Air India has an employee strength of around 11,000, including flying and non-flying employees. (Photo: Reuters)
If all the 2,000 eligible employees take advantage of the second VRS offer, Air India will lose over Rs 200 crore.
Tata-owned Air India is looking to reduce its permanent workforce by another 2,000 through the Voluntary Retirement Scheme (VRS) and has set aside Rs 200 crore as part of the initiative. livemint Report. Air India last week offered voluntary retirement to its non-flying employees, the second such offer by the Tata group after it took control of the loss-making airline in January last year.
The report quoted an executive as saying, “If all 2,000 eligible employees take advantage of the second VRS offer, it will cost more than Rs 200 crore.”
According to a communication, the latest offer will be available to permanent general cadre officers who have attained the age of 40 years or more and have completed a minimum of five years of continuous service in the airline.
Also, clerical and unskilled category employees who have completed minimum five years of continuous service will be eligible.
Offer will be open till 30th April.
A total of 2,100 employees will be eligible to avail the benefits of the latest voluntary retirement offer, according to a PTI report quoting sources. Currently, the airline has a workforce of around 11,000 including flight and non-flying staff.
In June 2022, Air India introduced the first phase of the Voluntary Retirement Offer.
Air India Chief HR Suresh Dutt Tripathi has said in a communication that the employees have been requested to extend the additional benefit of voluntary retirement to other permanent employees as well. In response to this, Air India is announcing the second phase of voluntary retirement offer.
“Employees applying for voluntary retirement from March 17, 2023 to April 30, 2023 will also be provided ex-gratia as a one-time benefit.
“Eligible employees applying by March 31, 2023 will get Rs 1 lakh in addition to the ex-gratia amount,” the communication said.
The first phase of the voluntary retirement proposal covered both flying and non-flying staff. Around 4,200 employees were eligible at that time and around 1,500 of them opted for the offer, according to a PTI report quoting sources.
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