Air India to cut employee costs by Rs 500 cr

Monday, June 22, 2009 |

Air India is working on plans to reduce its expenditure on employees by Rs 500 crore per annum, with a newly formed Committee re-examining wage and other agreements in consultation with the Unions.



The cash-strapped airline's employee cost currently is over Rs 3,000 crore annually, a company spokesperson said, adding that the airline was now targeting a reduction in employee cost to the tune of Rs 500 crore per annum.

At present, the merged carrier has around 31,000 employees.

One of the six panels set up recently is the Cost Rationalisation Committee, comprising officials of HR and Finance Departments.

The Committee has been directed to discuss cost rationalisation and reduction of wasteful expenditure with employees' unions and submit its report by July 15.

The spokesperson said that the Committee would examine the wage agreements, including those relating to flying allowances and productivity-linked incentives.

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3 comments:

Unknown said...

this is wrong to be deduction the salaries of Air India people i think Indian government should do something .

Unknown said...

relieve the Indiand of Air India agony. Money savd by cloisng down can be beter spent on priary education and health car benefiting millions f people as opposed t pampering inefficient & arrogant staff of 31000 at, beyond redemption, Air India> It will be great day for ou country when we get this of this national shame.

Unknown said...

Let us for once get rid of national shame alled Air India. Mst unprofessional, uncouth and inefficien Air Lin in he world. They are a national disgrace. I urge all employees to go on a inefinit srike and in any cas for not less that 100 years.