Air India unions reject govt's subsidiary formula

Expressing their reservations on the move, the forum claimed that the AI management did not consult them before finalising the decision.

hidden April 13, 2012 16:09:54 IST
Air India unions reject govt's subsidiary formula

Mumbai: A section of the Air India (AI) unions, which is opposed to the hiving off the MRO (maintenance, repair and overhaul) and engineering entities into two subsidiaries of the cash-starved flag carrier, today said they will meet next week to chart out their future strategy.

"We had called a meeting today. Since we are yet to receive documents regarding the government decision, we have postponed our meeting to the next week to chart out our future course of action in the wake of this development," a union source said in Mumbai.

Air India unions reject govts subsidiary formula

Trouble ain't over for Air India. Reuters

"But our unanimous decision is to oppose the move," he said, adding in no circumstance it is acceptable to the unions.

A section of the unions, comprising engineers, pilots, officers, ground-handling and technical staff, has decided to oppose the move under a joint forum, the source said.

The government had on Thursday approved the airline's proposal to spin off its MRO and engineering services into two wholly-owned subsidiaries. The move will see placing about 19,000 of the around 33,000 employees of the airline with these two new units.

Expressing their reservations on the move, the forum claimed that the AI management did not consult them before finalising the decision.

"This is not a right move as simply hiving off a unit and transferring manpower will not solve the larger problem," the union leader said.

Another office-bearer said the hiving off strategy is not a good move at all.

PTI

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