New Delhi: A day after announcing the pay cut for cockpit and cabin crew, Air India on Thursday approved a scheme for sending employees on leave without pay (LWP). The term for LWP can range from six months to two years, which can be extended up to five years, said the national airliner.
Informing about the latest development, Air India said, as quoted by news agency ANI, “Air India has approved a scheme for sending employees on leave without pay for a time period ranging from 6 months to 2 years which can be extended up to 5 years.” Air India Slashes Allowances of All Employees by 40 Percent, Here’s List of Reduced Allowances.
The Air India administration even stated that they have for this. The national airliner said, “Air India has constituted a committee for “identification of redundant/surplus manpower resources”. The Committee to submit its report to the regional director’s office by 11th August for review.”
Earlier on Wednesday, AI announced to cut the pay of its cockpit and cabin crew by about 40 per cent, with effect from April 1, 2020. However, the crew member stated that the cut is almost 85 per cent. Those employees earning Rs 25,000 have been spared from the pay cut.
Apart for the pay cut, AI has also announced to deduction 20 per cent allowances for the check, standby, flying wide-body, domestic layover and quick return. As per details, the cash-crunched AI spends Rs 230 crore monthly to pay wages to its staff. Meanwhile, it is still unclear how much AI would save from this move.