Airports authority to cut wage bill by Rs 300 crore

Following in the footsteps of Air India, Airports Authority of India (AAI) has decided to slash its wage bill by Rs 300 crore.
As part of its austerity measures, the government-owned airport operator has cut over-time payments; out-of pocket expenses, travel and hotel stay allowances to its personnel.
“The officials have been asked to travel by trains instead of airlines. Our hotel stay has been reduced. For employees, particularly deployed at the airports in services such as fire, the over-time money has been reduced,” said an AAI official, who did not wish to be named. AAI at present has 19,573 employees and it annual wage bill is about 1,087 crore. The paid allowances and other staff bills add another Rs 374 crore. The official said the idea was to save a large chunk of the Rs 374 crore.
Another official, who confirmed the cost cutting measures, said the organisation might also freeze appointment of new executive directors (EDs) and filling up vacancies at higher echelons. “They (AAI) need to control their wage cost. For this, they may do away with the system of having two-three EDs for the same departments. There will be no job cuts but they may reshuffle the staff from one department to another and may not hire new people,” said another official.
21/07/09 Parul Chhaparia/mydigitalfc.com

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Categories: Airports Jul 2009