Categories: Business

Air India has a challenging situation, top management says no pay leave beneficial to all

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Air India Says Leave Without Pay Scheme Win-Win For Airline, Staff

new Delhi. National aviation company Air India has stated that its financial position is quite challenging and the No Pay Leave (LWP) scheme is a benefit situation for both employees and management. Air India said in a statement that the scheme primarily relates to sending employees to the LWP on a voluntary basis. Earlier on Tuesday, the airline issued an internal order asking all departmental heads and regional directors to identify the employees for the scheme.

Employees are to be identified according to efficiency, health and additional numbers. The laid off employees will be compulsorily sent on leave for five years. The statement said that Air India's financial position is quite challenging and the airline is taking several initiatives to sustain its operations.

The airline stated that the LWP scheme is of benefit to the management as well as to the employees. This will provide flexibility to the employees and reduce the salary bill of the airline. Air India said that by issuing orders under this scheme, management can mandatorily ask its employees to go on unpaid leave for six to two years. This period can be extended to five years.

The statement said that employees would be selected on the basis of efficiency, competence, adaptability, performance, health, non-availability and in some places having additional staff. Civil Aviation Minister Hardeep Singh Puri has also justified Air India's decision to send some of its employees on five-year unpaid leave. Puri said that equity investment of Rs 500-600 crore every year in Air India is not affordable and Air India will have to take cost-cutting measures.

Trinamool Congress MP Derek O'Brien criticized Air India for saying that its Leave Without Pay scheme is a violation of labor laws and is in a way a plan to save top management and sacrifice employees.

This post was published on July 18, 2020 8:41 am

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