The move will mean that the new owner of the airline, which is a top priority company for divestment this year, will have new terms for employees and will be able to modify compensation packages in a way that benefits sections where it wants to make them more attractive. sources familiar with the privatization program told TOI.
Air India employees are entitled to various benefits that go beyond the usual health plan and provident funds to also include free tickets for various segments. Although the number of free tickets that can be issued in a year is fixed, it was granted beyond the immediate family, which generally comprises the employee, spouse, and dependent children. Last year, the Air India Employees Union it had asked the Ministry of Civil Aviation that the medical plan for service employees and retirees, the provident fund and the collection of licenses continue in their current form even after privatization, arguing that it is essential for their well-being. Since some benefits go beyond normal industry practice, some of the bidders are concerned about offering liberal packages to the entire workforce, prompting the government to deliberate internally. A government official said it is only fair that the Center Fulfill your part of the commitment, which can only be restricted until such time as you own.
Workers and employees, however, believe that they joined the company with benefits in mind and worked under the assumption that the terms of the contract would remain unchanged. In fact, employee benefit is one of the factors that has delayed the entire process beyond the privatization deadline, with some of the other issues yet to be decided. Covid-19 has also delayed the process. However, a senior official said that the company, which will receive a new sum of Rs 1.9 billion from the government once the supplemental grant claim is approved, is on track to be privatized during the current financial year as the Center is also interested in bleeding. The Center aims to call financial tenders in September and every effort is being made to ensure that the sale closes in the current fiscal year. “It may take a little longer, but some of the issues that are decided here will also be used in the case of other companies that will be privatized in the coming months,” said the senior official.