New Delhi, September 28
With the agitating executive pilots of the Air India threatening to intensify their “strike” after talks with the management failed, the Ministry of Civil Aviation on Monday stepped in to resolve the crisis plaguing the beleaguered national carrier.
“We will advise the management to enter into a comprehensive dialogue with all sections of employees. This strike must end immediately,” Civil Aviation Secretary M Madhvan Nambiar said, after maintaining a silence on the issue for past three days.
He said the Air India management had not taken any decision on the cut of Productivity Linked Incentives (PLIs) or any allowance for the section of employees. “Decision regarding the executive employees will be taken only after the committee, set up to look into this matter, examines all aspects,” he added.
Nambiar cautioned that disruption of the flights was causing immense problem to the passengers and bringing disrepute to the airline. “In these circumstances, the pilots and all employees must cooperate with the management for the turnaround of the airline,” he said.
The Ministry also denied any possibility of a lockout in Air India. In a statement issued tonight, it categorically rubbished the chances of a lockout after some Air India officials indicated that they were planning to suspend all flights, starting midnight.
Earlier in the day, agitating AI executive pilots threatened to intensify their “strike” after talks with the management failed to resolve the impasse. Since the deepening crisis could have forced the airlines to suspend operations, sources said Prime Minister Manmohan Singh asked the Civil Aviation Minister Praful Patel to intervene.
So while earlier the AI officials said the airlines had stopped accepting bookings, later the Ministry officials said no decision had been taken on the issue.
Representative of the agitating pilots Captain VK Bhalla termed the happenings of the day, including talks about suspending operations, a “pressure tactic” employed by the management to dampen the morale of the pilots.
A worried Civil Aviation Ministry has now called a meeting of all airlines tomorrow to discuss the situation arising out of the agitation and ensure that passengers do not suffer in the process. The strike entered the third day today, forcing cancellation of at least 20 flights from the Capital alone.
After holding talks with Mumbai-based pilots on yesterday, Air India CMD Jadhav today flew in to hold talks with Delhi-based pilots to attempt a breakthrough, but without much success. Bhalla said talks had ended in a stalemate with the management refusing to give a positive reply over the payment of due salary and withdrawal of productivity-linked incentives (PLI)-cut order, adding that the stir would intensify.
Claiming that the management refused to look into their demand on
payment of three months’ arrears and agreement on wages besides a neutral party intervention, Bhalla said besides the 400 executive pilots, line pilots were also now joining the agitation.
After the talks, Air India issued a statement saying orders had been issued for payment of PLI and flying allowances of July, payable in August and it would be disbursed immediately.
Jadhav yesterday held talks with some agitating pilots in Mumbai, after which the management decided to set up a committee to look into pilots' concerns over the cut in their PLI.
The pilots affected by the new salary cuts are not part of the management but of the management. The management’s stand is that the executive pilots should understand the difficulties being faced by the cash-strapped carrier and abide by the decision taken to help the airlines tide over the financial crunch.
Air India has been under pressure to cut costs. Everyday, it owes Rs 4.7 crore in interest alone. The airlines current debt is about Rs 16,500 crore and losses Rs 7,200 crore in fiscal 2008-09.
The AI agitation began after the management's decision to slash PLI of employees by 25-50 per cent as part of cost-cutting measures. Official figures put the cut in productivity-linked incentives at 25-50 per cent. The pilots, however, say there are hidden factors that make the cut deeper, at about 70 per cent.
Meanwhile, the BJP has demanded a white paper on “mayhem in the Civil Aviation in the past five years”. BJP spokesman Rajiv Pratap Rudy said the Prime Minister, in his Independence Day speech, had said he would take special care to sort out the problems of Air India. “But here is a situation where it seems the management is working to shut down the airlines,” the former Civil Aviation Minister said.
