Air India to recruit employees on contractual basis
National carrier Air India is all set to overhaul its hiring policy and will be recruiting employees hereon on contract basis only. This move which is aimed at paring their overall wage costs by atleast one fourth to one third underscores the strategic shift that the airline is trying to take especially when it seeks to turn profitable by 2022.
Government sources have said that from this financial year all employees henceforth will be hired on a contract basis. This is important given the fact that currently, the average age in Air India is around mid-50s. The airline anticipates that in about 18-20 months from now, about one third of its total employees would be retiring. This is a total of 7500-8000 employees out of the total employee strength of 23,000 employees. The details of this is still being discussed. Once it is finalized, this proposal may also be put up before the cabinet. The airline is expecting to have the contract period somewhere between 1 to 2 years.
15/04/14 Ronojoy Banerjee/CNBC-TV18/moneycontrol.com
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