Air India abolishes productivity-linked incentives

The Air India management has decided to discontinue payment of productivity-linked incentives (PLI) to its employees with effect from 1 July 2012. Employees of Air India will be paid salary and allowances as per the guidelines of the Department of Public Enterprises (DPE).

The decision follows the acceptance of the Justice Dharmadhikari Committee report on pay and wage rationalisation of Air India by the union civil aviation minister Ajit Singh, an official release said today.

However, the civil aviation ministry will approach the union cabinet for payment of flying allowances and some other allowances to be paid to the pilots, licensed engineers and cabin crew as per the industry standard.

The Justice Dharmadhikari Committee report has recommended profit/productivity related pay (PRP) in place of PLI, to maintain efficient working of employees.

However, PRP will be determined on the achievement of key performance indicators (KPIs) like yield, aircraft utilisation, passenger load factor, on-time performance and revenue achievement. For being eligible for PRP, however, the company will have to start making profit.

Air India management has already constituted an implementation-cum-anomalies rectification committee for implementation of pay and allowances to its employees on the basis of the recommendations of the Justice Dharmadhikari Committee. This exercise is expected to be completed by the end of next month, the release added.