Air India Leave Without Pay offer to 1500 employees:Is it an Indirect Lay off Job Cut ?

16 October, 2008

Another bad news for the Aviation sector employees. Yesterday, it was the Jet Airways which went for lay off 1900 employees, before that, it was Kingfisher Airlines which has declared Kingfisher Lay off and now, the government owned Air india has decided to offer Leave Without Pay for more than 15000 employees for a period of 3 to 5 years.

Isn't this an indirect Lay off or Job Cut by Air India?.

This news has sent ripples of fear among the employees of the state owned aviation company. On one hand, employees were expecting good salary since their government sector jobs made them happy about the implementations of the Sixth Pay Commission. And now, since there will be Leave Without Pay, so no pay, so no increased salary. Indeed, Bad, Bad and Bad times.

As per CMD of AIr India, Mr. Raghu Menon - "We are planning to offer leave without pay for three to five years. We can consider it for about 15,000 employees".

He, however, said those who take up the offer to go on leave would be taken back if they desire so at the same seniority and last drawn pay. Though this is only a proposal and has to be presented to the company board for its approval before it is implemented, but the happenings in the world financial markets and the latest one being the Jet Airways Lay offs in India, has sent worrying ripples among the Air India Employees.

The government yesterday had, however, ruled out any job cuts in Air India with the civil aviation minister Praful Patel assuring employees that there were no plans to prune staff strength immediately.

As per the news, The 77-year-old state carrier, which initiated a fleet renewal programme three years ago and merged with its sister airline Indian last year, has proposed infusion of Rs 1,000-1,500 crore of equity capital. It is also looking at soft loans of Rs 1,000 crore from government that can be repaid over a period of time. According to industry experts the coming together of Jet and Kingfisher could further mount the problems for Air India.

Lets hope that all goes well for the affected Air India Employees and alternative jobs may be available to them during these times of crisis.


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