We may have to retrench, A-I chief warns unions

All-night meeting ends in stalemate; no decision on incentive pay

In a clear challenge to the 14 unions of Air India representing over 32,000 employees, the management has made it clear that it might consider various stringent options, including laying off employees and cutting routes to keep the airline airborne.

This was the focus of a marathon meeting between the unions and Air India Chairman and Managing Director Arvind Jadhav that began yesterday evening and finished early this morning. The unions were protesting against a management decision to cut productivity linked incentive (PLI) almost 50 per cent, a move that would save the government-owned airline Rs 770 crore. The airline made a Rs 5,000-crore loss last fiscal and faces a Rs 2,400 crore loss this year if a cost-cutting programme is not put in place.

Confirming the development, Air India spokesperson Jitendra Bhargava said: "We discussed many options with the unions and said there was no option but to cut costs, otherwise we have to take action like lay-offs or cutting of flights and many more.”

Unions, however, denied reports that the management talked tough. "The chairman said he wanted us to commit to some cut in PLI, so that he could go to the government and get a bailout financial package," said Dinakar Shetty, president of the Air Corporation Employees Union, which claims to be one of the largest unions.

"However, he was willing to look at different levels of PLI for different employees. But we made it clear that the cut was not acceptable to us," Shetty added.

A senior member of the All India Aircraft Engineering Association said, "It's not true that we were threatened. The CMD said he would meet us in two or three days and constitute a four-member committee from the management with officials from the industrial relations department and that committee will discuss the PLI issue."

In an effort to placate the unions, the management yesterday also decided to pay employees their August salaries on time. July salaries have not been paid yet and senior officials did not take their salaries at Jadhav's request.

Yesterday, some of the airline’s 14 unions went on a relay hunger strike across the country in protest against the management’s decision to cut its PLI scheme. Other unions are considering legal action against the management for breaking the wage agreements with the unions.

Also read:
August 26: Air India to pay August salaries on time