30 September,2009 08:16 AM IST | | Surender Sharma
Airline management issued a release stating that it would pay the productivity-linked incentive to all sections of employees on October 7
After a four-day standoff between Air India management and the pilots, the company has sprung into damage control mode. Overnight, Air India issued a release stating that it would pay the productivity-linked incentive (PLI) to all sections of employees on October 7.
Air India spokesperson, Jitendra Bhargava said, "September salaries have already been credited to the employees' respective bank accounts and the full PLI will be paid on October 7."
However, the airline did not clarify whether the 50 per cent cut in the PLI that came into effect last Wednesday would be restored or not.
On the other hand, Captain V K Bhalla, who is spearheading the pilots' agitation, made it clear that the standoff will continue. "We are not resuming work tomorrow," Bhalla said.
Bone of contention
The bone of contention between the airline and pilots is the deduction in the PLI, which forms a major chunk of the salary. Generally, it is given to an employee on the basis of his or her efficiency, the company's performance and the efficient delivery of services by the company.
Huge losses
Though Air India has been incurring huge losses, the PLIs were being paid out to employees as decided by the management and the employees union a few years ago. The seriousness of the issue can be gauged from the fact that PLI and flying allowances of an executive pilot can go upto Rs 2 lakh per month apart from his basic salary and other perks.
The cut came into effect last week and was extended to only executive pilots and senior pilots in the management whose strength is around 7,000 and cannot form a union.
The cut for those receiving PLI of Rs 10,001 to Rs 25,000, Rs 25,001 to Rs 50,000 and Rs 50,001 to Rs 2 lakh decided by the Air India is 35%, 40% and 45%, respectively.
The airline's next move would be looking into the PLI paid to its unionised lot, including pilots, engineers, radio operators, officials said.
Rs 2 lakh
PLI and flying allowances of an executive pilot each month
