AI-IA merger in trouble

New Delhi/Mumbai: The merger between Indian Airlines (IA) and Air-India (A-I), due in August, has hit a roadblock with the major IA unions opposing it on grounds that the government has been unable to resolve key issues - lack of parity in career progression and salary with A-I employees and arrears of over Rs 800 crore from 1997.
The unions have threatened a strike if these issues are not settled before the merger deadline.
Leading associations of IA - the Indian Airlines Commercial Pilots' Association (ICPA), All India Aircraft Engineers' Association (AIAEA), Indian Aircraft Technicians' Association (IATA), Indian Airlines Officers' Association (IAOA) and Air Corporation Employees' Union (ACEU)- met A-I Chairman and Managing Director V Thulasidas and the IA management led by Managing Director Vishwapati Trivedi on Monday.
The IA unions say an A-I engineer is promoted far faster (two years, against six years in IA in comparable grades). They also point out that the engineer-to-aircraft ratio of 9:1 is well below industry standards of 12:1.
IA pilots say they join at a lower grade and train for six years with a stipend before making it as captain, the starting designation for A-I pilots. Also, there are disparities in salaries.
Except the ACEU all the other unions say they have ten years of arrears starting November 1997, which amount to more than Rs 800 crore.
25/07/07 Anirban Chowdhury & P R Sanjai/Business Standard

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Categories: Air India Jul 2007, Indian Jul 2007