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Air Mauritius: New Contracts That Make People Nervous

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With the approach of the reopening of the borders, nearly 250 employees of Air Mauritius have been offered new contracts signed by Arvindsingh K. Gukhool, one of the directors of the company. As a reminder, Air Mauritius, has been placed under voluntary administration since April 22, 2020.

For the majority of these 250 employees of the flight crew, ranging from ‘Cabin Crews’ to pilots, a clause raises concern.

This clause stipulates that over the next 36 months, any employee, including flight crews, could be placed on Leave Without Pay for a period of 18 months by order of the voluntary administrators.

Air Mauritius Centre

The administrators said in the letter that the provisions made in this new contract will try to allow the national airline to implement a restructuring to better cope with this situation, still dominated by the global pandemic.

The administrator gave the reasons for their decision, namely that the company is insolvent. It has no money to repay its debts in the normal course of business. Indeed, Air Mauritius does not have money to pay all its creditors if they demand their payments.

It was stressed that the aim of the directors is to try to save Air Mauritius and a rescue plan for the company will be presented at the next Watershed Meeting. If the plan is not endorsed by the creditors, the aviation company may end up in liquidation.

The employees concerned by the new contract have until this Friday to sign it.

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