Click to play videoNew Delhi: The Union Government says it will not interfere in a private airline's internal matter.
"Jet is a private airline. This (retrenchment of employees) is their internal matter and the government cannot interfere in this matter. The airlines must decide the policies they need to follow to remain competitive," Union Minister of State (Independent Charge) for Science and Technology and Ocean Development Kapil Sibal said on Thursday.
Sibal, however, said the government was “worried” about the crisis facing the aviation industry.
Sibal said the government was taking several measures to deal with the current financial situation. "Our banks are taking lots of steps and we are giving assurance that people's money is safe in banks," he said.
Union Labour Minister Oscar Fernandes, too, said his ministry was looking into the issue of mass retrenchment by Jet Airways.
“There is a problem in the aviation industry specifically Jet. Definitely we are looking into that. I have already spoken to Chief Labour Commissioner and we are looking into the matter. I have already asked the Chief Labour Commissioner to submit a report,” Fernandes said.
The Chief Labour Commissioner's office has already asked Jet Airways to submit a report on details of the 850 employees who have been retrenched by Jet Airways.
The airline has already announced that 1,100 more job are going to be cut.
Meanwhile, Petroleum and Natural Gas Minister Murli Deora criticised Jet Airways' decision to lay-off employees, saying the timing of the decision was in bad taste.
"This is not the right time to retrench people, particularly before Diwali. I do not approve of such a move and you cannot just do such a thing," Deora said.
Petroleum Secretary RS Pandey also pointed out that the airline had defaulted on payment of fuel bills to oil companies and owed them Rs 259 crore.
The airline, which is battling to survive the downturn in the industry, has handed out the pink slip to 1,900 employees, mostly cabin crew - which it expected to result in savings of $1 million a month. The airline has also struck an operational alliance with Kingfisher Airlines.
Deora said he would "appeal to (Jet chief Naresh) Goyal to please not resort to such extreme steps."
Earlier, Civil Aviation Minister Praful Patel said: "I sympathise with those young boys and girls who lost their jobs. I will talk to all airlines to see that such large scale loss of jobs does not happen and try to find a way out."
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