Air India’s plan to send some employees on “leave without pay” (LWP) for upto five years violated labour laws and amounted to “match-fixing” for its new buyers, TMC MP Derek O'Brien said on Wednesday.
“Air India's compulsory leave without pay scheme is unprecedented in history of PSUs. Obvious ploy to protect top management & sacrifice employees. Move violates labour norms,is anti-worker & arbitrary is match-fixing for proposed #AirIndia buyers. Retrenchment in a new name,” he tweeted.
Mr. O'Brien was referring to an order issued by the airline on July 14 asking various regional managers and departmental heads to identify staff members who could be sent on LWP of six months to two years, extendable upto five years.
The scheme is being implemented as part of Air India's internal cost-cutting exercise to attract buyers for the 100% stake sale initiated by the government. Potential buyers have been given an extended deadline of August 31 to express their interest in the purchase.
“If top management is bloated,why sacrifice employees?No worker has sought this scheme. It denies workers rights, right to life & livelihood.Shocking that a PSU would use & throw employees in the face of a pandemic when 150+ #AirIndians tested +ve doing Vande Bharat Missions,” Mr. O'Brien said.
Minister’s response
At a press conference, Minister of State for Civil Aviation Hardeep Puri responded to the criticism, saying: “We have to face the reality. The government may not be in a position [to support Air India] by virtue of other demands being made of it [during a pandemic]. But it will be done keeping in view the interest of all those who have served the airline. Cuts will be across the board”.
The Minister said, “Today all airlines are doing pay cuts. If you don't cut costs, then equity infusion of ₹5,000 crore to ₹ 6,000 crore by the government every year in not sustainable. Do you want AI to survive? If AI has to pack up none of them will get a job. Today there is a surplus of trade people available”.
Vande Bharat Mission
Air India's decision to prune its employee size comes despite the large number of flights it has operated for repatriation of Indians from across the world under the Vande Bharat Mission, one that it mostly had a monopoly over.
Air India and its low-cost arm, Air India Express, operated more than 1,100 flights and evacuated 2.15 lakh Indians and foreign citizens since May. Private carriers were able to ferry only 12,000 passengers under the government-run scheme.
