Incentive cuts finalised for Air India staff

The board of the state-run Air India on Wednesday approved recommendations by a committee headed by director (personnel) Anup Srivastava to cut 25-50% of employees’ performance linked incentives (PLI), depending on the total amount they draw.

About 7,000 employees, including pilots, directors, cabin crew and senior officials, fall under this category, an Air India official said. The airline has a strength of 32,000 employees.

“The cut is applicable to all officers, including the top management, in various disciplines,” the airline said.

The deduction will range from 25% for those getting a PLI of Rs10,000 or less per month and 50% for those receiving a PLI or flying related allowances of Rs2 lakh or more per month.

“Also, employees receiving a PLI of Rs10,001 to Rs25,000, Rs25,001 to Rs50,000 and Rs50,001 to Rs2 lakh will see cuts of 35%, 40% and 45%, respectively,” the airline said.  The cut will be effective from the PLI payable August 2009 onwards.
However, sources said the committee is yet to decide on pay cuts for junior and lower level staff. The board will work out the details by October 15.

The airline pays about Rs1,500 crore as PLI to its employees and has a wage bill of Rs3,600 crore; with the PLI deductions Air India will save Rs750 crore a year. The policy comes a month after the employees’ union had opposed the management’s initial decision.