The Indian Finance Ministry has questioned the rationale behind Air India’s plan to trim its 27,000-strong workforce by offering a voluntary retirement scheme (VRS). The scheme will cost Rs 1,200 crore, but the ministry has questioned whether it is necessary since 7,000 employees will retire from service over the next three years anyway, while 12,000 will be transferred to the ground handling and engineering subsidiaries, leaving 8,000 employees left at Air India over the next five years. There is also the concern that rather than retain talented employees, they will migrate and the “deadwoods” would remain there till superannuation.

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