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HRM Review Magazine:
Jet Airways' Labor Dispute: Trade Unions and India's Labor Conundrum
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Disputes in domestic and multinational companies in India are on a rise since 2008. Citing a plethora of faults with employers, the labor community, represented by various organizations ranging from local trade unions to officers' associations have engaged in many strikes and protests. While Jet Airways' pilots went on a strike for five days, there were millions of passengers who landed up in trouble. The results? Bad reputation for both—the company and the employees plus great monetary loss. While India's age-old labor laws stand safeguarding the interests of the supposedly less powerful `employee' community with a few amendments over the years, ironically, the labor unrest is growing in the country. Is it time to modify India's labor laws? Who is on the wrong side, employees or employers? The case study deals with the labor laws in India and its effect and influence in the modern day trade unions and businesses. Explaining the case of Jet Airways labor dispute in 2009, the case brings in the issues of increasing labor discontent and makes a case for why a major reform in labor legislations is required.

 
 
 

On September 8, 2009, around 650 pilots of Jet Airways, India's largest private airline company, took a mass sick leave as a protest against the management that sacked two of its pilots for joining a union. The pilots' union named National Aviators Guild (NAG), was formed in August 2009. Thousands of passengers were stranded because of the flash strike which lasted five days and forced the management to cancel around 900 flights. The strike is an added woe to the already ailing Indian aviation industry. But surprisingly, aviation industry is not the only industry which suffered from labor discontent in recent times. Multinational companies in India—Nestle, Hyundai and others—also suffered from similar labor disputes adversely affecting their operations. As Indian economy bets heavily on labor-intensive service industry, India's age-old labor laws might need a modification.

Indian labor knew nothing about rights except duties, spending long years under British rule. Colonial labor legislation highly leaned towards British employers that reminded them of duties rather than rights. Though the legislations have undergone vast changes during the post-colonialism era, the basic discontent of labor does not end, or that is what the labor disputes' history in India suggests.

 
 
 

HRM Review Magazine, Multinational Companies, All India Trade Union Congress, AITUC, Non-cooperation Movement, Indian National Congress, Social Developmental Processes, Labor Legislation, International Monetary Fund, IMF, Clothing Sector, Business Process Outsourcing, BPO, Industrial Sectors, Government Policies.