‘Disinvestment will not impact PF and gratuity’: Air India

The Government has taken this decision in the interest of the staff

0
1227

Many employees of Air India were quite uncertain about their employment and benefits after the privatisation of the national carrier. But now, the Government has cleared the air. State Civil Aviation Minister General VK Singh announced that all gratuity and provident fund (PF) benefits of Air India staff will stay intact post disinvestment as well.

After the Government completed the disinvestment of Air India on October 8 and Tata Sons came out to be the highest bidder, many employees were uncertain about job security at the firm. In the Parliament, Singh announced that the procedure that existed involving the employees and Life Insurance Corporation of India for managing the existing Air India and Indian Airlines employees’ Self Contributory Superannuation Pension Fund Trust will continue even post disinvestment. This was part of the share purchase agreement entered into by the Government and Tata Sons.

Also, soon after the disinvestment process was completed, the Government directed Tata Sons that the Company cannot sack any employee till one year after disinvestment. The Company is free to run a voluntary retirement scheme post one year if it so wishes. This clause was part of the agreement which was signed between the Government and Tata.

As of now, Air India employs about 12,085 employees, of which, 4001 are working on contract.

According to Singh, this decision has been taken keeping in mind the interest of all staff of Air India.

Comment on the Article

Please enter your comment!
Please enter your name here

eleven − seven =