The Hindu Business Line : Redressal mechanism for AI-Indian merger

Meet outcome
Till redressal body is formed, managements to look after employee grievances
Selection of personnel to be on fair, objective criteria

New Delhi , Jan. 17

In an effort to facilitate the merger of Air India and Indian, the Government is to set up an independent redressal mechanism, the Minister for Civil Aviation, Mr Praful Patel, has said.

"The mechanism would be in place after the merger process gets under way. The mechanism would include representatives from the Ministry of Civil Aviation, Department of Personnel and Department of Enterprise. Till such time as the merger gets under way, the management of the two airlines will look into the grievances of the employees. The date of the merger will be decided by the Group of Ministers," Mr Patel told newspersons after a daylong meeting with employees of both airlines.

The Minister added that an integration committee would also be formed to which the representatives of the various unions would be called. At the meeting it was explained to the employees that the selection and appointment of personnel for various responsibilities in the merged entity would be done in a credible and transparent process based on fair and objective criteria. Besides, the employees were assured that post-merger they would be placed in such a position that their service conditions would improve further and they continue to gain.

At the end of the third year, the merged entity would have the benefit of increased cost savings and profitability of Rs 820 crore. This includes Rs 410 crore saving from revenue synergy and a saving of the same amount from cost and capital synergy driven primarily by consolidation and better negotiating power against integration of cost of Rs 200 crore.

Commenting on the daylong deliberations, Mr Patel said that the meeting was a mere dialogue with the employees during which the need for the merger to be completed was explained. "Broadly there is consensus among all sections for the merger but there are also some concerns. These will be addressed," the Minister said.

The General Secretary, Air Corporations Employees' Union, Mr Arun Kumar, said the Government would need to address three issues including wage revision, career progression and pension before the merger process started.

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