Thursday, January 26, 2023

Air India staff to get 98 crore shares as employee stock options

As Google, Meta and big tech firms use excessive manpower and wage costs as reasons to justify mass layoffs, one is reminded of Tata Steel's Early Separation Scheme in the 90s, when early exits guaranteed salaries till retirement age for employees. It just stands out among many other schemes implemented by the salt-to-steel conglomerate for employee benefit. The past few years were tough for employees of debt-burdened Air India, but its new owner Tata has set out to reward the staff with stock options.

After implementing an employee stock option (ESOP) scheme at Tata Motors in 2018, the Tata Group has plans to allot 3 per cent of its share capital to Air India employees. Permanent staffers of the airline will be getting 98 crore shares, which won't be owned by them personally, but by a trust. SBI Cap Trustee Company has been roped in to implement this ESOP scheme and assign shares to eligible employees, who can encash them after calculation of fair value by July 2023.

The step is just one among many measures to incentives employees, along with an open communication channel for 7,000 workers and plans to host townhall meetings.

26/01/23 FreePressJournal

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