News: Air India seeks Rs 1,100 crore more to implement VRS

#Updates

Air India seeks Rs 1,100 crore more to implement VRS

Air India, in its bid to rationalize its surplus manpower has asked the government for an additional Rs.1,100 crore to implement the voluntary retirement scheme (VRS). The VRS is targeted at AI employees who have either completed 15 years of service or are 40 years of age. They would be offered compensation equivalent to the salary for 35 days for each completed year of service and compensation equivalent to the salary for 25 days for every year of service remaining. This will help it reduce its headcount by 5,000, which many believe is an unrealistic number. The VRS option would be offered to cabin crew, administrative and clerical staff so as to reduce the age profile of the employees and the corresponding salary-level. To this end the airline has sought this amount in addition to the Rs 10,600 crore that it is supposed to get this year.

Air India, in its bid to rationalize its surplus manpower has asked the government for an additional Rs.1,100 crore to implement the voluntary retirement scheme (VRS). The VRS is targeted at AI employees who have either completed 15 years of service or are 40 years of age. They would be offered compensation equivalent to the salary for 35 days for each completed year of service and compensation equivalent to the salary for 25 days for every year of service remaining. This will help it reduce its headcount by 5,000, which many believe is an unrealistic number. The VRS option would be offered to cabin crew, administrative and clerical staff so as to reduce the age profile of the employees and the corresponding salary-level. To this end the airline has sought this amount in addition to the Rs 10,600 crore that it is supposed to get this year.

Source: The Economic Times

Topics: #Updates, C-Suite

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