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New Delhi:
Air India on Friday stated its monetary scenario could be very difficult as a result of coronavirus pandemic and its leave-without-pay (LWP) scheme for workers is a “win-win” scenario for them in addition to the administration.
The nationwide provider, in a press assertion, stated the scheme primarily allows workers to proceed on LWP “on voluntary basis”.
The airline had issued an inside order on Tuesday asking its departmental heads and regional administrators to determine workers, based mostly on varied components like effectivity, well being and redundancy, who might be despatched on obligatory LWP for as much as 5 years.
“Air India is in a very challenging financial situation and is taking recourse to several initiatives with a view to ensuring the continuance of its operations,” the airline stated within the assertion.
“The LWP scheme is a win-win situation for both the management as well as employees as it provides flexibility to employees and simultaneously reduces the wage bill for the company,” it added.
Under this scheme, the airline stated, the administration can cross an order requiring the staff to compulsorily go on depart for a interval of six months or two years (extendable as much as 5).
Employees might be chosen for the obligatory LWP provision taking into account suitability, effectivity, competence, high quality of efficiency, well being, non-availability and redundancy, it had stated.
Air India stated, “The provision has been introduced for use, very sparingly, with a view to ensure that the overall efficiency of the organisation improves.”
It stated the administration will guarantee that the scheme is carried out with full equity and transparency as per the prescribed process.
The airline stated it had introduced related LWP schemes earlier in September 1998, June 2009 and August 2009. However, these schemes didn’t have the supply of the administration sending workers on obligatory LWP, it added.
“Several hundred employees have in the past availed of the LWP scheme,” the airline famous.
On Thursday, TMC MP Derek O’Brien slammed Air India, saying its LWP scheme violates labour legal guidelines and is an “obvious ploy” to guard the highest administration and sacrifice different staff.
The airline has a debt of round Rs 70,000 crore and the federal government began the method to promote it to a non-public entity in January this yr. The nationwide provider’s internet loss in 2018-19 was round Rs 8,500 crore.
Civil Aviation Minister Hardeep Singh Puri on Thursday stated fairness infusion of Rs 500-600 crore yearly just isn’t sustainable and cost-cutting in Air India is important.
The aviation sector has been considerably impacted as a result of journey restrictions imposed in India and different nations in view of the coronavirus pandemic. All airways in India have taken cost-cutting measures equivalent to pay cuts, LWP and firing workers to be able to preserve money move.
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