The Centre will continue to provide gratuity and PF benefits to the existing employees of Air India and Indian Airlines, the Ministry of Civil Aviation informed the Rajya Sabha on Monday.
Replying to a question on whether there will be any changes in benefits provided to employees after privatisation of Air India, Minister of State for Civil Aviation VK Singh said that interests of the employees have been taken care of by the government and incorporated “in the share purchase agreement signed with the Strategic Partner".
“In accordance with the applicable laws, the Strategic Partner, post disinvestment, shall continue to provide Gratuity and PF benefits to the employees," he said in his written reply placed before the Upper House.
The minister further said that the arrangement with the employees and Life Insurance Corporation for administrating the existing Air India and Indian Airlines employees Self Contributory Superannuation Pension Fund Trust will continue.
“Further, with regard to the medical benefits, they are to be made available to the retired and eligible retiring AI beneficiaries by the Government," he said.
In October this year, the government announced that Tata's Talace Pvt Ltd had emerged the highest bidder for Air India. The process for disinvestment of Air India and its subsidiaries had commenced in June 2017.
