With Air India pilots still on strike,the government announced Friday that beginning mid-July,it would implement uniform pay scales,promotions,level-mapping and career progression for the airlines 30,000 employees.
Civil Aviation Minister Ajit Singh anounced a roadmap based on recommendations of the Justice Dharmadhikari Committee,which includes a 10-15 per cent cut in salaries of pilots,engineers and cabin crew in line with industry benchmarks. As reported by The Indian Express on May 17,pilots,engineers and technicians will,however,follow two separate lines of seniority as prevalent in Indian Airlines and Air India.
The government has also decided to abolish the controversial productivity-linked incentives,which account for up to 80 per cent of the total compensation drawn by pilots.
A member of the striking Indian Pilots Guild conceded that the governments announcement had pushed (them) further into a corner. The report seems to be highly biased. We have serious reservations. With whom are they going to discuss the concerns that we have? he said.
The guild,a union of pre-merger Air India pilots,was de-recognised during the ongoing strike,and 101 members,including ten leaders,sacked.
Singh said savings on account of wage restructuring are expected to be Rs 250 crore in the first year on an annual wage bill of Rs 3,200 crore. The report addresses the pending issues arising after the merger (of Indian Airlines with Air India)… One thing is clear. The government will not put any more public money into the carrier, he said.
The government has set a target of three months for implementing the Dhamadhikari recommendations. The ministy will approach the Cabinet Committee on Economic Affairs (CCEA) with a proposal related to restructuring the salaries of pilots,engineers and cabin crew. We will have to seek a dispensation from the CCEA as their allowances are higher than 5 per cent of the basic salary,as allowed by the Department of Public Enterprises, Singh said.
For all other categories,the bulk of the PLI would be subsumed in their basic salary. A voluntary retirement scheme (VRS) to downsize at least 10 per cent of manpower would be offered soon,which may cost the company around Rs 200 crore.
Putting to rest the controversy over the training of Indian Airlines pilots on the Dreamliner aircraft ordered by pre-merger Air India,the report has said that the entire manpower,including pilots,should be cross-utilised. Pilots of pre-merger Air India belonging to the IPG struck work on May 8 protesting the managements decision to send their counterparts from Indian Airlines for Dreamliner training.
The implementation of the report would render the existing wage agreements signed between the management and over a dozen unions of the airline null and void,said a senior ministry official. The report has advocated a profit-related pay (PRP),which would kick in only after the airline turns profitable by 2018,as per the turnaround plan. The government has set up a four-member implementation committee,headed by Syed Nasir Ali,director,civil aviation ministry,to work out the modalities by holding talks with unions and employees,take their concerns on board and address any anomalies that may arise during the implementation.
The Dharmadhikari committee has decided April 1,2007 as the cut-off date for the purpose of implementing new payscales. The new HR integration plan,as recommended by the committee,was recently accepted by the government.