AIR INDIA IN A BID TO CUT COSTS INTRODUCES TO LEAVE WITHOUT PAY SCHEME
Due to the ongoing pandemic which has hit demand of Indian airlines severely, airlines are staring at a revenue loss of Rs. 1.3 trillion between fiscal 2020 and 2022 said a report of rating agency Crisil. According to the report, Airlines are also unlikely to recoup from this loss and bounce back to pre-pandemic levels of double-digit growth at least in the medium term.
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Air India which has over 11, 000 permanent employees on its rolls, which include staff from its subsidiary companies, in a bid to cut costs during the current pandemic, National Carrier Air India Limited Board of Directors, has approved a leave without pay (LWP) scheme for its permanent employees for a period of six months to two years, which is extendable up to five years.
In a staff notice on 14 July, Air India said “This scheme (LWP) is being introduced for grant of leave without pay & allowances for permanent-employees, for a period of six months (extendable up to 5 years) or for a period of two years (extendable up to 5 years) at the discretion of the Management,”.
According to the Mint which reviewed a copy of notice, the notice said, “The Board of Directors in its 102nd meeting held on 7th July, 2020 has approved a Scheme whereby employees can opt to take Leave Without Pay ranging from six months or for two years and the same can be extendable up to five years (copy of staff notice attached)”.
The airline’s regional head and departmental leaders have been asked to forward a list of employees for compulsory LWP b 15th August. Scheme authorises the airline’s chairman and managing director to pass an order whereby an employee could be sent on leave for six months or for a period of two years extendable up to five years, depending upon factors like suitability, efficiency, competence, quality of performance, health of the employee, redundancy, etc. However, when contacted, an Air India spokesperson was not immediately available for comments.
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This post is written by Diwakar Ayyala. More on 99888-17966.