However, experts point out, the withdrawal of demands by Air India’s pilot unions is a strategic move and the matter has not yet been settled for good. Pilots remain categorised as "workmen" under the National Industrial Law Tribunal in 1956. The recent order addition of 470 new aircraft to the Air India fleet means that the new pilots will be signed on the new contracts. But all of them remain workmen, for now, even if their contract uses a different terminology.

The recent standoff

A senior official in Air India expressed deep concern over the situation, which he attributed to the Air India management's blatant disregard for the welfare of unions and pilots. He pointed to the management's flawed approach of introducing new terms to pilots and subsequently organising a town hall meeting amidst escalating tensions. According to the senior official, the stakes are high for pilots being asked to sign these restructured terms, raising valid concerns about the implications and potential risks involved.

In April, Air India announced a revamped compensation structure for pilots and cabin crew. It faced strong rejection from both unions, which advised their members not to accept the offer of a minimum monthly salary of ₹50,000 and the potential for some pilots to earn up to ₹8.5 lakh per month based on category and flying hours. They argued that the terms and conditions were unfairly imposed upon them, raising concerns over a lack of transparency and fairness.

Around 3,000 Air India, Vistara, and Air Asia pilots may be impacted by the proposed changes that would see fixed pay for 40 hours, down from the pre-pandemic 70 hours. The unions have expressed concern that pilots will experience pay cuts when on leave or unavailable due to training and license renewal requirements. Additionally, the union opposes a clause that would remove the ‘workmen’ status of pilots. This allows them to form unions and strike against unfavourable policies. The ICPA and IPG, representing 1,700 Air India pilots, have also spoken out against the requirement for pilots to be on standby duty, arguing that it will disrupt their work-life balance.

Air India's decision to classify all senior commanders as management pilots and restrict their involvement in trade union activities has drawn intense criticism as being flagrantly unlawful. The unions have accused the management of deliberately attempting to undermine senior pilots by promoting them to the management cadre. It is worth noting that historically the airline maintained a small group of pilots known as management pilots, who performed both managerial and flying duties. Despite their inclusion in the management cadre, these pilots were still considered workmen under the legal framework established by the Beni Prasad Award. This binding award, which has received support from high courts and the Supreme Court in numerous challenges, determines that if the majority of work performed by management pilots is related to flying, they should still be classified as skilled workmen. As a result, management pilots retained their union membership and even participated in union elections, emphasising their alignment with the broader workforce.

The unions' opposition to the revamped compensation structure and their criticism of Air India management highlight the ongoing tensions surrounding the implementation of new terms and conditions. The dispute underscores the need for fair and inclusive dialogue between the airline and its employee representatives to ensure a mutually agreeable resolution.

Mark Martin, founder and CEO of Martin Consulting, an aviation consultancy, believes negotiation and mediation could help both parties find common ground on the proposed compensation structure changes. “Improving communication between the management and pilots and addressing underlying issues, such as staffing shortages and high workload, could reduce the likelihood of future disputes,” Martin said.

“There may be jobs available outside. Carriers in the Gulf are hiring, and airlines like IndiGo will hire as per need. But Air India has placed 500 aircraft orders, indicating it offers a certain degree of stability. And the airline is also hiring for this. The new joiners will come on these new terms,” he added.

A pilot, who signed on the dotted line, believes that industry-wide changes are the need of the hour. The pilots who petitioned the Air India Chairman N. Chandrasekaran and Tata Sons Chairman Emeritus Ratan Tata were also in favour of working with the company to find mutually beneficial solutions.

However, many Air India pilots have voiced allegations of being coerced into signing the new contracts, citing the immense pressure within the industry. With the official withdrawal of the protest, the ramifications of these changes on pilots' unions and their role in the future of Indian civil aviation remain uncertain. If not resolved amicably, the future of Air India itself could be at stake, particularly considering its ambitious growth plans, as evidenced by the recent confirmation of a 470 aircraft order at the Paris Air Show.

The outcome of this ongoing situation, with the pilot’s union seeming to have only made a strategic withdrawal from any conflict, will have far-reaching implications for the aviation industry and Air India's trajectory.

A long dispute

This isn’t Air India’s first run-in with pilots’ unions. The history of Air India's pilots’ unions is checkered with periods of intense conflict, strikes, and reconciliation. It all began with an allowance of ₹100 that the pilots were paid in pre-nationalised days. After the airline was nationalised into Indian Airline Corporation and Air India in 1953, this payment was denied to the pilots who went on agitation.

The government set up a National Industrial Tribunal to resolve the dispute under the chairmanship of Mr Bin Beniwal Prasad in Lucknow. "The tribunal was to decide whether the pilots were officers (supervisors) or workmen for the allowance to be admissible or not,” recalled aviation veteran Shakti Lumba. His memoir, The Old Bold Pilot, references the history of Indian aviation, including the Indian Airlines pilot union, the ICPA, and a member of the Central Executive.

The pilots claimed that they were officers, with duties and responsibilities akin to that of a ship’s Captain. However, the Indian Airlines management held that they were workmen, as they did not have the right to hire or fire staff, a view shared by the Ministry of Civil Aviation.

In 1959, the tribunal, in its award, The Beni Prasad Award, upheld the airline and ministry’s pleading and deemed pilots were ‘skilled workmen’ covered under section 2 SS of the Industrial Disputes Act 1947. The ₹100 officers’ allowance was denied to them. It is pertinent to point out that pilots are considered workmen under labour laws of the United States, UK, Canada, Australia and the European Union, to name a few other countries.

According to Captain Lumba, this denial of a workman's rights and protections, as guaranteed by the Industrial Disputes Act and the Beni Prasad Award, can be legally challenged. Captain Lumba further highlighted the historical precedent of management pilots participating in the pilot strike in 1992, emphasising that the Chief Labour Commissioner supported and upheld their actions. In his opinion, any country or company denying legitimate rights lays the groundwork for a potential revolution. The issue raises concerns over the fundamental rights of pilots and the implications of disregarding established labour laws and precedents.

Rise of the union

Workmen, including pilots, can register a trade union, granting them collective bargaining power. This enables them to negotiate service conditions, resolve disputes, and seek protection from unfair labour practices. If necessary, they can also go on strike, provided a 14-day notice is given to the employer as per statutory requirements. To ensure compliance with labour laws, each employer must establish a dedicated Industrial Relations cell to provide guidance. The Industrial Disputes Act of 1947 outlines the process of conciliation for resolving disputes, during which the trade union is prohibited from going on strike.

A strike is deemed illegal until the Chief Labour Commissioner declares dispute resolution failure. A seven-day notice is required for a legal strike if the government fails to establish the National Industrial Tribunal. Strikes during the conciliation process are considered illegal, risking the loss of union registration, recognition, pay, and possible termination for workmen.

The ICPA, formed in 1961 has been a proactive union advocating flight safety and pilot interests. In 1964, it facilitated the introduction by pioneering Flight and Duty Time Limitation (FDTL) in a tripartite agreement with Indian Airlines and the civil aviation ministry to address pilot fatigue and establish structured duty times, secured career progression agreements based on seniority for co-pilots to Captain upgrades, and implemented the mandatory pre-flight breathalyser tests after an incident in 1970, where an air crash was suspected to be alcohol-related. The union agreed to salary deduction for pilot coverage under the LIC-managed annuity scheme and secured loss of medical insurance for pilots declared medically unfit.

In December 1992, ICPA's legal strike for flight safety highlighted inadequate route navigation and landing aids on the A320. Among the fallouts of the strike was the resignation of the then civil aviation minister Madhavrao Scindia following the crash of an aircraft temporarily leased from Uzbekistan in 1993. The aircraft had been leased along with its foreign crew to tide over the airline’s pilot crisis. The airline's chairman and managing director (CMD) Air Marshal SS Ramdas also quit amid the rift at Indian Airlines. The strike, however, saw the much-needed allocation of funds to upgrade India's airports and air routes. This enhanced safety measures and brought them on par with more advanced aviation nations.

Indian Airlines and Air India pilots demonstrated their unwavering support to the country during Desert Storm 1, swiftly evacuating Indian nationals from Amman, Jordan. They further showcased their commitment by conducting relief flights during the SARS and Covid pandemics.

The merger of Indian Airlines and Air India in 2007 pushed two profitable airlines into an abyss of mounting losses. The government had to inject billions of rupees to keep it afloat while the airline struggled. After enduring a series of setbacks and failures, the government ultimately decided to divest the airline, transferring ownership to Tata Sons.

Air India's transformation under the Tata Group's ownership has been marked by noteworthy developments. From addressing long-standing issues like unpaid pilots and mounting debt, the airline has undergone a notable turnaround. Recently, Air India made headlines by hiring 900 new aviators, and placing an order for over 400 new aircraft from Boeing and Airbus. The new owners are actively working towards a merger between Air India and Vistara, a move that could well reshape the Indian aviation landscape.