Air India staff integration process to start in 45 days

A panel of officials has been set up for implementation of various recommendations on pay fixation, level-mapping of all employees and promotional avenues

New Delhi: Five years after merger of two state-run airlines, the Indian government on Friday announced that implementation of uniform structures for pay, allowances and career progression for Air India employees would start in 45 days, saying it was necessary if the airline is to survive, reports PTI.

"This (employees' integration) is necessary if merger (in Air India) has to succeed, if Air India has to survive. The government is giving Rs30,000 crore .... One thing is clear. Government will not give public money any more to Air India," Civil Aviation Minister Ajit Singh told reporters here.

He also asked the striking pilots that their demands relating to their career progression can be examined only after they returned to work. "They should unilaterally call off their strike. The (Delhi) High Court has also said the same thing. It is an illegal strike. We will consider all their demands after they join back," Singh said.

Announcing a roadmap for implementation of the Justice DM Dharmadhikari Committee recommendations on HR integration of the employees of erstwhile Air India and Indian Airlines, he said there would be parity in pay scales and uniform working conditions for all staffers. The airlines were merged in 2007.

However, the pay scales and allowance structure for pilots, engineers, cabin crew and technicians would be determined on the basis of industry norms. "Since these issues are not dealt with by DPE guidelines, the Union Cabinet's approval is required."

A panel of officials has been set up for implementation of various recommendations on pay fixation, level-mapping of all employees and their promotional avenues.

This panel, called the Implementation-cum-Anomaly Committee, would seek the views of all sections of employees and complete its task within the next 45 days, Singh said.

"We will be patient and persuasive in talking to the employees. They will realise their future depends on the future of Air India," he said.



Adi Daruwalla

4 years ago

The integartion will come at a cost. Cost being that IC pilots and crew will have to be trained for long haul flights and long haul services. IC does not serve liquor or warm meals on baord. Hope that the Dharmadhikari report has taken into account the dissimilarities between the two airlines.
Air India is a Boeing foccused company. Indian Airlines is an Airbus foccussed company. AI crew fly for many days on foreign routes, while IC crew fly on a daily basis and have no layovers abroad. The simulator tests for pilots are also different and costs are different. Cabin crew training is also differnt. Therefore a pay parity after training is permissible but not before training. The differnt aircraft have differnt types of cargo loading/offloading, catering loading/offloading and baggage loding and offloading. The jumbo 747 and the long haul flight have containarized loading while the A320 has a belly loading. It would be wise for the ministry to revise before it jumps to take action in the next 45 days.


4 years ago

The errant staff of Air India must be taught a lesson once and for all. Their salary must be linked to profitability of the airline. Their actions are really criminal and anti national. No leniency must be shown to them.

Newsviewer Exclusive
Prime Minister sets up mechanism to fast track project implementation

While implementation of public sector projects of over Rs1,000 crore will be tracked by the National Manufacturing Competitiveness Council, those in the private sector would be monitored by the Department of Financial Services

New Delhi: Amid declining growth rate and the need to arrest economic slowdown, Prime Minister Manmohan Singh on Friday approved setting up of an Investment Tracking System to ensure speedy implementation of mega projects envisaging outlay of over Rs1,000 crore, reports PTI.

The proposed mechanism is aimed at addressing delays in implementation of projects, said a statement from Prime Minister's Office (PMO).

While implementation of public sector projects of over Rs1,000 crore will be tracked by the National Manufacturing Competitiveness Council, those in the private sector would be monitored by the Department of Financial Services in the Ministry of Finance.

The decision to fast track investments would provide fresh impetus to the economy, which is grappling with slowdown. The economic growth rate during 2011-12 slipped to a nine-year low of 6.5% mainly because of slowdown in manufacturing and poor investment.

Several mega projects, including Posco's proposed $12-billion steel plant in Orissa, has been hanging fire because of regulatory clearances and land acquisition issues.

The decision to set up Investment Tracking System, the statement said, is in "the context of delays faced by projects on multiple fronts - security clearances, environmental clearances, other clearances and land related matters."

Issues concerning delay in implementation of projects was raised by India Inc at the last meeting of Prime Minister's Council on Trade and Industry in December.

The National Manufacturing Competitiveness Council and the Department of Financial Services would have to submit a quarterly report to the PMO of all projects monitored and issues that need to be resolved.

Through this tracking mechanism, projects would be periodically reviewed for any delays and specific or systemic issues will be identified for resolution, the statement said.

"While existing rules and laws have to be followed, it was widely felt that a lot of the delay is avoidable if only there is a will to resolve matters," it added.

The investment rate during 2011-12 declined to 29.5%, from over 30% a year ago.

Even Finance Minister Pranab Mukherjee had attributed the slowdown in economic growth to environmental issues and expressed hope that the situation would improve going forward.


Economy & Nation Exclusive
Vote against Shriram Transport's share-swap, says advisory firm

According to a proxy advisory firm, the proposed share-swap between Shriram Transport Finance and Shriram Holdings is tilted in favour of shareholders of the latter and would lead in increasing promoter shareholding

Shriram Transport Finance Company (STFC) is proposing to approve a scheme of arrangement with Shriram Holdings (Madras) Pvt Ltd (SHMPL) with itself through a court-convened meeting of shareholders on 14 June 2012. However, a Bengaluru-based proxy advisory firm has recommended institutional investors to vote against the scheme, as it feels the share-swap is tilted in favour of SHMPL shareholders and would lead to an increase in promoter shareholding.

“As SHMPL’s sole business is its holding of STFC’s equity shares, the rationale of allotting over five lakh shares (STFC will allot 9.39 crore shares in place of 9.34 crore shares held by it SHMPL in STFC) is not disclosed by the company. At a closing price of Rs490.10 per share of STFC on 23rd May, the shares allotted in excess, have a market value of Rs24.54 crore,” the advisory firm said.

Genesis Indian Investment Company, ICICI Prudential Life Insurance Company, Ontario Teachers’ Pension Plan Board, Stichting Pensioenfonds ABP, Merrill Lynch Capital Markets Espana SASV, Equinox Partners LP and Fidelity Investment Trust are leading institutional investors in Shriram Transport Finance.

“Without any stated reason, the proposed share-swap is titled in favour of the shareholders of SHMPL.

We recommend shareholders vote against the amalgamation, as there is no rationale for allotting additional shares to the shareholders of SHMPL. While the amount itself may seem insignificant, it is the principle that is incorrectly applied and consequently leads to an increase in promoter holding without any basis,” the proxy advisory firm said.

On 27 April 2012, the Madras High Court had directed the company to call a meeting of its shareholders and creditors for considering and approving the scheme of arrangement between SHMPL and Shriram Transport Finance.

At 12.26pm on Friday, Shriram Transport shares were trading 3.5% down at Rs509 on the BSE, while the benchmark Sensex was marginally down at 16,082.



Nagesh Kini

4 years ago

The shareholding pattern being so skewed in favour of the promoters no shareholders esp. the minority can put up any opposition.
Even postal ballot won't do.
Strong shareholder awareness and stiff well oiled organized voting is the remedy.

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