We may have to retrench, A-I chief warns unions

In a clear challenge to the 14 unions of Air India representing over 32,000 employees, the management has made it clear that it might consider various stringent options, including laying off employees and cutting routes to keep the airline airborne.
This was the focus of a marathon meeting between the unions and Air India Chairman and Managing Director Arvind Jadhav that began yesterday evening and finished early this morning. The unions were protesting against a management decision to cut productivity linked incentive (PLI) almost 50 per cent, a move that would save the government-owned airline Rs 770 crore. The airline made a Rs 5,000-crore loss last fiscal and faces a Rs 2,400 crore loss this year if a cost-cutting programme is not put in place.
Confirming the development, Air India spokesperson Jitendra Bhargava said: "We discussed many options with the unions and said there was no option but to cut costs, otherwise we have to take action like lay-offs or cutting of flights and many more.”
Unions, however, denied reports that the management talked tough. "The chairman said he wanted us to commit to some cut in PLI, so that he could go to the government and get a bailout financial package," said Dinakar Shetty, president of the Air Corporation Employees Union, which claims to be one of the largest unions.
27/08/09 Business Standard

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Categories: NACIL Aug 2009