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AI to introduce pay linked to productivity
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New Delhi: Air India on Thursday decided to do away with performance-linked incentives (PLI) as part of pay and wage rationalization exercise, as per Justice Dharmadhikari Committee report. The airline will introduce profit or productivity related pay (PRP) instead.
Rationalization of pay and wages was one of the key recommendations of Justice Dharmadhikari Committee report, as the cash-strapped national carrier, which got a 30,000 crore equity infusion from the government for nine years, had a wage bill of 3,200 crore of which around 50% cent constituted PLI and flying allowances of employees.
PRP will be determined on the achievement of key performance indicators such as yield, aircraft utilization, passenger load factor, on-time performance and revenue achievement and will be given only after the company starts making profit, the spokesperson added.
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