AI retracts order to delay incentives

New Delhi: Air India management sent a letter to employees on Friday, saying that their basic salary would be paid on November 1. But their performance-linked incentive and flying allowances, which account for over 70-80% of a pilots's total salary, would be deferred
by a fortnight. This caused an uproar among employees. The Indian Commercial Pilots' Association immediately wrote to airline CMD Arvind Jadhav, asking him why fresh appointments of COOs and other positions were being made with annual salaries running in several lakhs and even crores. The pilots threatened to resort to "no pay, no work".
Sensing trouble in ranks and that too at a time when Parliament would be in session from early November, aviation minister Praful Patel is learnt to have ordered the management to immediately withdraw this order. "AI will be paying salary for October on November 1 and flying allowances and PLI three days later," a ministry spokesperson said.
Clearly, the last thing the aviation ministry wanted is a strike in the airline when it is trying to get Rs 1,200 crore as equity from the government next month and is also pushing for an additional infusion of Rs 2,000 crore.
23/10/10 Times of India

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Categories: NACIL Oct 2010