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Air India discusses pay cut proposal with employees

News18test sharma |

Updated: June 25, 2009, 10:47 PM IST
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Air India discusses pay cut proposal with employees
Union leaders said they had not accepted the pay cut proposal.

Mumbai: Air India's top management on Thursday discussed with union representatives a proposal to cut salaries of its 31,000 employees, but no decision has been taken, a union leader said.

Chairman and Managing Director (CMD) Arvind Jadhav of the cash-strapped national carrier was present at the meeting.

However, union leaders said they had not accepted the proposal and would meet Jadhav again on Friday to discuss the issue.

"We have an agreement where our salaries cannot be cut. We are meeting our CMD tomorrow (Friday) again. We will suggest other cost-cutting measures in the meeting," said General Secretary of the Air Corp Employees' Union (ACEU) JB Kadian.

Meanwhile, Air India is working on setting up committees that would assess the reasons for the current financial problems of the airline, officials said.

Earlier, the management had announced that it would delay the June salaries of its employees by 15 days.

On Wednesday, Civil Aviation Minister Praful Patel met Prime Minister Manmohan Singh and discussed with him a bailout plan for the airline.

The Prime Minister suggested him to adopt various cost-cutting measures to improve the financial condition of the National Aviation Company India Ltd (NACIL), which owns Air India.

After the meeting, Patel said the Government would support the loss-making carrier, but stopped short of spelling out the size and nature of the package.

Air India, which incurred a loss of Rs 4,000 crore last fiscal, plans to ask for a Rs 10,000-crore (about $2 billion) bailout package from the Central Government.

The Air India Chairman, Civil Aviation Secretary M Madhavan Nambiar and other senior ministry and airline officials had met the Principal Secretary to the Prime Minister, TKA Nair on Monday to discuss the issue.

First Published: June 25, 2009, 10:47 PM IST
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