Tuesday, 17 April 2012

AI unions want to meet Ajit Singh, warn of stir


Air India staff unions have sought a meeting with Civil Aviation Minister Ajit Singh on their objections to the separation of engineering and ground handling departments into separate companies. 

Last week, the Cabinet cleared this decision, which aims to reduce the ailing government carrier?s wage bill and also create two new profit centres. However, eight employee unions are resisting the move and are against taking transfer to the new entities ? AI Air Transport Services Ltd and AI Engineering Services Ltd. 
Representatives of the eight unions met here on Monday to discuss the implications. ?We may resort to industrial action. It is a question of 19,000 employees and we will not take things lying down,?' said a member of one union. They are to meet again on Thursday. He added the minister was yet to meet all the unions, three months after he took charge. 

AI expects the engineering company to service its fleet and get other business, generating profit of Rs 2,000 crore after five years. 

The management expects the engineering company?s wage costs to reduce over the next four years, following the retirement of existing staff. 

The unions, however, say the hiving-off decision is not a viable idea and are prepared to explain why they think so. 

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