Air India once again fails to pay salaries to 11,000 employees on time
11 August 2018
Air India has once again delayed paying salaries to its employees for the fifth consecutive time, but has assured them of their payments being cleared by next week.
There have been delays in the payment salaries over the past five months as the ailing airline battles it out to get funding from the government. The state-owned carrier – in which the government wants to sell part of its stake to some other Indian carrier, or even 49 per cent to foreign airlines – is still to get Rs980 crore in additional funding from the government.
“We regret to inform the delay in payment of salaries for the month of July due to circumstances beyond the control of the management,” the airline told its staff in a note. “However, all efforts are being made to make the payments by next week.”
The 11,000 permanent employees of the airline normally get their salaries by the last day of the month, but since March there have been delays.
The Indian Commercial Pilots Association (ICPA) and the Indian Aircraft Technicians Association have complained to the chairman and managing director of the airline about the delays in salary payments.
“Financial uncertainty is a source of frustration, anxiety and stress which results in undue fatigue, adversely impacting flight safety and the overall performance levels of employees,” the ICPA warned in its letter.
According to the association, poor management was the primary reason for the ongoing crisis in the airline.