Air India unions may demand VRS in meeting with Hardeep Singh Puri today

The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

Company News : Air India trade unions are likely to demand a VRS package at their second meeting with Minister of State for Civil Aviation Hardeep Singh Puri in New Delhi on Monday.

The minister is set to meet over a dozen Air India unions, including unrecognised ones, on Monday for the second time in a month over the airline's privatisation plans.

The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

At the first meeting on January 2, the minister had made it clear that privatisation was the only option before the government to keep the airline afloat and sought employees cooperation in carrying out the disinvestment process.

Puri had also told the unions that he will call them again after the meeting of the ministerial panel on Air India disinvestment.

"Initially, we were told that government would protect our jobs if airline gets privatised and therefore we did not think about voluntary retirement.

"But off late, our members have been approaching us and want us to discuss a voluntary retirement scheme package with the government as it is expected that our job will be protected only for one year post privatisation. We are going to raise this issue at the meeting with the minister on Monday," an airline source told PTI.

The source said that if the government agrees "in-principle" on their demand, the unions will work out the contours of the VRS package, including the service cut-off period and the quantum of monetary compensation.

Media reports suggest that the new investor may be allowed to retain Air India's some 11,000 employees only for one year after the carrier goes into private hands.

The Group of Ministers (GoM) led by Union Home Minister Amit Shah during its meeting on January 7 approved the plan to invite EoI and the sale-purchase agreement for the disinvestment of state-run carrier, an official had earlier said.

Air India's net loss in 2018-19 was around Rs 8,556 crore. Moreover, its per day losses are estimated to be in the range of Rs 20-26 crore, alongwith a debt of around Rs 80,000 crore.

Air India pilot bodies seek meeting with aviation minister on privatization

Earlier this month, as many as 13 Air India unions including its pilots unions, Indian Pilots Guild (IPG) and Indian Commercial Pilots Association (ICPA), had discussions with the airline top brass.

Flag carrier Air India's pilot bodies--IPG and ICPA -- on Tuesday sought appointment with civil aviation minister Hardeep Singh Puri for a clarity on the proposed disinvestment amid the government preparing to exit from the airline business.

The government for long has been trying to sell debt- ridden airline but could not attract bidders. It has now again decided to call bids for sale next month.

The pilot bodies, in a communication to Puri, said that the airline management appraised it of the status of disinvestment during a recent meeting but it did not provide any clarity on pending issues or provide any roadmap with regards to the future of employees as a result of this disinvestment process.

Earlier this month, as many as 13 Air India unions including its pilots unions, Indian Pilots Guild (IPG) and Indian Commercial Pilots Association (ICPA), had discussions with the airline top management on the issue of privatisation.

"We, the Air India employees have a big stake in the success and prosperity of our airline. We request you to kindly grant us an urgent appointment for a meeting at your convenience so that we can have clarity on the mechanics of the disinvestment process and communicate employees issues/concerns as well as the ground reality to you directly," the pilot bodies said in a joint letter to the aviation minister.

"We would like to bring to your kind attention that in 2007 when the merger of AI and IA was being processed, we had raised various issues regarding employee status and service conditions in the merged entity," it said.

At the meeting,it was "categorically" emphasised that the interest of the employees of both erstwhile Indian Airlines and Air India was of paramount importance and as such while drafting the Scheme due care has been taken to protect the same, the letter said.

Despite the merger of the two carriers about 12 years failing to achieve the projected synergy, the employees have been working tirelessly to make the merger a success and to improve the condition of the airline which has deteriorated due to "mismanagement" and "legacy issues", the letter said.

"We were made tall promises at the time of merger which have all fallen flat and have grave apprehensions regarding the future of our airline as well as our own livelihood post disinvestment," it added.

Business Standard