Employees salaries to be paid by Oct 8: Air India

The Air India management has decided that it would clear all due salaries by the 8th of October, even as the Union Minister Praful Patel called the PM to discuss the Air India crisis.

He had earlier called upon striking pilots and employees of Air India to cooperate with their management and join work, so that the airline can come back to full operation from Wednesday.

He warned that if pilots did not get back to work the management would be free to take any decision it thinks fit to safeguard the interests of the company.

Commenting on the main issue of the cut in the PLIs (Performance linked Incentives), the minister said that no decision has been taken for a cut in the PLIs of any section of the employees except those of the executive pilots, but even that has not yet been implemented.

On the complaint of the pilots, the decision to institute a cut in the PLIs had been put on hold and status quo was being maintained. That being so, Patel said, he failed to understand why it was necessary for the pilots to go on strike.

He said that Air India was facing grave problems and the Prime Minister had constituted a committee to look into a plan for a turn around of the national carrier, according to which nearly Rs 5000 cr would be infused into the airline. But, he added, the turnaround cannot be effected unless the employees cooperate.

“Air India in its current form cannot absorb the high cost structure,” he said.

He said that airlines across the world were facing troubles, including in India, and cost cutting measures were being implemented everywhere. However no decision would be taken without consulting the employees, Patel sought to assure.