Air India to pay less salary, Salary of May on 28th June.

Update : Salary of May on 28th June.

New Delhi, Jun 21 (PTI) After a delay of about three weeks, about 30,000 employees of troubled Air India would get their salaries next Tuesday for the month of May, an airline official said today.Funds to disburse the salaries have been arranged from banks and the payment would be credited to the employees' accounts by June 28, the senior official said.

The employees usually get their salaries by seventh of the month.

The decision came a day after CPI MP Gurudas Dasgupta termed the delay in wages payment as "illegal" and demanded a probe into the poor financial health of the national carrier.

In a letter to Prime Minister Manmohan Singh, Dasgupta, who is also the AITUC General Secretary, said delay in payment of wages to Air India employees violated the Payment of Wages Act.
Earlier News
Air India employees will get only basic pay and no incentives — the bulk of their salary — at least for the next four months, the management has said.

The announcement comes a few days before a group of ministers meets to discuss a bailout plan for the national carrier.

Sources said the panel, headed by finance minister Pranab Mukherjee, would also review the progress made by the airline in cutting down losses.

Aggrieved over the delay in wages, major unions representing over 30,000 employees have threatened a flash strike.

In May, Air India employees, including pilots and air crew, were paid just 50 per cent of their salaries.

Unions claim that productivity-linked incentives (PLIs), which constitute 50-70 per cent of the salary, have also not been paid in April.

The cash-strapped airline was hit hard by a 10-day strike called by one of the pilots’ associations.

It caused cancellation of 1,600 flights and a revenue loss of Rs 150 crore. This was followed by the imposition of the “no work no pay” rule and many employees were not paid their salaries during that period.

“Although we are supposed to get a part of our Rs 800-crore dues from the government, it will not be enough to pay for the incentives they get as well. We will only pay basic salaries. For the next four months, no employee will be getting any PLIs,” said an Air India official on the condition of anonymity.

The ground crew union, engineers’ union and a few others said a flash strike might be the only way to force the management to pay their dues. 

Source : The Telegraph.