The High Court had on January 27 declined to stay the implementation of the report.
A four-member panel headed by former Supreme Court judge Justice D M Dharmadhikari had in January 2012 submitted its report on the integration of about 29,000 employees of unified Air India, including pilots, cabin crew and engineers and had suggested measures, including salary rationalisation of staff.
The section says that an employer cannot make changes with respect to service conditions of its employees without serving them a notice of 21 days before making the changes under the Act.
"We are trying to find a way out," the bench said during the hearing when Additional Solicitor General L Nageshwar Rao, appearing for the Centre, said the financial position of the national career was not good.
Senior advocate Harish Salve, appearing for one of the parties, said, "Air India, which purchased aircraft worth nearly Rs 50,000 crore, is forcing employees to accept pay cuts. Private airlines are paying more to pilots."
Earlier, the court had issued notices on the appeals and cross appeals of the Air India and others.
The pleas have been filed by Air India Management and workers' unions against the order of the Bombay High Court which dealt with various contentious issues arising out of the Dharmadhikari report on the merger.
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