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Mumbai/New Delhi, June 15 Employee unions of the National Aviation Company of India (Nacil), which runs Air India, have written to Mr Arvind Jadhav, Chairman and Managing Director, and senior management officials, condemning the company’s move to delay June salaries and payment-linked incentives.

This is for the first time since its inception that the airline has taken a decision of this magnitude that could affect 31,000 employees.

The Aviation Industry Employees’ Guild (AIEG) said the decision was a violation of the Wages Act and the Industrial Disputes Act. Terming it “unilateral,” the Joint Action Committee of Nacil Trade Unions sought clarifications from the management on the move. “It has never happened in our entire history that the management has ever deferred employees’ salaries, more so when there exists a well-planned cash flow arrangement in the company. Where the breakdown has taken place is not known to us so far…” they wrote in their communiqué.

The Air Corporations Employees’ Union, in a separate letter to the management, said employees were caught unawares by this situation. According to Mr Vivek Rao, Regional Secretary, Mr Jadhav met senior officials of the union early last month and had “at no point of time during the course of discussions mentioned such an alarming situation”.

Blaming Government policies and the management for its “poor performance” in causing the “crash of the product (Air India),” the employees said they should not be held responsible for the current state of affairs and requested Mr Jadhav to make their payments on time.

Asked if this decision could disrupt Air India’s operations, Mr Sanjay Seth, Secretary, AIEG, said, “We are awaiting a response from the CMD on the letters sent before deciding on the future course of action.”

Airline officials told reporters the company was working on alternatives to meet the current crisis, with bank loans being an option.

Nacil is yet to present a proposal to the Centre on the quantum of funding for its working capital requirements. Before the elections, the Minister of Civil Aviation, Mr Praful Patel, had said the company would be given around Rs 4,000 crore as equity and a soft loan, though recent reports peg this amount at Rs 14,000 crore. “Air India could get some financial help in the Budget,” Civil Aviation Ministry officials told Business Line.

More Stories on : Trade & Labour Unions | Airlines

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