Air India proposes VRS to cut down staff
Financially stressed Air India has proposed a voluntary retirement scheme (VRS) for its executive cadre employees to bring down manpower costs. The Air India Board will deliberate on the scheme at a meeting Monday. "This is the first time that VRS is being proposed for AI employees. It is a big step for cutting manpower in the best possible way," a senior civil aviation ministry official told.
"If it gets through, the scheme will be put forth for approval of the government as special provisions for funds would have to be made for the same." VRS or 'golden handshake' is often described as the most humane way to reduce the existing strength of the employees. The scheme will be meant for the executive cadre of the airline which includes the management. It will not be applicable to the operations arm that has pilots, engineers and cabin crews within its fold.
The scheme is part of the company's turnaround plan which was approved in April by the cabinet.