Mumbai, Sept 10: The loss-making national carrier, Air India, has formulated two voluntary- retirement schemes for its 18,000 employees in a bid to trim its wage bill.According to public relations and national marketing division director Jitendra Bhargava, the board, at its recent meeting, discussed two schemes --leave without pay, allowances, productivity-linked incentive and shorter working week scheme.
It is open to all category of employees except pilots and flight engineers, he said.
The first scheme will be valid for two years and can be extended by another three years at the discretion of the management, Bhargava said. For the second scheme, employees will be required to exercise their options for a year, which can be extended for another year at the discretion of the management.
He said the first scheme would come into effect from October 1 and remain in force till March, 1999, while the second would be effective November 1, 1998.
Employees who avail themselves of the first scheme will begiven the benefit of continuity of service for the purpose of passages, medical benefits, gratuity and pension. Bhargava said the beneficiaries under the scheme would not be permitted to take up employment in government or other public-sector undertakings.
However, for employment with other airlines and allied services or any organisation with which the company has dealings, they would be required to seek prior permission from the management, he said.
Employees under bond, who wish to avail themselves of the scheme, will have to complete the period of the bond or settle their applications.
Under the second scheme, employees will be required to work on any three days of the week from Monday to Friday and will be paid 60 per cent of their emoluments, allowances or perquisites.
They would also be permitted to avail themselves of the benefits relating to medical and passage facilities. They would, however, not be permitted to take up any other employment during this period, he said. These steps are beingtaken along with other measures to help the airline cut its losses, he said. Three-day working week
Air India on Thursday gave its employees the option of a three-day working week. The national carrier, which has been suffering financial losses for the past two years, has offered its staff except pilots and flight engineers, this option for the initial period of one year. The `shorter working week' is being offered on a voluntary basis for permanent employees and those availing of it will get 60 per cent of their total emoluments.
Sources said the scheme was part of the steps initiated to streamline working of the airlines and to make it profitable once again.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.