Issues related to human resource integration may have caused the delay of the merger of public sector firms Air India and India Airlines, which was originally scheduled for July 15, according to industry sources. The operations of the two airlines will now be merged on July 22.
According to sources in the Air Corporation Employees Union (ACEU), negotiations are still on between Indian Airlines’ administrative staff and the company’s top brass, to sort out manpower issues. Some of the staff have not got promotions even after putting in over ten years of service, sources added.
The source from ACEU added that in March 2007, when the merger was announced, the Indian Airlines management had given verbal assurances to the employees that they will get the posts they deserve in the merged entity. But as yet, nothing substantial has come out, despite many meetings held in the past few months.
An official from Indian Airlines said that wages of the technical staff have been revised, but the Herculean task of reshuffling positions remains. ?Although the date announced by the ministry is July 22, we believe it will take some more months for merging the operations of both the airlines,? he said.
However, S Venkat, executive director-finance, Air India says, ?The pay structure of the two organizations would be rationalized to bring it at par with each other. Whilst integrating at any particular level, there will be harmonization of policy and wages and review of productivity norms and linked incentives.? He adds that there is not much of difference in the pay scales at various levels across Air India and Indian.
However, a source from the civil aviation ministry said, ?The ministry received creditors? approval to complete the legal merger only a few days ago. The creditors? approval was to have reached a month ago.” It may be noted that the legal merger of the brand ?Air India? on the suggestion of Accenture consultants, appointed to help the government with merger-related issues, was to be completed under the Companies Act with a joint application filed by the board of directors of both companies and an order from the ministry of company affairs and subsequent approval of the creditors.