Mumbai: National carrier Air India has given a quiet burial to its much-talked about voluntary retirement scheme (VRS) owing to high attrition rate and government's disinclination to provide committed funds due to precarious state of the central finances, say sources.
"It has been decided at the last over-sight meeting that we will not pursue the VRS scheme," Air India sources told PTI.
Air India had in July 2012 approved the VRS package for all its permanent employees who have served for 15 years or are at least 40 years of age.
The now-derailed scheme had expected some 5,000 employees to avail of the package, which was aimed at reducing the huge salary bill - pegged at Rs 3,100 crore this fiscal.
Over the past couple of years, its salary bill has been coming down. In FY12 it was Rs 3,500 crore, which came down to Rs 3,300 crore last fiscal.
05/01/14 PTI/Economic Times
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"It has been decided at the last over-sight meeting that we will not pursue the VRS scheme," Air India sources told PTI.
Air India had in July 2012 approved the VRS package for all its permanent employees who have served for 15 years or are at least 40 years of age.
The now-derailed scheme had expected some 5,000 employees to avail of the package, which was aimed at reducing the huge salary bill - pegged at Rs 3,100 crore this fiscal.
Over the past couple of years, its salary bill has been coming down. In FY12 it was Rs 3,500 crore, which came down to Rs 3,300 crore last fiscal.
05/01/14 PTI/Economic Times
