Air India Looks To Reduce Permanent Employee Count By Another 2,000 In 2nd VRS: Report

Tata-owned Air India is looking to reduce its permanent employee count by another 2,000 through the voluntary retirement scheme (VRS) and has set aside Rs 200 crore as part of the initiative, according to a livemint report. Air India last week made a voluntary retirement offer for its non-flying staff, the second such offer by the Tata Group after taking control of the loss-making airline in January last year.

“It will cost over Rs 200 crore if all the 2,000 eligible employees avail the second VRS offer,” an executive was quoted as saying in the report.

The latest offer will be available for permanent general cadre officers who have attained the age of 40 years or above and completed a minimum of five years of continuous service at the airline, according to a communication.

Also, clerical and unskilled categories of employees who completed a minimum of five years of continuous service will be eligible.

The offer will be open till April 30.

According to a PTI report quoting sources, a total of around 2,100 employees will be eligible to avail the latest voluntary retirement offer. Currently, the airline has a staff strength of about 11,000 people, including flying and non-flying staff.

In June 2022, Air India launched the first phase of the voluntary retirement offer.

Air India Chief Human Resources Suresh Dutt Tripathi in a communication has said there has been a request from employees for extending the additional benefit of voluntary retirement to other permanent employees as well. In response to this, Air India is announcing the second phase of the voluntary retirement offer.

“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.

“Eligible employees who apply up to 31st March 2023 will receive Rs 1 lakh over and above the ex-gratia amount,” the communication said.

In the first phase of the voluntary retirement offer, both flying and non-flying staff were covered. At that time, around 4,200 employees were eligible and out of them, around 1,500 people opted for the offer, according to the PTI report quoting the sources.

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