News »Browse Articles » Air India to cut employee costs by $100 Million

Bangalore: Air India, after announcing a delay in salary for its employees, now plans to cut employee costs by $100 million annually, reports Reuters. Air India which is currently facing a liquidity crunch has an employee cost of more than $3000 million.
"Besides reduction in wage cost, Air India is also looking at improving productivity of employees, elimination of restrictive work practices and reducing wasteful expenditure," it said in an e-mailed statement to Reuters.

Air India`s Chairman and Managing Director, Arvind Jadhav has asked senior employees to do without salaries and incentives next month. Although the carrier has not sacked any employee, it has constituted a four-member committee to examine the wage agreements, including flying allowances and productivity-linked incentives. The panel is to submit its report by July 15.

Air India has approached the government for funds both through equity and soft loans. Earlier this month India`s aviation minister had said that an initial public offering (IPO) of shares in the firm could be considered in the near future.

Source:
http://siliconindia.com/shownews/Air_India_to_cut_employee_costs_by_100_Million_

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