Air India reforms its wage system, management

After it got the go-ahead for massive restructuring, national carrier Air India is now all set to get a new wage system.

The Civil Aviation Ministry had decided to scrap the productivity-linked incentive (PLI) remuneration structure, which forms the major part of the airlines’ salaries, the Business Standard reported.

The decision on PLIs will affect about 27,000 employees. PLIs constitute over 60 percent of Air India’s Rs 3,000 crore annual wage bill and form 80-200 percent of employees’ salaries, said the Business Standard report.

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However, the move is not expected to make any major reduction on wages as salary revision is due, the paper added.

The new wage structure will be based on Public Enterprises Selection Board (PESB) guidelines.

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The Civil Aviation Ministry has also decided to accept and implement the recommendations of Justice Dharmadhikari Committee, which was formed last year to suggest ways to integrate employees of Air India and Indian Airlines.

The ministry has also decided to rejig the airline’s top management. The airline will now have a joint managing director, who would be an Indian Administrative Services (IAS) officer, to oversee integration of the erstwhile Indian Airlines with Air India.

Read the full Business Standard article here.