I-A to restructure employees wages

New Delhi, Mar 29 | Updated: Mar 30 2007, 07:08am hrs
State-owned Indian Airlines has finally taken an in-principle decision to resolve the 10-year old wage revision and career progress of all its employees, a senior company official said. However, since the salary revision was due since January, 1997 the arrears would size up to a huge amount. Hence, the civil aviation ministry would be required to take a final decision on whether the arrears would be paid at one go or in instalments over a period of time.

Integration of human resources had been considered as the major hurdle in the merger of the two national carriers. After the GoM directed the civil aviation ministry to speak to the representatives of employees, the minister had held several meetings with every employee's union.

The name of the new merged entity is likely to be National Aviation Company Ltd. and the brand name is likely to be 'Indian Air' or 'Air Indian'.

The final wage agreement was signed with the engineers on Wednesday, while the final agreement with the largest employees' union, Air Corporation Employees Union (ACU), is likely to be signed on Thursday.

Indian Airlines has 18,324 employees, of which around 14,000 are members of ACU. Besides ACU, the only other union that is yet to sign the final agreement on wage revision is the Indian Aircraft Technician's Association.

Rejig Plans

Co to resolve the 10-year old wage revision and career progress of all its employees
The merged entity is likely to be National Aviation Company Ltd
The final wage agreement was signed with the engineers on Wednesday

Wage revisions have been done as per the Directorate of Public Enterprises' guidelines but those for career progress; grades of the employees have been revised.

Though different departments are receiving different hikes, the general parameters are being maintained.

In July previous year, 45% hike in salary was given to the pilots. The engineers in the current series of negotiations have received a hike between Rs 20,000 and Rs 50,000. Negotiations had been on since then with the engineering technical and other departments, but as the wage negotiations have to be completed before the amalgamation of the Indian Airlines and Air India, the process will be completed in a week's time. Air India had completed 75% of wage revisions before the Group of Ministers had cleared the merger proposal on February 21 this year.