The Hindu : National : AI enters into 10-year wage pact

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Friday, Jul 22, 2005

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National

AI enters into 10-year wage pact

MUMBAI: Air India has entered into a 10-year wage agreement with two employee unions. It would cost the airline Rs. 44 crores per annum towards increased wages and allowances.

Under the MoU signed with the AI Employees Guild and the AI Employees Union and approved by the board at its meeting in New Delhi on Tuesday, the unions representing more than 8,000 workers belonging to the technical, clerical and allied categories agreed to outsourcing of non-core activities and improvement in productivity parameters.

The unions also agreed to abolition of restrictive and unproductive work practices, the AI said in a release here on Wednesday. The agreement came after negotiations with the union in December last year following the approval of the Administrative Ministry.

One of the conditions for commencement of the negotiations was that the company had to be profit-making for the last three years and this was fulfilled by AI.

The state-run airliner would initiate negotiations with other eight unions based on the guidelines issued by the Department of Public Enterprises, an AI official said. Arrears from January 1, 1997 would be paid in phases.

The additional financial impact as a result of hike in pay would be offset by improvement in productivity parameters and outsourcing of activities to outside agencies and subsidiary companies. — PTI

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