Jet Airways's reinstatement of its sacked employees has fuelled angst among corporate India; leading human resource executives are labelling the decision a defeat of professionalism at the altar of populism.
"People touted this as the victory of morality, the common man's win, employees' rights and other such things. In my humble opinion, India Inc has lost again," a leading HR consultant said.
Echoing the sentiment, diversified conglomerate ITC's Human Resource Vice President Anil Sharma said, "How can a company call its sacked employees back to work just 48 hours after they were retrenched by the airline?" He added the decision was really impulsive by a business house, which was trying to survive despite the rising cost burden.
Although the Jet's decision to reinstate the sacked staff has been hailed by the common man, analysts said this would hurt investment sentiments as far as the stocks of the airline company was concerned and, in turn, its shareholders.
"It's good that business houses are thinking of the staff's welfare. Corporates should focus on the human side of their business, but never at the cost of their shareholders," Sharma said.
Jet Airways's shares fell over six per cent on the bourses on Friday, over concerns of the rising cost burden after the employees were called back to work. Besides, corporate industry believes that the decision has brought to light the lack of confidence and the communication gap between the head and the management.
Naresh Goyal had said on Thursday that he was unaware of the decision and that it was taken by his management.
Further, industry people believe the decision was irrational and populist in nature and show the darker side of private businesses in the country. "It's out-and-out eye-wash. Jet couldn't imagine that the sacked employees would to go to ministers and political parties would go to any length to get free publicity and aligning themselves with causes," said an HR executive from a leading IT company.
"It's merely a damage control measure by the company which did not do its prior homework, not anticipating the reaction to be so huge and the media coverage so wide," he added.