Air India defers payment of incentives to late Aug

Mumbai: Cash-strapped Air India has deferred productivity-linked incentives, or PLIs, to all its employees until 20 August. In a circular dated 22 July, the national carrier, however, said it will pay salaries for July at the end of the month.
Arvind Jadhav, chairman and managing director of National Aviation Co. of India Ltd, or Nacil, which runs Air India, has directed that PLI norms for the company as a whole be reviewed and PLI parameters be revised, people familiar with the matter said.
The circular said PLI payments would hence be postponed. It also said the payment of the corresponding element of PLI in the flying allowance needs to be postponed.
An Air India spokesperson confirmed the management’s decision to pay the July salary on time. But on PLI payments, the spokesperson said a four-member committee is currently reviewing salary arrangements and PLI.
Nacil’s wage bill stands at about Rs3,000 crore per annum and PLI accounts for almost half of this amount.
PLI for ground handling staff stands at about Rs600 crore per annum, while PLI for pilots, engineers and cabin crew stands at about Rs800 crore per annum.
24/07/09 Swati Khandelwal/CNBC-TV18/Livemint

To Read the News in full at Source, Click the Headline

Categories: NACIL Jul 2009