Air India on Friday stated its monetary scenario may 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 staff to proceed on LWP “on voluntary foundation”.
The airline had issued an inner order on Tuesday asking its departmental heads and regional administrators to establish staff, primarily based on numerous elements like effectivity, well being and redundancy, who can be despatched on obligatory LWP for as much as 5 years.
“Air India is in a really difficult monetary scenario and is taking recourse to a number of initiatives with a view to making sure the continuance of its operations,” the airline stated within the assertion.
“The LWP scheme is a win-win scenario for each the administration in addition to staff because it supplies flexibility to staff and concurrently reduces the wage invoice for the corporate,” it added.
Below this scheme, the airline stated, the administration can move an order requiring the workers to compulsorily go on depart for a interval of six months or two years (extendable as much as 5).
Staff can be chosen for the obligatory LWP provision making an allowance for suitability, effectivity, competence, high quality of efficiency, well being, non-availability and redundancy, it had stated.
Air India stated, “The supply has been launched to be used, very sparingly, with a view to make sure that the general effectivity of the organisation improves.”
It stated the administration will be sure that the scheme is applied 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. Nonetheless, these schemes didn’t have the availability of the administration sending staff on obligatory LWP, it added.
“A number of hundred staff have up to now 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 “apparent 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 personal entity in January this yr. The nationwide provider’s web 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 isn’t sustainable and cost-cutting in Air India is important.
The aviation sector has been considerably impacted because of journey restrictions imposed in India and different international locations in view of the coronavirus pandemic. All airways in India have taken cost-cutting measures corresponding to pay cuts, LWP and firing staff as a way to preserve money circulation.