While airlines around the world are threatening or implementing layoffs due to unprecedented drops in demand, Air India is promising no jobs will be lost. Ah, the joys of being a state-owned, state-backed airline. But the practical effects of Air India’s actions are precisely the layoffs Air India eschews.
Air India: No Layoffs
Air India staff are paid a base salary plus an additional allowance for items like inflation (called a dearness allowance) and housing. This will not be reduced.
Recent decisions of AirIndia Board regarding rationalization of staff cost were reviewed in a meeting at @MoCA_goi this evening.The meeting reiterated that unlike other carriers which have laid off large number of their employees,no employee of AirIndia will be laid off. (1/3)
— Air India (@airindiain) July 23, 2020
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.(2/3)
— Air India (@airindiain) July 23, 2020
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.(3/3)
— Air India (@airindiain) July 23, 2020
In fact, no crewmember making Rs 25,000 (~$333) per month or less will see a drop in salary. But Air India pilots receive the majority of their pay in the form of a flight allowance, which is based upon the number of hours flown.
During the pandemic, a senior widebody pilot has gone from Rs 5.5 lakh (~$7350/month) to Rs 2.1 lakh (~$2800). First officers now make as little as $400/month. Flight attendants have also seen reductions in take-home pay, even as their so-called base pay remains unchanged.
Air India is also threatening up to five years of mandatory unpaid leave (officially LWP or leave without pay)…
“The LWP scheme has been introduced for grant of leave without pay and allowances for permanent employees for a period of six months/two years, which is extendable up to 5 years.”
But, no layoffs…
CONCLUSION
Air India claims it will not lay off any staff member. But isn’t drastically reducing pay the same thing? Isn’t up to FIVE YEARS of unpaid time off the same thing? Like many things concerning Air India, the situation doesn’t quite add up.
image: Thomas Naas / Flickr CC 2.0
Playing games with your people’s livelihoods is disingenuous and counterproductive. If you have to let people go, do it rather than dragging things out and increasing animosity.
Modi also promised “acche din”(golden day’s) with in 5 year and now people are enjoying “acche din”(golden days) like any think…!!!!