Thursday, October 17, 2019

Air India buyer may be allowed to retrench staff in a year

New Delhi: The government is considering a plan to make Air India more attractive for potential buyers by allowing employees to be retrenched a year after divestment, said people aware of the matter.
“There are the two proposals being discussed — one is to allow them to retrench after one year and the other is to give three years,” said one of them. “It would make sense to allow future owners to retrench staff after a year’s time.”
 Another person said the government will ensure that the interests of employees are protected. “There would be conditions like employees can only be retrenched through the government’s voluntary retirement scheme (VRS),” he said.
 Under VRS, an employee gets an amount that’s equivalent to monthly salary multiplied by either the years of service completed or those left, whichever is less, along with other compensation that the person is eligible for, said the people cited above.
 Any move to allow future promoters to terminate the jobs of employees will mark a key change in last year’s failed divestment process, when the government had promised job protection. All proposals are being discussed and will be put before the committee led by home minister Amit Shah for consideration, said the people cited above.
 17/10/19 Mihir Mishra/Economic Times
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