Air India may go slow on staff incentive scheme issue

Kolkata/New Delhi: The Air India management plans to temporarily push back its planned reduction in the productivity linked incentive scheme being paid to its 31,500 employees.
Sources said that the decision was being considered in view of the festival season ahead. The Chairman and Managing Director has also been advised to look at taking the workforce along right now, they added, pointing out that the forthcoming elections to three State assemblies could also be a consideration.
In the airline, PLI forms a large portion of the employees’ monthly salary with the organisation incurring an expenditure of about Rs 350 crore on account of wages and PLI.
There were also reports of the Railway Minister, Ms Mamata Banerjee, a key ally of the Government, speaking to the Finance Minister and requesting that the PLI for the AI employees not be cut during the forthcoming festival season.
Meanwhile, on Thursday, a board meeting of the airline scheduled to be held at 3 p.m. was postponed by four days. This led to speculation that the AI management had decided to go slow on the PLI issue.
17/09/09 Santanu Sanyal/Ashwini Phadnis/BusinessLine

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Categories: NACIL Sep 2009