Indian Airlines

Industrial Dispute Assignment

MBA-1

HRM

Indian Airlines

Submitted to:- Prof. Ekta Sharma

Group Members

Aakar Amin 1614004

Kiran Keswani 1614032

Dhruv Kothari 1614034

Krutika Mehta 1614045

Mili Mehta 1614046

Strike

Background:

It was year 2007, when the government of India announced that Air India would be merged with Indian Airlines. Therefore, as a part of merger new company called national aviation company of India limited was established.

Around 2006-2007, the company was showing signs of financial distress that is it was having combined losses of Air India and Indian Airlines which was around 7.7 million.

In 2011, Air India and Indian Airlines merged along with their subsidiaries to form Air India limited and a step to reduce their losses.

Reason for strike:

It was May 8, 2012 when about 100 pilots went on medical leave or sabbatical leave as a mark of protest and main reasons were:

 1.) Better salary, promotion and increment,

 2.) Treatment of equality between Air India and Indian Airline staff;

 3.) Reappointment of the employees who were forced to resign from the job;

4.) Career progression;

 5.) Integration across various cadres;

6.) Rationalizing pay scale;

7.) Giving latest technology training to the pilot for their career betterment.

After that original list of 14 demands were put and restoring of their 101 dismiss employees was demanded.

Viewpoints:

Employee:

There were no attempts made to standardize hiring policies for rank and file between both Air India and Indian Airlines. There were many differences made between employees of both companies such as working days for both were different, promotion policies were different, for same work both were given different incentives and allowances. These created dissatisfaction between workers.

Management:

They made appeal to the pilots to think about inconvenience caused to the passengers due to this strike and re-join their work. They assured that actions would be taken to resolve their issues and correct solution would be given to them. But if they would continue the strike then they would take action against them according to the laws.

Initial steps taken by Union Civil Aviation:

Warning was given by Union Civil Aviation to Air India to solve the issues and perform good in order to qualify for a bailout. And then they announced to go ahead and hire new pilots if the strike didn’t end soon. In both the situation there was loss to Air India as it was already facing losses.

Appeal to high court:

Conciliation talks were conducted between the Air India management and pilots, who went on a 58-day strike in support of their career progression issues,

The parleys were held before the Deputy Chief Labour Commissioner, came in the backdrop of Delhi High Court asking both sides to hold talks on daily basis to expeditiously resolve issues relating to reinstatement of sacked pilots and career progression and report back to it.But both sides stuck to their respective positions during the day-long negotiations.