AI may cut PLI of mid, lower-level employees too

Mumbai: After cutting productivity-linked incentives (PLI) of more than 7,000 officers, Air India (AI) is now planning to cut such incentives of the remaining 23,000 mid- and lower-level unionised employees, as higher costs and unviable routes take a toll on the national carrier. According to people familiar with the development, AI has had informal negotiations with the unions.
Implementing such a decision could pose a challenge for the AI board and management, as these 23,000 employees are affiliated to different unions and there may be widespread protests across the country. An email query sent to AI didn’t elicit any response. Unions have already warned AI not to cut PLI of its mid-level employees.
AI has a cost structure in which salaries and wages constituting 35% of the total operating costs. AI is targeting a reduction in employee cost of around Rs 500-800 crore. Its current annual employee cost is nearly Rs 3,000 crore.
28/09/09 Mithun Roy/Economic Times

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Categories: Air India - International Sep 2009, Air India Domestic Sep 2009, NACIL Sep 2009