Over 20,000 employees of national carrier Air India (AI) went on a two-hour strike at airports across the country from 1 pm onwards to protest the delay in salary payments, despite a warning from the management that this would entail a pay cut. AI maintains that employees will get salary in a day or two.
A press statement from AI owner Nacil (National Aviation Company of India Ltd) said that as per the reports reaching Nacil from all stations on AI?s network, all flights were as per schedule during the two-hour strike.
?As stated by the AI?s management earlier, requisite steps had been taken to ensure total normalcy in operations so that passengers do not face any inconvenience,? said the release. AI management had in a staff notice issued on Thursday made it clear to the airline?s unions, which called for a strike, that participation by employees in the illegal strike on July 3 would be viewed seriously and appropriate action would be taken. This would include deduction of wages and withdrawal of productivity linked incentive (PLI) payment until further orders.
Meanwhile, Air India CMD Arvind Jadhav has, in another communication with employees, stated, ?It seems that the gravity of financial situation has not sunk in well in all of us. There is an urgent need to have a better understanding of the ground realities as unless we know the magnitude of the problem we will not be able to take corresponding action to solve it. It is of paramount importance that while we take steps to reduce our operating costs and sacrifice some of the privileges we have enjoyed over a period of time, we also need to exercise a choice between austerity and oblivion?.
Besides wages and salaries, which need to be disbursed every month, fuel costs and bank liabilities, like payment of interest and re-payment of principal amounts, have also to be paid on time failing which our operations could stop, he added. ?Considering the critical financial state of the airline, we should all be prepared to face the impact of harsh decisions that will be required to be taken in the coming weeks to meet the current difficult financial situation,? he said.
Seeking cooperation and support from employees so that all Air India staff could work towards ensuring the survival of the airline, Jadhav said it was imperative that employees leave no room for ensuring that passengers get no chance to complain and enjoy a pleasant and comfortable journey onboard.
Air India is in a financial mess having incurred a loss of Rs 4,000 crore in FY08, forcing civil aviation minister Praful Patel to approach Prime Minister Manmohan Singh for a Rs 10,000-crore bailout package.
The Prime Minister has, in turn, suggested that National Aviation Co to undertake cost-cutting measures and improve its financial condition.