Air India-employee tussle set for round 2 before Tribunal

Air India responded by citing the Dharmadhikari Committee Report. The committee had been appointed by the government to give recommendations on integrations of the work force of Air India and erstwhile Indian Airlines in a smooth manner. The Committee had recommended pay-cuts to streamline operations.

Air India also cited the weak financials of the company. The company had cited how it had been seeking capital infusion of Rs 49,100 crore. Air India submitted that it had been seeking to lower its salary bill from Rs 3500 crore to Rs 2500 crore.

Finally, Air India had submitted that the as per the Industrial Disputes Act, it was exempted from serving any notice upon the Employee Unions, prior to making pay cuts.

Importantly, Bombay HC, in its order, rejected Air India’s arguments on exemptions and maintained that the airline was indeed required to serve a notice upon the employee unions before making pay-cuts.

This comes as big legal relief for Employee Unions who had been pressing hard for denying Air India the exemption. However, it has little bearing on the status of salaries. The HC has directed Air India to maintain status quo with respect to the pay-cuts.

Meanwhile, even as Employee Unions gear up for round before the tribunal, sources have also hinted that Air India is likely to challenge the Bombay HC before the apex court.