’s chairman, Jet reinstated all of the employees this morning.  Looks like the political pressure and the protests trumped the company’s economic needs.

The buzz around Bangalore is that this kind of action is typically “Indian” in nature.  That is, the fear of public unrest often overrides what might be practical (ie, economically sensible).  This approach has immediate benefits for the people who would’ve been left jobless, but the question remains whether it’s a positive, efficient step as Jet looks farther ahead.  (This perspective might be too American too apply in this country, though!)  Maybe, then, the question isn’t whether or not these people should have been laid off, but how companies like Jet should approach retrenchment (eg, development of a better policy for tranisitoning people out).

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1 Comment so far
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This is a bad for business and employment both. It is a lose lose situation. Companies will be loath to hire anyone, thereby lakhs of jobs will no longer be created. Companies will shy away from setting up in India. If employees can resign and go anytime, why can’t an employer ask a employee to leave?

Comment by Roshan




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