Monday, 21 May 2012

No More PLI for Air India Staff


NEW DELHI: Air India staff should get prepared to forego their Productivity Linked Incentive (PLI) very soon, Civil Aviation Minister Ajit Singh said at a meeting with the AI unions on Monday.
The meeting with the unions was perhaps called with this one agenda to impress upon the AI workforce that until the national carrier starts making profit, there will be no PLIs and that the unions should not resort to agitations in resistance. Singh also discussed the turnaround plan and the implementation of the Dharmadikari report with the 22 representatives who met him on Monday.
While promising promotions that had been frozen for sometime now, Singh sought the unity of the employees taking the example of Japan Airlines that had made losses of `120,000 crore in 2010 and yet made profit of `12,000 crore in 2011.
“The minister basically wanted to tell the unions that they were formed for a grievance redressal system and should not resort to methods of agitation to fulfil their demands. He also sought their cooperation in accepting that there will be no PLIs once the D report is implemented,” ministry official said.
The current union of pilots which is on strike was neither invited nor represented at this meeting. Even the erstwhile pilots of Indian Airlines who were represented under the Indian Commercial Pilots Association union apparently didn’t disagree with the PLI proposal. Air India spends almost `2,000 crore every year in PLIs.
The minister also stated that none of the employees will be sacked. “The merged entities had 34,000 people initially. Today just because of attrition the workforce is 27,000. We are counting on this attrition to save our wage bills, without sacking anyone,” the AI official said.
Arun Kumar, General Secretary of the Air Corporation Employees Union (ACEU) told media that their proposal was to merge the PLI with their basic pay and give a neutralised salary. “PLI is linked to profits. When the PLI agreement was signed in 1999, the erstwhile Indian Airlines was breaking-even by selling 19,000 seats per day. Today the two merged entities selling 40,000 seats/day is also not achieving this. So how can there be a PLI,” he said.
ACEU forms 80% of the workforce at the ground staff and cabin crew level. Their PLI is mostly 60-70% of the basic pay, hence the dependence on the PLI component is not huge. It’s the senior categories that draw almost 900% in PLIs that will take the beating in this move. “A DGM level officer, for example, draws a basic pay of `50,000 but gets PLI of `1.5-2lakh. It does not make sense,”Arun said.
Meanwhile, the situation on the Air India pilots’ strike remained stagnant.

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