Why Did SpiceJet Employees Go On Strike In Delhi?

Friday saw around 150 SpiceJet employees walk out of Delhi Airport on strike against airline management. The strike is a culmination of months of unpaid dues, which has led to several confrontations over the last year. The dispute was resolved later in the day but left several lingering questions.

SpiceJet, Boeing 737 MAX, Return To Service
SpiceJet has been struggling financially since last year and unable to pay full salaries for months now. Photo: Boeing

Walkout

According to The Indian Express, 150 SpiceJet ground staff employees at Delhi Airport walked out on Friday in a dramatic display. The staffers have said that the strike is a result of the airline failing to pay full salaries and the actual disbursements of paychecks every month. After months of frustration, the ground staff decided to take action and force the airline’s hand.

The gamble seems to have paid off. In a statement, SpiceJet said,

“A section of employees working at the Delhi airport and having some issues have met senior officials and the matter is being resolved.”

According to airport sources, the strike was ended within an hour after staffers met airline management. There was no impact on SpiceJet’s Delhi operations since the strike took place after the employees’ night shifts. The exact details of the agreement are unknown but will likely ensure that all ground staffers are paid more and critically, on time.

Big problems

While salary problems have been prevalent since last year, the issue has been acute since the second wave of cases in the spring. Employees have repeatedly complained of being told a certain salary but actually only receiving 15-20% of that sum. This has led to widespread dissatisfaction with the airline.

The issue extends to seemingly all employees. In particular, pilots have taken a sharp pay decrease. Since last year, SpiceJet is only offering pay per hour flown instead of an actual salary. This makes its pay cuts the worst in the industry, as pointed out by pilot unions of other airlines too. In April and May, SpiceJet “deferred” salaries due to a lack of funds.

SpiceJet 737 Getty
SpiceJet’s losses have continued growing as domestic traffic fell in the spring amid a sharp rise in cases. Photo: Getty Images

It’s important to note that salary cuts are not new in Indian aviation. All Indian airlines have instituted some form of pay reductions to deal with the pandemic. However, SpiceJet’s severe cuts and inability to pay full amounts have made it a subject of protest many times now.

Changing?

The latest protest is unlikely to make a big difference to SpiceJet’s pay structure. The carrier continues to burn millions every month, hurting any major recovery. However, there is some good news on the horizon. This month will see the 737 MAX return to the skies for the first time in 18 months, giving SpiceJet more capacity.

However, this also means no more assumed compensation from Boeing (that has not been paid), leaving a gap in finances. For now, SpiceJet and its employees are all hoping that the airline pulls through this crisis and begins paying full salaries again.

What do you think about SpiceJet’s current situation? Let us know in the comments.



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