The Voluntary Retirement Plan (VRS) will allow Air India to cut down about 2,000 of its permanent employees. Over 1,500 employees took advantage of the first VRS offer made by the new management in June 2022 after the Tatas acquired the national carrier.
There were around 8,000 regular employees working for the carrier when the government sold it to Tata Sons.
According to a report on livemint.com, the airline has put aside Rs. 200 crore for the project. “It will cost over Rs. 200 crore if all the 2,000 eligible employees avail the second VRS offer,” an executive said to the publication.
Air India issued its second voluntary retirement offer for its non-flying staff earlier last week. The current offer, according to the airline, will be open to permanent general cadre officers who have completed at least five years of continuous employment with the airline and are 40 years of age or older.
In addition, employees in the clerical and unskilled categories who have served the company for a minimum of five years consistently are also eligible for voluntary retirement. The promotion is valid till April 30, according to Air India.
2,100 staff will be eligible to take advantage
Approx, 2,100 staff will be eligible to take advantage of the recent voluntary retirement offer, according to sources who have been closely monitoring the issue, according to news agency PTI.
“The employees who apply for voluntary retirement from 17th March 2023 to 30th April 2023 will also be provided with an ex-gratia amount as a one-time benefit,” airline’s Chief Human Resources Suresh Dutt Tripathi told PTI.
By providing the employees seeking for voluntary retirement between 17 March and 30 April with an ex-gratia sum as a one-time benefit, the airline has increased the scheme’s profitability. A 1 lakh incentive will be given to eligible employees who apply before March 31 in addition to the ex-gratia payout.
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