ibnlive » Business

Jun 25, 2009 at 06:39pm IST

AI mgmt meets workers' union on deferred pay

New Delhi: The management of ailing national carrier, Air India met on Thursday with the employees' union to discuss the issue of deferred salaries for the month of June as well as the decision to cut employee cost by Rs 500 crore annually.

They union will also be joining the management in the meetings with the committee formed to consult with the PMO.

The Air India CMD, Arvind Jadhav also assured employees that the airline will not be privatised.

AILING AIRLINE: Sixty-nine aircraft over 15-years-old will be sold to raise money for Air India.

The CMD also appealed to the unions to call off their strike scheduled for July 1.

The meeting comes just a day after the Union Aviation Minister Praful Patel met Prime Minister Manmohan Singh to discuss a bailout plan. Jadhav has now clarified that the union will be involved in all decisions pertaining to employees.

He also says they'll also join the management in meetings with the committee formed to consult the PMO.

It has also been learnt that the airline is looking for a Rs 15,000 crore bailout package, but Finance Minister Pranab Mukherjee is said to have told them to be more realistic on the figure.

The management has promised the Prime Minister a two-year-turnaround period after rationalisation processes are set-in. They have also said that results will start showing in six months time.

Sixty-nine aircraft over 15-years-old will be sold to raise money.

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