New Delhi: Realising that a turnaround of Air India was not possible without cutting its Rs 3,600 crore annual wage bill, a group of ministers (GoM) chaired by Pranab Mukherjee has asked the airline to offer an attractive voluntary retirement scheme (VRS) that can be part-funded by the government.
While the exact contours of voluntary retirement scheme (VRS) are yet to be worked out by the airline, the scheme would aim at taking at least 4,000 staff off company rolls, an airline executive present at the GoM meeting told The Indian Express. The decision taken in the GoM meeting held on October 28, would be sent to the Cabinet for its final approval.
“In line with the group of officers recommendations on the proposed turnaround plan of the airline, the Group of Ministers has asked the airline to formulate a Voluntary Retirement Scheme (VRS). The government has assured us, if necessary, it will subsidise the VRS package through equity infusion,” said the executive. While no concrete estimates have been drawn, a former executive director said a “golden handshake” could cost up to Rs 400 crore.
10/11/11 Smita Aggarwal/Indian Express
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment