AI proposes 50% cut in employees' incentives

MUMBAI: The management of cash-strapped Air India has suggested an up to 50 per cent cut from next month in productivity-linked incentive given to employees.

"Air India's Chairman and Managing Director Arvind Jadhav has suggested a 30-50 per cent cut in employees PLI from next month," Bharatkumar Raut, President of Shiv Sena-backed All India Cabin Crew Association (AICCA) told reporters here after a meeting with the NACIL management.

NACIL is the holding company of both Air India and the erstwhile Indian Airlines.

Many employee unions with allegiance to Shiv Sena are, however, opposing the proposal. They include AICCA, Executive Cabin Crew Association, Air India Employees Union, Engineers Association and Bharatiya Kamgar Sena of Indian Airlines. The unions would meet on August 25 to deliberate on the issue.

Raut, also a Rajya Sabha MP belonging to Shiv Sena, said the unions have urged the management to first release arrears before considering any cut in incentives.

"We have not agreed to anything... we will not give up our rights. In any case, it is a deferred salary because they (NACIL management) have not changed the salary structure after every three year. If a cut is implemented, take-home salary of employees would get reduced by nearly 65 per cent," Raut said.

The Shiv Sena-backed unions have taken a conscious decision not to resort to strike because of the crisis Air India is going through, Raut said.

"We will not succumb to the management's pressure tactics. Our demands remain intact," he added.