New Delhi/Mumbai, Nov 30 (IANS) National carrier Air India Wednesday said it will release the productivity-linked incentive (PLI) component of its employees’ salary for August on Dec 5.
The PLI constitutes nearly 50 percent to 60 percent of the salary of nearly 40,000 employees of the airline.
The PLI was stopped since August due to financial constraints faced by the company.
Air India’s general manager for finance H.J. Mehtaji Wednesday said in a letter to the employees: ‘It has been decided to release PLI payable in August 2011 on Dec 5.’
‘The delay was due to repayment of aircraft loans, interest on working capital to banks and other overdue vendor payments,’ he said.
A senior Air India official told IANS that it was about time that the company paid up as employee morale was very low.
‘Prices of everything are so high and in this environment functioning with only half or less than that of the salary is very difficult. This (news) should cheer up the employees whose morale is very low at the moment,’ the official told IANS.
Earlier, one of the airlines’ pilot unions had threatened to go on a strike if their interim settlements are not paid up.
The Indian Commercial Pilots Association (ICPA) had demanded that the government must implement the Justice C.S. Dharmadhikari Committee Report by November-end and also stick to its assurance of expending the interim settlement for the pilots.
‘We have already written two letters – in September and October this year – to Civil Aviation Minister Vayalar Ravi on these and other pending issues. However, they have not responded to our communication,’ an official spokesperson for ICPA had said.
Meanwhile, the letter does not divulges any details of PLI payments for September-till-November.
Even Civil Aviation Minister Vayalar Ravi informed the Rajya Sabha on Nov 24, that the carrier still owes Rs.350 crore towards its employees wages.
Apart from this the national carrier owes Rs.2,300 crore to oil companies, Rs.75 crore to airport operators, Rs.367 crore to other vendors.
