Loss-making Air India on Wednesday spared lower level employees as its board approved cuts of up to 50 per cent in productivity linked incentives (PLI) and allowances of its executives including pilots and cabin crew in a graded manner.
The state-owned airline said its board accepted the recommendations of a committee to review incentives. About 7,000 of the airline’s 31,500 staff will be affected by the decision that partially restores an across-the-board cut that was reversed in August after howls of protest.
Two key unions are against wage cuts. The cut, applicable to all officers, will range from 25 per cent for those getting incentives of Rs10,000 or less per month and 50 per cent for those receiving PLI or flying related allowances of Rs 2 lakh or more per month.
The cut for those receiving PLI of Rs 10,001 to Rs 25,000, Rs 25,001 to Rs 50,000 and Rs 50,001 to Rs 2.00 lakh will be 35, 40 and 45 per cent, respectively.
The cut, a condition to help Air India get a bailout from the government, will be retrospectively effective from August.
“We have gone for a graded reduction in perks and are yet to calculate the savings,” said an Air India spokesperson.
“We have not got any thing in writing so far so I can’t comment. But pilots who are in the union will not accept any cut in flying allowances because our flying hours have been reduced substantially,” said captain RS Otaal, general secretary, Indian Commercial Pilots Association.
“Deduction in wages is out of question. We are well within the limits as per the government guidelines,” said Vivek Rao, secretary, Air Corporation Employees Union.