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2012 Kingfisher Airlines Employees Strike

Kingfisher Airlines

Employees Strike

The Kingfisher Airlines has not paid salaries to some of its staff for over seven months since March 2012. The Airlines staff and engineers entered a strike on October 1, 2012. Since the engineers have to certify the air worthiness of a flight before it takes off, the Kingfisher Airlines had to cancel over 20 flights. On the same day, Civil Aviation minister Ajit Singh has said that the airline will not be allowed to fly if safety norms are not followed. The Aviation regulator DGCA has also summoned Kingfisher Airlines CEO Sanjay Agarwal in the backdrop of the cancellation of 20 flights.

Kingfisher Airlines is in talks with Air India, IndiGo and Jet Airways to get its aircraft certified for air worthiness by their engineers for flying. The Civil Aviation ministry has warned Kingfisher Airlines that action will be initiated if the Airlines doesn't stick with its schedule or if it violates safety norms.

Partial Lock-out

Kingfisher Airlines has announced a partial lockout effective immediately on October 2, 2012. In a statement, the Airlines said that they were forced to declare a partial lock-out following a series of protracted and unabated incidents of violence, criminal intimidation, assault, wrongful restraint and other illegal acts including refraining from attending work, by a small section of recalcitrant employees. The airlines have also suspended operations until October 4, 2012.

Kingfisher Airlines CEO Sanjay Agarwal met the Director General of Civil Aviation on 2 Oct 2012 and promised to resume operations by October 5. The Airlines said that they are confident that the Income Tax department will defreeze its accounts and would release Rs. 60 crore, which would help pay the salaries to its staff that was due.

Lock-out extended till October 7

Kingfisher Airlines has extended the partial lockout till October 12 (Friday) after the second round of talks between the striking employees and the Kingfisher management on 4 Oct 2012, in Delhi has failed. The meeting was chaired by Kingfisher Airlines CEO Sanjay Agarwal. The management has offered to pay the salary of March and the remaining six months salary would be paid once the Airlines is recapitalized. The offered was rejected by the striking employees.

State Bank of India to release 80 per cent funds

On 5 October 2012, State Bank of India announced that it plans to release 80 per cent of the funds released by the tax authorities to Kingfisher Airlines on humanitarian grounds for the payment of salaries to its staff.

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