Air India does away with performance-linked incentives
New Delhi:
Air India on Thursday decided to do away with performance-linked incentives (PLI) as part of pay and wage rationalisation exercise as per the report of Justice Dharmadhikari Committee.
However, the airline has decided to introduce Profit or Productivity Related Pay (PRP) in place of PLI for its employees.
The employees of Air India would now get their salary and allowances as per the Department of Public Enterprises (DPE) guidelines from July 1 onwards.
However, for payment of flying allowances and some other allowances to pilots, engineers and cabin crews as per the industry standard, the Civil Aviation Ministry would approach the Union Cabinet, a Civil Aviation Ministry spokesperson said.
"In view of the acceptance of the Justice Dharmadhikari Committee Report on pay and wage rationalisation of Air India by the Civil Aviation Minister Ajit Singh, it has been decided to discontinue payment of productivity linked incentives (PLI) to the employees of Air India with effect from July 1," the spokesperson said.
Rationalisation of pay and wages was one of the key recommendations of Justice Dharmadhikari Committee report, as the cash-strapped national carrier, which got a Rs. 30,000-crore equity infusion from the government for nine years, had a wage bill of Rs. 3,200 crore of which around 50 per cent constituted PLI and flying allowances of the employees.
PRP would be determined on the achievement of Key Performance Indicators (KPIs) like yield, aircraft utilisation, passenger load factor, on-time performance and revenue achievement and it will be given only after the Company starts making profit," the spokesperson said.
The announcement of doing away of PLI has brought mixed reaction from the various section of Air India employees.
An employee, related to erstwhile Indian Airlines, said they would be consulting the lawyer on the issue of having different set of salaries for different types of employees.
"We would be examining the decision legally as how in a company two sets of emloyees would get two types of salary," an Air India employees said on condition of anonymity.
Another union leader, however, welcomed the move and said they won't be hit hard due to PLI cut as it would be just five per cent below their present salary.
The Air India management has constituted an Implementation-cum-Anomalies Rectification Committee for implementation of pay and allowances to its employees on the basis of recommendation of Dharmadhikari Committee Report.
This exercise is expected to be completed by the end of next month, the spokesperson said.
The employees of Air India would now get their salary and allowances as per the Department of Public Enterprises (DPE) guidelines from July 1 onwards.
However, for payment of flying allowances and some other allowances to pilots, engineers and cabin crews as per the industry standard, the Civil Aviation Ministry would approach the Union Cabinet, a Civil Aviation Ministry spokesperson said.
"In view of the acceptance of the Justice Dharmadhikari Committee Report on pay and wage rationalisation of Air India by the Civil Aviation Minister Ajit Singh, it has been decided to discontinue payment of productivity linked incentives (PLI) to the employees of Air India with effect from July 1," the spokesperson said.
Rationalisation of pay and wages was one of the key recommendations of Justice Dharmadhikari Committee report, as the cash-strapped national carrier, which got a Rs. 30,000-crore equity infusion from the government for nine years, had a wage bill of Rs. 3,200 crore of which around 50 per cent constituted PLI and flying allowances of the employees.
PRP would be determined on the achievement of Key Performance Indicators (KPIs) like yield, aircraft utilisation, passenger load factor, on-time performance and revenue achievement and it will be given only after the Company starts making profit," the spokesperson said.
The announcement of doing away of PLI has brought mixed reaction from the various section of Air India employees.
An employee, related to erstwhile Indian Airlines, said they would be consulting the lawyer on the issue of having different set of salaries for different types of employees.
"We would be examining the decision legally as how in a company two sets of emloyees would get two types of salary," an Air India employees said on condition of anonymity.
Another union leader, however, welcomed the move and said they won't be hit hard due to PLI cut as it would be just five per cent below their present salary.
The Air India management has constituted an Implementation-cum-Anomalies Rectification Committee for implementation of pay and allowances to its employees on the basis of recommendation of Dharmadhikari Committee Report.
This exercise is expected to be completed by the end of next month, the spokesperson said.
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