Tata's Air India to get leaner; VRS offer to cover 3,000 employees

Update: 2022-06-02 10:02 GMT
Air India’s employee strength is 12,085, of which 8,084 are permanent and 4,001 are on contract. Besides, Air India Express, its low-cost arm, has 1,434 employees. | Representational pic

Months after taking up the reins of the embattled Air India, the Tata Group has announced a Voluntary Retirement Scheme (VRS) for its employees.

The option to retire early has been given to employees above the age of 55 or those who have completed 20 years of service. Employees who are above 40 and associated with cabin, administrative department as well as those in the unskilled workers category can also apply for the VRS.

The move is aimed at bringing in more efficiency in the airline company, which was acquired by the Tata Group in January this year. As per reports, about 3,000 employees are eligible for VRS. Air India’s employee strength is 12,085, of which 8,084 are permanent and 4,001 are on contract. Besides, Air India Express, its low-cost arm, has 1,434 employees. About 5,000 permanent employees were expected to retire in the next 5 years.

“Employees who apply for the Voluntary Retirement Scheme between June 1 and 30 June are being asked to get in touch with the head of personnel department of your region,” the memo signed by Suresh Dutt Tripathi, Chief Human Resources Officer, Air India said.

Tripathi further said: “An ex-gratia amount will also be provided to the aforementioned employees, who apply for Voluntary Retirement from 1st June 2022 to 31st July 2022 as a one-time benefit.”

Also read: A history of Air India: The Maharaja’s journey through the years

Looking at the shortage of trained pilots, Air India is not keen on retiring the pilots. Recently, the company invited applications from its employees up to age of 40 having current Airbus A320 endorsement for the post of senior trainee co-pilots.

As per the terms and conditions on which disinvestment of Air India was agreed upon, the Tata Group cannot sack Air India employees for at least a year from the date of transaction close, and can offer VRS in the second year.

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