Air India set to tweak performance pay
But the PLI is going to be revised downward by August 20 by a four-member committee set up to reduce the annual wage bill of Rs 3,100 crore, with PLI accounting for nearly half of this amount, by Rs 500 crore.
By Saurabh Sinha, TNN |
NEW DELHI: In a major costcutting move, the Air India-Indian Airlines combine has decided to take a relook at the performance-linked incentive (PLI) of its employees, which at senior levels can account for anywhere up to 70-80 % of the total pay package. So the 31,000-strong company will give the salary on time in August unlike this month when the same was delayed by 10-14 days.
But the PLI is going to be revised downward by August 20 by a four-member committee set up to reduce the annual wage bill of Rs 3,100 crore, with PLI accounting for nearly half of this amount, by Rs 500 crore.
Meanwhile, in a first the national carrier has for the first time decided to withdraw the free flights and medical facilities given to former employees who have joined a rival airline or any rival business . A large number of former AI, IA employees are in private airlines. ���One can���t travel on AI and do someone else���s (rival airline���s ) work. Also you can���t be working for a rival and putting the medical bill on AI. All other retired employees who are not working for competing business will enjoy these facilities like always,��� AI spokesperson Jitendra Bhargava said.
This issue came to light recently when a senior aviation ministry mandarin met the chief troubleshooter of a private airline at Delhi airport. That person���s bags had IA tags. ���When we asked him how come he was flying IA while being a senior person in a private airline, he told us as ex-IA employee, he was entitled to free flights for life. This practice needed to be stopped. A former CMD tried doing it but was not able to. Now in this belt-tightening season, this malpractice has been finally stopped,��� said sources.
AI-IA have for years been paying huge amount of performance-linked incentive that at senior levels accounts for 70-80 % of a total package. For instance, the GM (operations ) has a basic monthly pay of Rs 66,817 that���s topped by a PLI of Rs 510,175 that takes emoluments to a Rs 576,992. So, the airline���s decision to prune annual wage bill by Rs 500 crore has brought the PLI into focus. A final decision on the new, and reduced, PLIs would be taken by August 20.
But the PLI is going to be revised downward by August 20 by a four-member committee set up to reduce the annual wage bill of Rs 3,100 crore, with PLI accounting for nearly half of this amount, by Rs 500 crore.
Meanwhile, in a first the national carrier has for the first time decided to withdraw the free flights and medical facilities given to former employees who have joined a rival airline or any rival business . A large number of former AI, IA employees are in private airlines. ���One can���t travel on AI and do someone else���s (rival airline���s ) work. Also you can���t be working for a rival and putting the medical bill on AI. All other retired employees who are not working for competing business will enjoy these facilities like always,��� AI spokesperson Jitendra Bhargava said.
This issue came to light recently when a senior aviation ministry mandarin met the chief troubleshooter of a private airline at Delhi airport. That person���s bags had IA tags. ���When we asked him how come he was flying IA while being a senior person in a private airline, he told us as ex-IA employee, he was entitled to free flights for life. This practice needed to be stopped. A former CMD tried doing it but was not able to. Now in this belt-tightening season, this malpractice has been finally stopped,��� said sources.
AI-IA have for years been paying huge amount of performance-linked incentive that at senior levels accounts for 70-80 % of a total package. For instance, the GM (operations ) has a basic monthly pay of Rs 66,817 that���s topped by a PLI of Rs 510,175 that takes emoluments to a Rs 576,992. So, the airline���s decision to prune annual wage bill by Rs 500 crore has brought the PLI into focus. A final decision on the new, and reduced, PLIs would be taken by August 20.
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