AI wants to re-negotiate wages

New Delhi: The cash strapped Air India-Indian Airlines wants to renegotiate wages with its 35,000-odd employees and is looking for a clearance from the highest level of government through a more carefully worded cabinet note. Since the issue of wage reduction is a political hot issue, the note prepared for Rs 1,200-crore equity infusion into the carrier has opted for more careful term to re-open wage agreements with unions.
This note has been circulated to the planning commission and the finance ministry for their comments and a final version will be sent to the Cabinet Committee of Economic Affairs next month. "Earlier we were hoping for a 15% saving in the annual Rs 3,500 crore wage bill. Now there are no such targets. We just want political clearance from the highest quarters to renegotiate wages so that this move could be considered if all other moves to augment revenue and cut costs fall short of what's required to save the Maharaja," said sources.
Aviation minister Praful Patel recently ruled out any wage cut for AI employees. AI chief Arvind Jadhav had also ruled out wage cuts in recent media interactions.
24/09/10 Saurabh Sinha/Times of India

To Read the News in full at Source, Click the Headline

Categories: NACIL Sep 2010