AI proposes 50 pc cut in incentives

Mumbai: Air India’s board on Thursday announced that employees of the carrier would take a 50 per cent cut in their productivity-linked incentives (PLI) in order to cut costs for the cash-strapped carrier.
The move will help the airline save around Rs 675 crore annually as the overall expenditure on salaries of the airline with an employee strength of 31,000 is about Rs 3,000 crore, of which PLIs are roughly 45 per cent.
Sources confirmed to The Indian Express that the aim was to prune manpower costs by at least Rs 500 crore. The reduction in PLIs of employees is also part of the larger plan to be submitted to the government to secure funds for the carrier.
Sources familiar with the happenings at the meeting told The Indian Express that the airline had been instructed by the PMO to reduce its wage bill and as a result the cut in PLI of employees has been announced.
The Air India board also decided that an alternative to the reduction in PLIs of employees will be announced in the next three months.
21/08/09 Shashank Shekhar/Indian Express

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Categories: NACIL Aug 2009