Government may restrict benefits for Air India employees – Times of India

New Delhi: Government Employee is likely to limit benefits only for as long as he or she owns a cash-guzzler national carrier Air India, as part of its ambitious strategic sales programme, to lay out a roadmap for the privatization of other public sector companies.
The move would mean that the new owner of the airline – which is the top priority for disinvestment this year – will have new terms for employees and could change the compensation package in such a way that it benefits those sections Where it wants to make them more attractive, sources familiar with the privatization program told TOI.
Air India employees are entitled to a number of benefits that go beyond the general health and provident fund scheme and also include free tickets for several segments. Although the number of free tickets that could be issued in a year is fixed, it was given beyond the immediate family which usually includes employees, spouses and dependent children. Last year, Air India Employees Union The petition was filed in the Ministry of Civil Aviation that the medical scheme, provident fund and leave encashment for service and retired employees should be continued in its present form even after privatization, arguing that it is vital for their well being. Given that some of the benefits go beyond normal industry practice, some bidders are concerned about a generous package to the entire workforce, prompting the government to deliberate internally. A government official said that it is appropriate that Center Honor his share of the commitment, which can only be limited to the time he is the boss.
However, workers and employees believe that they joined the company with benefits in mind and operate on the assumption that the terms of the contract will remain unchanged. In fact, employee benefits is one of the factors that has delayed the entire process beyond the target date for privatization and some other aspects are still being decided. Covid-19 has also delayed the process. However, a senior official said the company, which will receive a fresh Rs 1,900 crore from the government once the supplementary demand for grants is cleared, is to be privatized during the current fiscal as the Center is also keen to investigate . bleeding. The Center aims to invite financial bids in September and is making all efforts to ensure that the sale is completed in the current financial year. “It may take a little longer, but some of the issues settled here will be used in the case of other companies which will be privatized in the coming months,” the senior official said.

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