MUMBAI: Staffers of Air India Engineering Services Ltd (AIESL), a wholly owned subsidiary of Air India, moved Bombay high court recently against the company’s decision to set aside a part of their salary to clear outstanding Provident Fund (PF) and tax dues. The court granted a 3-week stay on implementation of the management’s decision.
From April 2019, AIESL had stopped depositing PF amount deducted from staffers’ salaries into the PF Trust. This came to the fore on July 13 when the company informed staffers that AIESL board had decided to ‘set-aside’ 20% of their gross salary to create cash flow to pay these outstanding dues.
According to Air India unions, the latest cut combined with last year’s pay reduction would take the total cut to about 35-42% of AIESL staffer’s gross salary. The staff approached police to file an FIR against Air India directors for default. Engineers belonging to Executive Aircraft Maintenance Engineer’s Association filed a writ petition.
AIESL CEO Jose Mathew in a letter sent to staffers said AIESL board had on July 28 examined the possibility of arranging funds from various sources. “The board is prepared not only to permit reversal of its earlier direction of withholding salary immediately but also prepared to return withheld salaries at the earliest,’’ said the letter appealing to staffers to withdraw all court cases and FIRs in order to `create a conducive atmosphere for the board to issue the suitable order.
