The government pumped in Rs1,200 crore as equity in cash-strapped Air India (AI) on Monday (June 04, 2012). The airline will now pay Rs250 crore as salary to all employees by tomorrow (June 05, 2012) - except the 400-odd pilots of erstwhile AI, who have been on strike since May 7. The rest will be used to pay vendor dues. With the latest infusion, the Maharaja has got Rs1,867 crore as equity this fiscal.
'We will use Rs150 crore from the equity infusion and Rs100 crore from our ticket sales to pay the performance-linked allowance and allowances for the month of February and basic salary of March, 2012, to the employees by tomorrow. The rest will be used to partially clear the airport, oil and tax dues,' said a senior official. An AI pilot, who is still flying, said the move to deny pay to the striking Indian Pilots' Guild (IPG) may create more problems. 'Everyone has been working without pay for months. The period for which AI is now planning to pay is when IPG's striking members were also flying and there's no reason why they should not be paid,' the pilot said.
AI's executive pilots have had hectic parleys since last week when the government declared that the Dharmadhikari committee report will be implemented.
Since the aviation ministry has not made the report public and no one knows its exact implication for different sections of employees, erstwhile AI pilots are apprehensive they may have to take a 30% cut.
This fear comes from two reasons: The ministry says AI pilots are the highest paid pilots in the world and salaries need to be brought in line with industry norms. Because of this fear and now non-payment to striking IPG members, the 100-odd executive pilots of erstwhile AI who are still flying, while their IPG juniors have been on strike for almost a month now, may have a rethink.
'This is the first time a strike has been allowed to go on for so long,' the pilot said. On its part, the ministry and management say the handling of the current crisis is an indication that with Rs30,000 crore of tax payers' money being committed to save the airline, no indiscipline will now be tolerated from the employees.
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'We will use Rs150 crore from the equity infusion and Rs100 crore from our ticket sales to pay the performance-linked allowance and allowances for the month of February and basic salary of March, 2012, to the employees by tomorrow. The rest will be used to partially clear the airport, oil and tax dues,' said a senior official. An AI pilot, who is still flying, said the move to deny pay to the striking Indian Pilots' Guild (IPG) may create more problems. 'Everyone has been working without pay for months. The period for which AI is now planning to pay is when IPG's striking members were also flying and there's no reason why they should not be paid,' the pilot said.
AI's executive pilots have had hectic parleys since last week when the government declared that the Dharmadhikari committee report will be implemented.
Since the aviation ministry has not made the report public and no one knows its exact implication for different sections of employees, erstwhile AI pilots are apprehensive they may have to take a 30% cut.
This fear comes from two reasons: The ministry says AI pilots are the highest paid pilots in the world and salaries need to be brought in line with industry norms. Because of this fear and now non-payment to striking IPG members, the 100-odd executive pilots of erstwhile AI who are still flying, while their IPG juniors have been on strike for almost a month now, may have a rethink.
'This is the first time a strike has been allowed to go on for so long,' the pilot said. On its part, the ministry and management say the handling of the current crisis is an indication that with Rs30,000 crore of tax payers' money being committed to save the airline, no indiscipline will now be tolerated from the employees.
....more info