Air India May Shed 7,000 Jobs as Workers Retire, Union Says

National Aviation Co. of India Ltd., the state-owned parent of Air India, may shed as many as 7,000 jobs through retirements over the next three years as it seeks its first profit, according to the company’s biggest union.
About 9,000 workers will probably retire in the period of whom only 2,000 may be replaced, George Abraham, the Aviation Industry Employees’ Guild’s general secretary, said by phone yesterday from Mumbai. Some of the other retirees will likely be replaced by new hires at suppliers and ventures, he said.
National Aviation’s board is due to discuss a restructuring plan on July 25 and paring some of the more than 30,000 workers may help in meeting a government-set cost-cutting target. The company has been unprofitable every year since its formation in 2007 as it struggles to combine two carriers and loses customers to Jet Airways (India) Ltd. and Kingfisher Airlines Ltd.
About half of National Aviation’s workforce will reach the retirement age of 60 years old, over the next five years, said Abraham, who will address the July 25 board meeting. The union has a “progressive” attitude toward restructuring, he said.
22/07/10 Siddharth Philip/Bloomberg

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Categories: NACIL Jul 2010