Airline raised Rs 3,000 crore, enabling the clearance of long standing arrears
Dues clearance has brought relief to employees. Representation Pic
Spicejet has recently deposited 10 months’ worth of pending Provident Fund (PF) dues for its employees, addressing growing dissatisfaction among staff who had seen deductions from their salaries without corresponding deposits to their accounts. This announcement follows the airline’s recent settlement of all Goods and Services Tax (GST) payments and outstanding salary arrears.
ADVERTISEMENT
“SpiceJet is pleased to announce that within the first week of raising fresh funds through a Qualified Institutional Placement (QIP), the airline has cleared all pending salary and GST dues and has made significant progress by depositing ten months of PF dues. The process of clearing other outstanding dues is ongoing,” said a spokesperson of the airline.
This development comes after SpiceJet raised Rs 3,000 crore through a QIP. A Chartered Accountant, speaking on the condition of anonymity, said, “A QIP allows a listed company to quickly raise capital by issuing securities to select qualified investors without the need for extensive pre-issue filings to the Securities and Exchange Board of India (SEBI). Qualified investors include public financial institutions, scheduled commercial banks, mutual funds, insurance companies, foreign portfolio Investors and Foreign institutional investors.”
Earlier, mid-day coverage highlighted a trend in which employees were left uncertain about their hard-earned savings, contributing to operational inefficiencies and employee dissatisfaction that affected passenger services. mid-day in its report “SpiceJet staffers ask, ‘PF is deducted from our salaries, but where is it going?’” highlighted the issue of PF being deducted from the salaries of the employees but not being credited to their PF account.
An industry analyst from the Ministry of Civil Aviation, on condition of anonymity, said, “If the employees in a customer-oriented industry are not happy, the customers suffer. Delayed salaries or disputes regarding financial matters can lead to decreased employee morale and performance, ultimately impacting the quality of service for passengers. However, with the clearing of pending salaries and PF dues, employee morale should improve significantly, leading to better customer service.”
A SpiceJet employee confirmed that pending salaries have now been addressed, stating, “It’s a relief for all of us. We were worried about our bills and the pending salaries, but now we can at least make ends meet. It’s not just about paying bills; it’s about survival. We need a certain amount in our accounts for emergencies, and many of us were on the verge of exhausting our backup funds. Some might have even had to dip into their savings.”
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
