In a long-pending decision that would reduce the salary packages of some Air India (AI) employees, the government is set to introduce the new pay structure as recommended by the Justice Dharmadhikari Committee as early as August this year.
Though civil aviation minister Ajit Singh maintained that there would be ?no salary cut?, the carrier expects to save R250 crore through this exercise in the first year itself. This means there would be a few employees who would have to settle for lower pay packages.
Singh said that the wage restructuring was a must if the carrier was to survive. ?This is necessary if the merger has to succeed, if the carrier has to survive. The government is giving R30,000 crore… One thing is clear, the government will not give public money any more to Air India,? he told reporters on Friday.
As per the Dharmadhikari committee’s suggestions, for the executive cadre, the pay scales would be as per department of public enterprises (DPE) norms and for the non-executive cadre, it would be in accordance with industry norms. The carrier will abolish the performance-linked incentives (PLIs) and would merge it with the basic pay as per the DPE guidelines.
For some allowances to pilots and crew that are outside the DPE norms, the carrier will obtain permission from the Cabinet. Instead of PLI, it would introduce PRP (profit related pay), which would be given only once the airline starts making profits.
The government has set up another panel called Implementation-cum-Anomaly Committee to implement the recommendations on pay fixation, level-mapping of all employees and promotional avenues. The panel has been given a deadline of 45 days to complete the process. ?We will be patient and persuasive in talking to employees. They will realise their future depends on the future of Air India,? Singh added.
On promotions, the Dharmadhikari Committee has suggested setting up of departmental promotion committees (DPCs) that would include AI and Indian Airlines representatives and an independent expert. Though, pilots and engineers would be given line seniority based on wide and narrow body aircraft for which they are trained and licensed, the committee has recommended the cross-utilisation of resources, including manpower and cross-training at various levels for the merged entity.
?After implementation of the Dharmadhikari Committee report, there will be a unified cadre at every level along with a uniform policy with regard to working hours, passage facility and all other facilities that include accommodation, transportation, canteen, uniforms,? the minister said.
Singh reiterated his stand on the striking pilots and said their demands on career progression can be examined only after they returned to work. ?They should unilaterally call off their strike. The (Delhi) High Court has also said the same thing. It is an illegal strike. We will consider all their demands after they join back,? he added.
The carrier has been losing about Rs 10-15 crore per day due to the IPG (Indian Pilots’ Guild) agitation. The losses are expected to come down to Rs 5 crore as the carrier reduced flights on non-profitable routes. The airline, despite the strike, has managed to fly 38 international flights daily out of 45 scheduled flights. ?The less you fly, the less you lose,? Singh said, adding that the airline was not operating on loss-making routes.
The carrier has already started implementing its loan restructuring plans. It interest outgo per month has come down from Rs 225 crore to Rs 25 crore.
