Pay cuts, compulsory leave can trigger ‘extreme acts’, say Air India pilots
On the pay cuts, it said many employee categories that have been working with relatively negligible Covid related risks and who continue to impose high input costs of the company have been insulated from large pay cuts completely for reasons that are perplexing and unknown.
Pay cuts and compulsory leave without pay scheme could have potentially disastrous psychological impact and lead to “desperate and extreme acts,” Air India’s executive pilots committee said on Thursday in a letter written to civil aviation minister Hardeep Puri.
At least 60 pilots deployed in government’s Vande Bharat Mission flights have tested positive, the letter said, adding that at least one pilot has lost a family member to Covid-19 and those of many others have also been infected and appealed to the minister to rescind the decision to revise wages.
“Our Association is also extremely concerned about the potentially disastrous psychological impact that the massive forced pay cuts and Compulsory Leave Without Pay scheme, may create on some employees. We shudder to think of the kind of desperate and extreme acts that could be triggered off because of the prevailing situation,” the letter said. Hindustan Times has reviewed a copy.
The letter also cautioned against a litigation from employees.
“As executives, we shall always support all acts and decisions that are financially prudent and serve the company’s best interests. Therefore, we believe that a rising stack of litigations and financial liabilities (contingent and current), arising out of pending financial dues owed to employees could potentially destroy our organization’s future health, and more so, would be unfairly transferred to any prospective buyer of Air India, in case the impending strategic disinvestment,” the letter added.
The letter comes a week after the Air India board approved a leave without pay (LWP) scheme for its permanent employees for a period of six months to two years, which is extendable to up to five years. The national carrier had defended its decision last week stating that it was in a very challenging financial situation and is taking recourse to several initiatives with a view to ensuring the continuance of its operations.
The airline has also decided to cut the pay of its cockpit and cabin crew with effect from April 1, 2020.
“Recent decisions of Air India Board regarding rationalization of staff cost were reviewed in a meeting at the civil aviation ministry this evening. The meeting reiterated that unlike other carriers which have laid off large number of their employees, no employee of Air India will be laid off. There has been no reduction in the Basic pay, DA and HRA of any category of employees. The rationalization of allowances had to be implemented on account of the difficult financial condition of the airline that were exacerbated by Covid-19,” the airline said in a statement issued on Thursday.
“Flying crew will be paid as per the actual number of hours flown. As domestic and international operations expand to reach pre-Covid levels and the financial position of Air India improves, the rationalization of allowances will be reviewed,” it added.
The recent decision of the management adopting the compulsory leave without pay (LWP) model as well as the “massive wage cut” of the employees/Pilots emoluments has led to “serious discontentment and heartburn amongst the entire workforce”, the pilots said in their letter.
“The world has acknowledged and lauded the invaluable contribution and sterling efforts of our Pilots as Corona Warriors during the Covid-19 outbreak. It was the will to respond to national call of duty, that got the Executive & other Pilots to think out of the box, to facilitate operations in the most difficult and challenging times, to keep the aircraft flying, and to keep our airline and its employees relevant, in an era plagued with bankruptcy and layoffs,” the letter said.
The Air India’s pilot association the Indian Commercial Pilot Association on Monday also wrote to the national carrier’s management stating that changes in the wage settlement would be illegal and such a situation has the “potential to flare to an unprecedented magnitude.”
At a press conference last Thursday, Air India chairman and managing director Rajiv Bansal had said the national carrier is working on four fronts to reduce costs by reducing the debt, cutting on lease rentals, trimming staffing costs and reducing operating costs.
The cost-cutting drive dovetails with a government plan to sell its entire stake in Air India amid increasing debt and mounting losses. The Centre, in January, started the process by releasing an information document for investors and offering access to financial and other data of Air India and its subsidiaries.
The government’s entire stake in Air India, its 100% stake in low-cost subsidiary Air India Express Ltd. and 50% stake in ground handling unit Air India SATS Airport Services Private Limited. are on offer.
An attempt to auction a majority stake almost two years ago failed to draw any bids. The airline’s accumulated debt is estimated to be more than Rs 69,000 crore. It posted a loss of Rs 8,556 crore in financial year 2018-19, as against a net loss of Rs 5,348 crore in the previous financial year.
