In a recent development, Air India, the national carrier, has bid farewell to approximately 180 employees across various departments on March 12. This move follows the airline’s offering of two rounds of Voluntary Retirement Scheme (VRS) to its legacy employees. Despite the availability of VRS options, these employees, primarily in non-flying functions, found themselves without a suitable role within the organization.
Responding to queries from CNBC-TV18, Air India clarified that the affected employees were given the opportunity to opt for voluntary retirement. However, they chose not to avail themselves of this offer. The airline emphasized that the decision to let go of these employees was based on organizational needs and individual merit, following a comprehensive assessment process spanning the past 18 months.
Air India, which had around 13,000 employees at the time of its acquisition by the Tatas, has since increased its workforce to approximately 18,000 by hiring new talent. The airline’s new management has set ambitious targets to position Air India as a leading global carrier, necessitating a workforce that aligns with the standards set by its global competitors.
Affected employees hail from various departments, including canteen services, hygiene, and AC equipment services. The abrupt departure has left many employees disheartened, with some expressing sadness over the lack of adequate notice provided.
According to information accessed by CNBC-TV18 from the HR department, around 53 employees from the northern region were instructed to leave on March 12, with their separation date set for March 13. As per the HR department’s notice, these employees will receive compensation equivalent to 15 days’ average pay for each completed year of continuous service.
Air India’s decision to terminate these employees is in line with its privatisation criteria, which mandates the retention of all employees for at least one year post-acquisition. Subsequently, the airline is required to offer VRS to employees who face termination from the second year onwards. The employees who were laid off had not opted for VRS and did not have roles aligned with the current organizational structure.
Fellow employees expressed sentiments that those affected should have considered opting for VRS, which would have provided a decent amount to cover expenses until alternative income sources were secured.
As Air India continues its restructuring efforts, the termination of these employees underscores the challenges faced by legacy workers in adapting to the evolving needs of the organization.
Comments