New Delhi: A day after announcing that it is planning to deduct the employee allowances by up to 50 per cent, Air India on Thursday said it held a review meeting with the Ministry of Civil Aviation and changed its plan.Also Read - Ahead of Handover to Tata Group, Air India Pilots Seek Clearance of Dues, Corrections to Deductions in Arrears
During the meeting with the Centre, Air India said it reviewed its decision and said no staff will be laid off. Also Read - Air India Divestment Likely To Be Concluded By January 27
“The recent decisions of Air India Board regarding rationalization of staff cost were reviewed in a meeting at @MoCA_goi this evening. The meeting reiterated that unlike other carriers which have laid off large number of their employees, no employee of Air India will be laid off,” it said in a series of tweets. Also Read - 5G Deployment: Air India to Commence Normal Operations to US From Friday. Details Here
In another tweet, Air India said that reduction in the basic pay, DA and HRA of any category of employees will not happen.
“There has been no reduction in the Basic pay, DA and HRA of any category of employees. The rationalization of allowances had to be implemented on account of the difficult financial condition of the airline that were exacerbated by COVID-19,” it added.
The national carrier further added that the flying crew members will be paid as per the actual number of hours flown.
“The flying crew will be paid as per the actual number of hours flown. As domestic and international operations expand to reach pre-COVID levels and the financial position of Air India improves, the rationalization of allowances will be reviewed,” it added further.
The development comes a day after Air India said it is planning to reduce the employee allowances by up to 50 per cent.
Releasing an official order, the national carrier had said that the move has been taken as per the directions from the Ministry of Civil Aviation and approval from the Board of Directors of Air lndia Ltd.
In the official order, Air India said that the rationalisation of allowances will be effective from April 1, 2020 and shall remain in force till further review by the board. It said that the deduction in salary is done an across the board for all employees, and not just the pilots and the other flying staff.
However, the salary and allowances (such as lDA, HRA and other allowances linked to basic pay) will remain unchanged.
Earlier, the ICPA in a letter of protest to Air India said that any unilateral change by Air India in the salaries of pilots would be illegal and has the potential to flare-up to a situation of unprecedented magnitude.