Air India to cut employee costs by Rs 500 cr

New Delhi, Jun 22: Giving in to the pressure of recession, Air India may resort to steps to reduce its employee cost by 16 per cent and in turn to cut its Rs 3,000 crore wage bill by Rs 500 crore.

This cost reduction move may comprise of pay cuts, and changing the system of incentives and flying allowances. According to media reports, a four-member committee is expected to submit the cost reduction plan by July 15.

The state-run company delayed the payment of salaries for the month of June by 15 days. This was not taken well by the employees who threatened of going on an indefinite strike if it was repeated in July.

The airline later also asked its senior staff to forgo the salary for the month of July.

OneIndia News