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Business News/ News / India/  Air India staff must have job security, says Committee
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Air India staff must have job security, says Committee

Panel suggests job security for existing permanent staff till their retirement
  • panel suggested rules for leave encashment, gratuity, staff housing before the divestment process is completed
  • The committee also said Air India must pay all arrears to its staff in line with a Supreme Court ruling (Photo: Mint)Premium
    The committee also said Air India must pay all arrears to its staff in line with a Supreme Court ruling (Photo: Mint)

    NEW DELHI : The committee created to address employee issues at Air India has suggested that permanent staff have to be given job security till retirement, placing a human resource hurdle before potential bidders for the national carrier.

    The committee also suggested rules for leave encashment, gratuity, staff housing, reservation for promotion and recruitment, arrears and medical benefits and a revision in pay scale before the divestment process is completed. The panel was constituted in January to look into HR issues in view of the proposed divestment of Air India.

    Mint has reviewed a copy of the committee’s report.

    Air India has 9,426 permanent workers, 4,201 contract employees and 2,867 employees on deputation.

    “The issue (on job security) was deliberated upon and it was felt by the committee representatives that job security must be provided to all employees till their age of superannuation," the report said.

    “This is because the last induction of permanent employees was carried out in 2011-2012, particularly in the pilots and cabin crew cadre. It was, therefore, felt that for employees in the younger age bracket, job security is also important till the age of superannuation."

    Alternatively, employees should be given a voluntary retirement option, it added.

    “A proposal in line with the wage revision undertaken in Airports Authority of India (AAI) would be submitted to MoCA (ministry of civil aviation) for consideration," it added.

    It said that leave encashments should be made to all employees before the divestment, while existing medical schemes for both serving and retired employees, and company accommodation till retirement should continue. That apart, scheduled castes, schedule tribes and other backward castes must get reservation benefits for promotions and recruitment. The panel said Air India must pay all arrears to its staff in line with a Supreme Court ruling. “Arrears of 25% of salary and flight allowance, along with interest as ordered by Honorable Supreme Court (is) to be paid before 17 March 2020, the last date for the submission of expression of interest."

    The Bharatiya Janata Party government hopes to divest its entire stake in Air India. Last month, the government invited offers from investors for the stake sale, after the failure of an expensive turnaround plan and an effort to sell a controlling stake in the national carrier. To sweeten the deal, the Centre has also reduced the airline’s debt from about 56,334 crore to about 23,287 crore.

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    Updated: 28 Feb 2020, 11:21 PM IST
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