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This is an archive article published on January 24, 2010

Parl panel flays AI mgt on salary cut proposal

Air India management's proposal to slash the pay package of over 30,000 employees in a bid to reduce costs has come under attack from a parliamentary committee.

Air India management’s proposal to slash the pay package of over 30,000 employees in a bid to reduce costs has come under attack from a parliamentary committee,which has sought payment of all arrears with effect from January 1997.

In its latest report,the Parliamentary Standing Committee on Transport,Tourism and Culture noted that the prime reasons for Air India’s losses were not the employees,but “misplaced” policies of the government.

“The Committee feels that employees are being made scapegoat and cut in their salaries and PLI have become tools in the hands of management in the name of cost cutting/ restructuring,” it said.

“Since all parameters are laid down for PLI payment,the Committee does not see any scope for reduction in PLI of employees,” the panel headed by CPI(M) leader Sitaram Yechury said.

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