National carrier Air India on Thursday said that recent decisions of the Air India Board regarding rationalisation of staff cost were reviewed today and it was reiterated that no employee will be laid off and the flying crew will be paid as per the actual number of hours flown.
Taking to Twitter, Air India wrote, "Recent decisions of the Air India Board regarding rationalization of staff cost were reviewed in a meeting at the Civil Aviation Ministry this evening. The meeting reiterated that unlike other carriers which have laid off a large number of their employees, no employee of Air India will be laid off."
There has been no reduction in the basic pay, DA and HRA of any category of employees, the airline informed.
"The rationalization of allowances had to be implemented on account of the difficult financial condition of the airline that was exacerbated by COVID-19," Air India tweeted.
"The flying crew will be paid as per the actual number of hours flown. As domestic and international operations expand to reach pre-COVID levels and the financial position of Air India improves, the rationalization of allowances will be reviewed," it added.
Air India had on Friday said that its financial situation was "very challenging" and was taking recourse to several initiatives with a view to ensuring the continuance of its operations.
The airline has introduced the Leave Without Pay (LWP) Scheme on July 14, 2020. The scheme primarily enables employees to avail of the benefits of proceeding on leave without pay on a voluntary basis.
"The LWP scheme has been introduced for grant of leave without pay and allowances for permanent employees for a period of six months/two years, which is extendable up to 5 years," Air India added.
( With inputs from ANI )