Changing its decision twice in as many days, Air India today announced further advancement of the date of payment of allowances to its 29,000 employees, saying these incentives would be disbursed along with the salaries on November 1 itself.
The national carrier had earlier notified the deferment of payment of flying allowances and productivity- linked incentives (PLI) by a fortnight.
Following protests by unions, it last night withdrew its decision and said while the salaries would be paid on November 1, the allowances and PLI would be disbursed on November 4.
Changing its decision on the payment of allowances again today, an airline spokesperson said the salaries, PLI and allowances would be paid together on November 1.
“The salaries and other productivity-link incentives’ flying allowances of the NACIL employees will now be paid on November 1,” an Air India spokesperson said here.
The airline had earlier justified its decision to defer these payments, saying liquidity crunch and month-end payments to various vendors including for aircraft acquisition had led to it.
The move had evoked a sharp protest from various unions, who termed it as “demoralising” and made a veiled threat that they would be forced to “review cooperation” with the management in smooth running of the airline.
The union leaders, including those from the Indian Commercial Pilots’ Association, said while the management has in the past “followed ‘no work, no pay rule’ very religiously by cutting wages, the workmen are also free to follow ‘no pay, no work’ rule to protect their hard earned salary.”
“In view of this, we will henceforth be forced to review our cooperation with the management”, they had said.