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AI engineers challenge merger

business Updated: Jul 27, 2007 04:13 IST
Air India

The Air India Aircraft Engineers’ Association (AIAEA) has challenged the amalgamation of Air India Limited and Indian Airlines Limited with the National Aviation Company of India Limited. AIAEA has put forth its challenge before the Ministry of Company Affairs.

It has claimed that since it is a part of Air India, therefore, a unilateral decision of the merger suffers from legal infirmity.

Advocate M L Lahoty who has filed the petition on behalf of AIAEA explains: “A specific section of the Companies Act states categorically that before such a merger the creditors should be heard to safeguard their interest. As the consent has not been obtained, the scheme of amalgamation is, legally, not permissible.”

The organisation has also urged the Ministry to resolve two pending issues between the Air India management and employees. The management had accepted the charter of demand (COD) in 1997 that spoke of the wage settlement scheme for the employees. It had also asked for and accepted a review and payment of productivity linked incentive.

However, despite the acceptance, the Air India management has failed to expedite the wage negotiations that are pending for the past 10 years.

This non-payment of substantial dues, AIAEA says, makes its members creditors of Air India and their consent to the terms of the scheme is mandatory.

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