Click to play videoNew Delhi: Indian Airlines hoped its employees would look at the company’s balance sheet and agree to the decision to delay salaries by 15 days. They are not.
The national carrier on Sunday announced it would delay June salaries of 31,000 employees by 15 days to compensate for the Rs-4,000 crore losses it suffered last fiscal.
Unions are not buying that logic and say Air India must implement the two-fold salary hike it had last month. The unions will go on strike if their demands are not met. "If the management persists on this issue we will have no alternative but resort to industrial unrest," said an union leader.
The entire airline industry is in a slump. Jet Airways, the country’s largest private airline, sacked around 1000 employees to cut costs and its rival Kingfisher is negotiating with banks for a Rs-2,000 crore bailout. British Airways has announced its inability to pay employees for June. Air India officials ask for a little understanding from the unions.
"There are companies shedding people; some are saying they won't pay their employees at all for a month. We are only asking for 15 days. I guess people should realize the bad times we are living in as well as the financial condition of the company," said Jitendra Bhargava, executive director in Air India’s Corporate Communication.
"Airlines in India are making substantial losses," said Saroj Dutta, Executive Director of Jet Airways.
Air India may temporarily tide over its problems by delaying salaries but what it really requires is a bailout package from the government--something to the tune of Rs 14,000 crore in three installments.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
 |
 |
 |
|
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.