The first Sign of recession:

Sad news started coming from the Aviation Industry. Which is throwing  a clear signal of start of a recession for the Indian Economy.So far this kind of news have never took up so seriously. But this news has a significant impact and a bad Oman and the effect can cascade for the other Industries as well.

There are around 1900 jet Cabin crew and some pilots include in the list. The decision of sacking the employees looks so rude and tough If we think about the employees point of view. This action could be triggered and given Confidence to the Jet management because of the operational alliance they had with King Fisher airlines.

The top management spoke’s man Datta has told that the decision is inevitable and to safeguard the interest of the remaining employees. One way that is true.  

Viewing this issue beyond the employees sentiments. There are reasons to justify this decision. If we digg back past and see some of the old economy companies in the steel industry .When the industry was in the down turn the company has accumulated with severe losses and  some companies could not find a way to revive and only some of the big player have survived. Already the airline Industry has started bleeding. The low cost carrier model wont going to work .As it is difficult to maintain the cost .There is no other way of to over come this climate as the Financial Giants like Lehman and BSMA are falling.

The decision is ruthless but correct decision for the survival of the Industry. But the concern is the same effect will cascade to the hospitality Industry also. Sequentially start feel the heat in the IT and BPO segments also.

I remember sometimes back NarayanaMurthy has mentioned about the importance of saving money to the IT professionals. I think it is not late atleast the professional should caution and save enough Cash reserve in their bank account.

At times of recession it has always been proved that Cash and Gold are the saviors of those tough situations.   

 

Mike

Post :Dt 16/10/2008

 

Naresh Goyal decide to reinstate 1900 employees Back

Naresh Goyal decides to reinstate the Jet employees back mentioning that he is taking the decision based on his conscience and not on the pressure from inside or outside the management.He is treating the employees as his members of family and took a decision.

There is a slight controversy the Unioin minsiter says after he spoke to Naresh Goyal he re considererd this decision

The Jet employees started agitating against the decision of retrenchment.This agitatated employees should not turn against him personally to follow the Delhi example happened in the past.

The other way to think off  this issue is  crisis is a crisis .In this kind of situation building a confidence and trust to the employees should be more important.Like Infosys did it in dot com bubble.The fact is country like India is not prepared to accept such ruthless decisions.