Sunday, April 22, 2012

New wage system for AI, no productivity-linked incentive

New Delhi: The civil aviation ministry has decided to overhaul the pay structure of Air India employees by scrapping the contentious productivity-linked incentive (PLI) remuneration structure, which constitutes the bulk of salary.
The new structure, meant to reduce the salary bill, will be based on Public Enterprises Selection Board (PESB) guidelines. However, the would not lead to a major salary reduction, as a wage revision is due.
The ministry has decided to restructure the airline’s top management by creating a post of joint managing director, who would be an Indian Administrative Services (IAS) officer, to monitor implementation of the still incomplete integration of the erstwhile Air India and Indian Airlines.
It has decided to prune the number of executive directors (20 at present) and ensure multitasking.
Many of these decisions have been suggested by the Justice Dharmadhikari committee formed last year to recommend ways to integrate the employees of the erstwhile Air India and India Airlines.
Civil Aviation Minister Ajit Singh confirmed the implementation of the committee report. “We have accepted the recommendations of the Justice Dharmadhikari committee and the salaries of Air India employees will be in accordance with PESB guidelines and will not constitute PLIs. The implementation of the report will begin soon,” he said.
23/04/12 Mihir Mishra/Business Standard
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