Praful warns of possible strike in Air India if wages are recast

New Delhi: Ahead of the crucial Cabinet meet to decide on equity infusion in state-owned Air India, civil aviation minister Praful Patel has cautioned finance minister Pranab Mukherjee that the government must be prepared for a possible strike by the employees of the carrier if wages are rationalised as part of the turnaround plan.
According to government sources, Patel, who met Mukherjee on Monday, also pressed for an additional Rs 3,500 crore succor to help Air India tide over the current crisis. This is in addition to the Rs 1,200 crore equity infusion that the ministry has sought in the Cabinet proposal. “Air India would require Rs 3,500 crore to meet interest payment and other obligations. The finance ministry was informed that small doses of cash would not suffice and the airline needs a single big shot of equity infusion,” said a source.
But the civil aviation ministry’s big worry is that unions may strike work if wages are streamlined. The airline’s previous attempt to slash perks by half backfired when its management-grade non-unionised employees struck work for almost a week.
15/12/10 Smita Aggarwal/Indian Express

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Categories: Air India Dec 2010