According to two persons with knowledge of the situation, Air India is putting the finishing touches on new job contracts for its middle management that would increase pay for workers whose incomes stayed the same after the airline was privatised.
According to the conditions of the Air India sale in January 2022, Tata Group was required to keep every employee on board for at least a year at their current pay rates.
Many staff in non-operational areas like human resources and finance will receive a boost in compensation as a result of the new job contracts going into effect this fiscal year because they will be indexed to pay scales in the private sector.
"The wage structure at Air India was comparable to that of any government-owned corporation. A young employee may receive similar or somewhat higher pay under such structure than a Group D employee (peon, drivers etc.).
Hence, even though many people’s salaries may rise, those in lower socioeconomic groups would not see the same benefits, one of the two people mentioned above who requested anonymity stated.
Air India has completed its employee share benefit programme for permanent staff, issuing 980 million shares valued at nearly a 3% ownership in the airline, in addition to the new pay structure and VRS.
The book value of each share has been fixed at 87 pence under the programme, with employees paying 27 pence plus taxes for each share. SBI Caps Trustee Co. Ltd. carries out the scheme.
In order to retain talent at a time when employers are hard to find, the airline is also likely to offer pilots and cabin crew a raise of up to 10%.
In addition to adding additional jets to its 470 aircraft order, Air India intends to grow through employing leased aircraft.
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