Bipin Shah   Self Employed
NEW DELHI: It could well have been a dark Diwali for the employees of Air India-Indian Airlines combine, especially its pilots.

The airline management sent a letter to employees on Friday, saying that their basic salary would be paid on November 1. But their performance-linked incentive and flying allowances, which account for over 70-80% of a pilots's total salary, would be deferred
by a fortnight.

This caused an uproar among employees. The Indian Commercial Pilots' Association immediately wrote to airline CMD Arvind Jadhav, asking him why fresh appointments of COOs and other positions were being made with annual salaries running in several lakhs and even crores. The pilots threatened to resort to "no pay, no work".

Sensing trouble in ranks and that too at a time when Parliament would be in session from early November, aviation minister Praful Patel is learnt to have ordered the management to immediately withdraw this order. "AI will be paying salary for October on November 1 and flying allowances and PLI three days later," a ministry spokesperson said.

Clearly, the last thing the aviation ministry wanted is a strike in the airline when it is trying to get Rs 1,200 crore as equity from the government next month and is also pushing for an additional infusion of Rs 2,000 crore. Moreover, a strike at a time when Parliament is in session could have spelt more heat on AI issue for Patel.

Last year too the management had cut salaries of some pilots around this time only that had led to a strike following which the order was withdrawn. This time too the airline gave a cash crunch as the reason for the deferment of pay.

"The postponement has been necessitated due to committed month-end payments to oil companies, aircraft project/spare part payments, bank loan rollovers, repayment of loans and interest obligations," the airline's letter to its employees said.
Oct 23rd 2010 06:17