AI staff oppose move to hive off engineering unit

Nearly 1,200 engineers belonging to the state-owned Air India have protested the proposed move to hive off the airlines engineering division into a separate company as cleared by the Cabinet earlier this month

Nearly 1,200 engineers belonging to the state-owned Air India have protested the proposed move to hive off the airlines engineering division into a separate company as cleared by the Cabinet earlier this month.

In a memorandum submitted to the civil aviation minister Ajit Singh,the engineers association,along with seven other trade unions under the banner of Joint Action Forum (JAF) have protested new work conditions that would apply to them once they are transferred.

In a presentation by the engineering division head to the government,it was submitted that the employees absorbed in the new entity would be governed by new terms and conditions, said a senior member of the JAF. We are not averse to the formation of a separate Maintenance Repair and Overhaul unit,but the status quo on employment should be maintained, the member said. Nearly 7,000,including technicians and helpers would be absorbed in the proposed subsidiary Air India Engineering Services Limited (AIESL).

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The new unit,said sources,is likely to break even in three years and would be capitalised by a government grant to the tune of Rs 375 crore.

Air Indias repair services are at least 20 per cent higher than what it costs to get the service checks done in another country like Indonesia. The engineering division does not have international certifications mandatory to attract third-party business.Under such circumstances,how will a separate company be profitable in three years? said a member.

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