Air India employee unions pledge support to Tata Sons, but concerns persist

Mood upbeat among AI employees over disinvestment but concerns persist over arrears, salary cuts, medical benefits

Air India employee unions have written to Tata Sons' chairman emeritus Ratan Tata welcoming the decision to acquire the airline and assured him of support in the turnaround efforts.

While the mood is upbeat on change in ownership there are concerns too among staff, particularly with respect to arrears, salary cuts, staff accommodation. Employees of ground handling and engineering subsidiaries are worried whether the new owner will continue to provide medical and passage benefits (free tickets) to them.

“The father of Air India and our beloved founder, late J R D Tata, is revered and worshipped amongst all our staff and in all our offices. We look forward to a mutually bright future for the entire Air India family as a part of the Tata group and work together with the entire Tata family,” All India Cabin Crew Association general secretary Sanjay Lazar wrote in his letter. A similar sentiment was expressed by Parag Ajgaonkar, general secretary, Air India Employees Union while ensuring co-operation. “This takeover is of immense emotional value for us Air India employees who have always been grateful to Sir J R D Tata for building an airline that is our bread and butter today,” he wrote.

“We can heave a sigh of relief. At least there will be stability in the airline,” a senior executive remarked. Some hope that with private ownership salary payments will not be erratic. But the unions are also aware that some harsh decisions may be taken by Tatas to turnaround the airline but still Tatas are seen as much better employers than others. “There is a different sentiment about the Tatas,” an employee said.

Yet everything is not hunky dory. The government has committed to pay arrears of Rs 1,200 crore to Air India staff and has also agreed to take care of medical benefits for retired employees.

Employees want the arrears to be paid in one go and are seeking a breakup of the Rs 1,200 crore that is being promised by the government. Finding a new home will also be a concern for many as employees have to vacate staff quarters in six months after the transaction date. “Some employees rented out their own accommodation and shifted to the colony during Covid to earn some extra income and now they are worried,” an employee pointed out.

Both Indian Commercial Pilots Association and Indian Pilots Guild have also demanded the management to rescind the pay cut that was undertaken last year. “We receive allowances per hour flown at a fixed rate and that was cut by around 40 per cent last year. Now that the traffic situation has improved, the pay cut should be withdrawn,” a senior pilot said. “We have made enough sacrifices for this organisation during the pandemic and can’t keep bleeding to sweeten the pot for sale of Air India,” Captain Praveen Keerthi, general secretary of the ICPA wrote to the management on Saturday. A senior executive said all efforts are being made to address all HR related issues prior to the sale.

The big concern for Air India engineers is continuity of their service conditions. The civil aviation ministry and Air India had given an undertaking in the Supreme Court that service conditions of engineers will be retained post hive off of engineering MRO. Until now, for example, engineers continue to enjoy the same medical benefits that they enjoyed prior to 2013. "Air India Engineering Service Limited must continue to provide equivalent benefits. Talks are on and we are hopeful of a resolution but otherwise we would have to approach courts,” said advocate Jane Cox who represents the Executive Aircraft Maintenance Engineers Association.