Rationalization of Pay Structure of Air India Employees Approved

                                              The Government of India has approved the rationalization of pay structure of Air India employees. As a good result of that now the pay package of Air India's pilots, engineers and cabin crew will be fixed as per the standard industry norms, which is highly necessary considering the ongoing scenario. It is quite likely that this rationalization will save over Rs 320 crore per year for the suffering carrier Air India.

                                              The Cabinet Committee on Economic Affair (CCEA) has cleared the proposal in an important meeting, which was held very recently. As per the proposal the pay bands of Air India's pilots, cabin crew and engineers will now be restructured.

                                              Some official sources said that in this restructuring process basic pay bands of these employees might cut down by about 10 to 20%. But there is good news for the employees too, as their allowances would now rise up to compensate it.

                                              It has to be mentioned here that Department of Public Enterprises (DPE) has some guidelines in order to decide the salary and allowances of any government employees. Few days back Justice D M Dharmadhikari Committee has been set up to study the proposal and fix salary and allowances of the Air India employees. The committee had studied the matter for some days. Eventually it had gone into all important HR issues including pay and seniority, and after a detailed study, they recommended that the pay structure of these licensed staffers should be rationalized as per the standard industry norms.

                                              As a matter of fact Air India’s total combined wage bill stands at about Rs 3,200 crore per annum, and almost 55 percent of it, which is Rs 1,750 crore has been spending on wage and allowances for the licensed employees of the career such as cabin crew, pilots, and engineers. So the wage bill is gigantic, and in order to make a comeback to a profitable state, it has to be reduced. The government, to be precise the CCEA has understood the matter, and as a result of that it approved the proposal of rationalization.

                                             The government had already followed some recommendations of the panel of Justice Dharmadhikari. It had exterminated Productivity Linked Incentives (PLI) to Air India employees from July 2012 to cut down the wages. This PLI was the major part of the pay bands of the license category employees.

                                             The Dharmadhikari Committee had innumerous number of discussions on the several issues, which are mainly relating to pay-scales and career growth. The main motto of the committee was to equality and integration among the employees of the two state-run careers, which are Air India and Indian Airlines.

                                             You may also read Five Indian Airports get status of International Airport . As a matter of fact Indian Aviation market is on a move after increasing the cap of Foreign Direct Investment into it. The best global careers are showing interest to invest on this market of India, so hopefully this rationalization won’t last long.

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