Air India on Friday mentioned its monetary state of affairs may be very difficult as a result of coronavirus pandemic and its leave-without-pay (LWP) scheme for workers is a “win-win” state of affairs for them in addition to the administration.
The nationwide service, in a press assertion, mentioned the scheme primarily allows workers 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 workers, based mostly on numerous components like effectivity, well being and redundancy, who shall be despatched on obligatory LWP for as much as 5 years.
“Air India is in a really difficult monetary state of affairs and is taking recourse to a number of initiatives with a view to making sure the continuance of its operations,” the airline mentioned within the assertion.
“The LWP scheme is a win-win state of affairs for each the administration in addition to workers because it offers flexibility to workers and concurrently reduces the wage invoice for the corporate,” it added.
Beneath this scheme, the airline mentioned, the administration can cross an order requiring the workers to compulsorily go on depart for a interval of six months or two years (extendable as much as 5).
Workers shall 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 mentioned.
Air India mentioned, “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 mentioned the administration will guarantee that the scheme is carried out with full equity and transparency as per the prescribed process.
The airline mentioned it had introduced related LWP schemes earlier in September 1998, June 2009 and August 2009. Nonetheless, these schemes didn’t have the supply of the administration sending workers on obligatory LWP, it added.
“A number of hundred workers have prior 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 employees.
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 service’s web loss in 2018-19 was round Rs eight,500 crore.
Civil Aviation Minister Hardeep Singh Puri on Thursday mentioned 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 on account of journey restrictions imposed in India and different nations in view of the coronavirus pandemic. All airways in India have taken cost-cutting measures resembling pay cuts, LWP and firing workers with a purpose to preserve money move.