ibnlive » Business

Jul 04, 2009 at 12:36am IST

AI top brass warns employees against strike

Mumbai: Air India employees across the country went on a two-hour strike protesting delay in payment of salaries even after the management warned them of strict action.

The financial crisis at Air India made the employees come out on streets to agitate.

The employees claimed it was bad management at the company that landed the airlines in trouble but they were now being made to pay for it.

"It is unfortunate that management has backed out. There has been no communication," said JB Kadian, Joint Secretary, Air Corporation Employees Union.

Top Management of Air India which met in Mumbai to discuss various cost cutting measures went into a damage control mode and issued a stern warning to the employees.

In a letter issued to the employees CMD Arvind Jadhav said, "Considering the critical financial state of the airline, we should all be prepared to face the impact of harsh decisions that will be required to be taken to meet the current situation. There can be no escape from harsh realities. We also need to make a choice between austerity and oblivion... the choice is between austerity and oblivion."

Civil Aviation Minister Praful Patel said Air India has been given time to prepare a turnaround plan

"We have asked the Air India to submit a plan for restructuring in the next 30 days. They are appointing SBI Caps to do financial restructuring and let us know what is needed to be done and implemented in the coming weeks and years," said Patel.

But with limited options and aviation sector across the board facing turbulent weather the management has an uphill task

Air India's top management may have discussed six or seven cost cutting measures at a meeting but nobody seems to have a sure shot solution to the current financial crisis.

If there is one thing the management wants to avoid it is another agitation by employees because that is something which will really send this company into a tailspin.