Streamlining operations, Tata Group-owned Air India offers Voluntary Retirement Scheme to its thousands of employees who have completed 55 years of age or 20 years of continuous service in the company.
As an additional benefit, the airline is reducing the VRS age eligibility from 55 years to 40 years for cabin crew members who are in grades “S-3, S-5, S-7, E-0, E-1, E-2, E-3, E-4, and E-5”, clerical and allied staff who are in grades “S-2, S-5, S-6 and S-7” and unskilled employees who are in grades “S-1, S-2, S-3, S-4, and S-5”.
Air India has around 12,000 employees, of which approximately 8,000 are permanent and 4,000 contractual. This move will help the airline let go of about 3,000 employees. And about 5,000 permanent employees were expected to retire over 5 years.
Voluntary Retirement Scheme
The airline is trying to get employees to come forward and take the option and also for some sections of employees company is offering additional benefits to lower the retirement age.
“The company offers ex-gratia amount to the employees, who apply for Voluntary Retirement from 1st June 2022 to 31st July 2022 as a one-time benefit,” said Air India chief human resources officer Suresh Dutt Tripathi dated on June 1.”
He further said, “Those who are opting for the VRS option will also receive an additional Incentive over and above the ex-gratia amount,”
“However, there is no such provision for pilots, and as airlines expand, there is a growing need for pilots.” He added.
“VRS has been offered to permanent employees of Air India as per the existing applicable service regulations/standing orders of Air India” He added. As per the disinvestment conditions, the Tata Group cannot lay off Air India employees for a period of one year from the date of transaction close and can offer VRS in the second year.
On Monday, Air India said it has invited applications from its employees up to the age of 40 having current Airbus A320 endorsement for the post of senior trainee co-pilots.”
