Air India review meet today to find formula for wage rationalisation

Mumbai: Within a week of conducting a comprehensive review of Air India, civil aviation minister Praful Patel will be in Mumbai again today for yet another review.
According to sources, the minister is likely to take up the issue of working out a new formula to rationalise wages.
Patel is believed to have presented a formula for wage rationalisation in his meeting with heavy industries minister Vilasrao Deshmukh last month, but Deshmukh wanted information from “a back date.”
“Deshmukh wanted details of how the wage rationalisation would be done, what formula would be used for the plan to freeze promotions and arrear payments for three years and how will performance linked bonuses be slashed. The heavy industries ministry wants Air India to work out a formula on back dates also… the minister is expected to discuss this with the AI management,” a source said.
Patel’s other request — of not dragging AI’s case to the Board for Reconstruction of Public Sector Enterprises (BRPSE) — is also being reviewed by Deshmukh’s ministry.
Patel’s emphasis on working out a new wage rationalisation formula for Air India assumes significance since there is also talk of the national carrier setting up an HR committee to prepare a document covering compensation, ranks and work profile for its 30,000 odd employees.
08/01/11 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Air India Jan 2011