Air India justifies leave without pay, says it's in very challenging financial situation

Agencies
July 18, 2020

New Delhi, Jul 18: National carrier Air India on Friday said that it is in a ‘very challenging financial’ situation and is taking recourse to several initiatives, with a view to ensuring the continuance of its operations.

The airline, in a statement, noted that it has introduced the partially voluntary 'Leave Without Pay' (LWP) scheme on July 14.

"The scheme primarily enables employees to avail the benefits of proceeding on leave without pay on a voluntary basis. The LWP scheme has been introduced for grant of leave without pay and allowances for permanent employees for a period of six months or two years, which is extendable upto 5 years," the statement said.

"Air India had brought out similar scheme earlier... Several hundred employees have, in the past, availed of the LWP Scheme."

As per the statement, in the wake of the ongoing Covid-19 pandemic, there may be employees who are unable to attend their office duties in person on account of personal reasons.

"The LWP scheme enables employees to take a break from their office responsibility for a defined period of time with the approval of the management, while retaining their employment with the company," the statement said.

"They will continue to avail facilities such as passage, medical and housing at specified rates."

Accordingly, the LWP scheme provides the opportunity to employees to take up alternative employment with the approval of the management during the period of the said leave, the airline said.

"The LWP scheme is a win-win situation for both the management as well as employees as it provides flexibility to employees and simultaneously reduces the wage bill for the company," the statement said.

"It is important to note here that the Covid-19 outbreak has very seriously impacted the airline sector and currently, the airline operations of the company are a small fraction of the prior Covid level operations."

The airline said that employees are encouraged to apply for availing the benefit of the scheme, in the prescribed format, by August 15.

"The only addition in this scheme as compared to the earlier LWP scheme is that the management can pass an order requiring the employees to go on leave for a period of six months or two years (extendable upto 5 years) compulsorily taking into consideration 'Suitability, Efficiency, Competence, Quality of performance, Health, Non-availability of employee and Redundancy'," the statement said.

Furthermore, the airline said that this provision has been introduced for use, "very sparingly", with a view to ensuring that the overall efficiency of the organisation, improves and the management will ensure that this will be implemented with complete fairness and transparency as per prescribed procedure.

Consequent to the announcement of the scheme, Air India unions are discussing their strategy against the move which might involve legal recourse.

An Air India union leader on Friday told IANS: "This is going to affect the livelihood of many. Why not every employee of AI take LWP a few days every month. This way the burden can be shared."

"The motive of the top management is to save their money by snatching money from lower employees."

According to Air India PIM document, as on November 1, 2019, the airline, on a standalone basis (without subsidiaries), had around 14,000 employees, including fixed term contract staff.

The development comes as the Centre has re-initiated the airline's divestment plan with new norms.

Interestingly, this time, it has sweetened the deal by substantially reducing the debt on the airline's account books and offered a 100 per cent stake in the loss-making airline.

The last date for bid submission to acquire Air India has also been extended to August 31.

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News Network
March 29,2024

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New Delhi: The Congress on Friday said it has received fresh notices from the income-tax department, asking it to pay Rs 1,823.08 crore, and accused the ruling BJP of indulging in 'tax terrorism' to financially cripple the opposition party ahead of the Lok Sabha polls.

Adressing a press conference at the AICC headquarters here along with Congress general secretary Jairam Ramesh, party treasurer Ajay Maken alleged that the BJP is in serious violation of income-tax laws and said the I-T department should raise a demand of more than Rs 4,600 crore from the saffron party for such violations.

Ramesh alleged that through the 'electoral bonds scam', the BJP has collected Rs 8,200 crore and used the route of 'pre-paid, post-paid, post-raid bribes and shell companies'.

On the other hand, the BJP is engaged in 'tax terrorism', he alleged.

"Efforts are being made to financially cripple the Congress, but we are not going to be cowed down," Ramesh said.

He asserted that the Congress's campaign for the upcoming parliamentary polls will continue and the party will take its guarantees to the people of the country.

"We will not be scared of these notices. We will be more aggressive and fight these polls," the former Union minister said.

Maken alleged that the Congress and other like-minded opposition parties are being selectively targeted by the I-T department, which he described as the BJP's 'frontal organisation'.

The I-T department has launched a premeditated, diabolical campaign against the Congress by reopening matters of old returns on baseless grounds, he said.

Maken said the Congress will approach the Supreme Court soon over the I-T department's demands from it.

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News Network
March 19,2024

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New Delhi, Mar 19: The Supreme Court today came down heavily on Patanjali Ayurved for failing to respond to a contempt notice for issuing misleading advertisements and ordered yoga guru Ramdev to appear before it.

A bench of Justices Hima Kohli and Ahsanuddin Amanullah also summoned Patanjali managing director Acharya Balkrishna.

The Supreme Court last month pulled up Patanjali for prima facie violation of its assurances about its products and statements claiming their medicinal efficacy. The court had issued a notice to Patanjali and Balkrishna, asking why contempt proceedings should not be initiated against them.

It noted today that Patanjali did not file a response even though it had held a press conference after its previous order. "Why haven't you filed your response yet? We will ask the managing director to appear in the court during the next hearing," the court said.

The order states both Ramdev and Balakrishna were prima facie in violation of Sections 3 and 4 of the Drugs and Remedies Act, which deal with misleading ads of medicines.

The court also issued a contempt notice to Ramdev, co-founder of Patanjali, and asked him to explain why he should not face action for contempt of court.

Senior lawyer Mukul Rohatgi, appearing for Patanjali Ayurved, opposed the move and sought to know, "How Ramdev comes into the picture?"

"You are appearing. We will see on the next date. Enough," the court replied.

"We had our hands tied earlier but not now. As an officer of the court, you (Mr Rohatgi) should know your position," said Justice Amanullah.

The court was hearing a petition by the Indian Medical Association (IMA) alleging a smear campaign by Ramdev against the vaccination drive and modern medicines.

On February 27, it had issued a contempt notice to Patanjali and cautioned them against from making any statements against any system of medicine in the media. It had also pulled up the centre for not taking action and said they were sitting with their eyes closed.

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News Network
March 22,2024

The Enforcement Directorate on Friday produced Delhi Chief Minister Arvind Kejriwal before the Rouse Avenue court and sought a 10-day custody in the excise policy-linked money laundering case. "Kejriwal was the kingpin of the scam," the ED reportedly told the court after the AAP chief was produced before Special Judge Kaveri Baweja around 2 pm amid tight security. 

ASG S V Raju was appearing for the agency, while Senior Advocate Abhishek Manu Singhvi is representing Kejriwal. 

Raju in his argument said Kejriwal was "directly involved in formulation of the (liquor) policy... he was involved in handling of proceeds of crime as well in the Goa election campaign."

"The expert committee was constituted but it was a sham committee. The policy was made in such a manner that it would enable the taking of bribes and recoupment of people who gave the bribes," the ED counsel said. 

Kejriwal was produced in the trial court shortly after he withdrew from the Supreme Court his plea against arrest by the Enforcement Directorate in the excise policy-linked money laundering case. Kejriwal's counsel said he would contest the remand proceedings before the trial court and then come back to the apex court with another petition.

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