4,500 Air India Employees Seeking Voluntary Retirement
In order to cut costs, it is overhauling the airline, enhancing productivity, and revitalising archaic systems with digital technology, according to a newspaper report.
A voluntary retirement scheme offered by the new carrier’s management has been opted by approximately 4,500 Air India employees on 21 July, 2021, as per the media organisation report. Tata group had strategised this scheme in order to hire new talents across operations in order to rejuvenate. In order to cut costs, it is overhauling the airline, enhancing productivity, and revitalising archaic systems with digital technology, according to a newspaper report.
In total, Air India employs 12,085 people, of which 8,084 are permanent employees, and 4,001 are on contractual basis. The low-cost airline of the company has 1,434 employees worldwide. In the next five years, about 5,000 Air India employees are expected to retire. Sources said that the transformation will take time, and they all must be prepared for the long haul. The company is also investing in topnotch aircraft, so they also need to hire top-notch engineers with international experience to operate the new equipment.
VRS was announced by Air India in June aimed at permanent employees who have completed 55 years of service with the company or have worked continuously for the company for 20 years. The eligibility age for some cabin crew members, clerical and unskilled staff has been reduced from 55 to 40 years of age as part of the new VRS. After Tata Sons purchased Air India for Rs 2,700 crore on 27 January, the government required its employees to stay on for a year following the share purchase agreement.