'Air India's VRS offer may be too ambitious'

Air India's hopes of slashing 5,000 jobs through a voluntary retirement scheme (VRS) may be too ambitious, say experts and union leaders. The airline would need about Rs 700 crore (Rs 7 billion) to put the offer together, and it is yet to secure the finance ministry's approval for this.
The airline had earlier said it would offer VRS to all employees, excluding pilots, technical staff, engineers and cabin crew, who were aged more than 40 and had completed 15 years of continuous service in the airline.
AI has 31,000 employees on its rolls and a wage bill Rs 3,100 crore (Rs 31 billion) a year.
Under the VRS scheme, which the airline says is more attractive than the VRS offer in 2003, AI employees would be offered compensation equivalent to the salary for 35 days for each completed year of service and compensation equivalent to the salary for 25 days for every year of service remaining.
17/07/12 Rediff.com

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Categories: Air India Jul 2012