AI board okays pay cut affecting nearly a fourth of all staffers

New Delhi: The board of directors of National Aviation Company Ltd, which runs Air India, today approved a productivity-linked incentive (PLI) cut of up to 50 per cent for all officers, including top management.
The cut, approved at its meeting in Mumbai, will be effective from PLI payable for August onwards and over 7,000 of the 31,000 employees will be affected.
The decision is a compromise on the earlier proposal from the management for a 50 per cent cut in PLI across the board, something opposed by the employee unions.
AI’s annual wage bill is Rs 3,100 crore, of which 40 per cent is the PLI component. The earlier 50 per cent cut would have saved the airline over Rs 600 crore annually. Its spokesperson declined to comment on the amount they will now be able to save.
However, sources in the industry say the amount would be much lower now and could also impact the airline’s plan to save Rs 1,000 crore annually.
“The cut, applicable to all officers, including top management personnel, in various management disciplines, will range from 25 per cent for those getting PLI of Rs 10,000 or less per month and 50 per cent for those receiving PLI or flying related allowances of Rs 2 lakh or more per month,” said a release from the airline.
24/09/09 Business Standard

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Categories: NACIL Sep 2009