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AIR INDIA MERGER

A TALE OF MESSED UP INDUSTRIAL RELATIONS


Presented by:
Shruti Gupta
Roll no. 178
A!"S # "$E !ASE

NA!I% &or'ed as a 'er(er o& Air India and Indian


Airlines in )**7. Rena'ed as Air India %td in )*1*.
IPG trade union o& Air India.
I!PA is a representati+e body &or the pilots o& Indian
Airlines.
Pro,t o& 1*** -rore e.pe-ted a&ter 'er(er
re/uent stri0es resultin( in disruption o& operations
a&ter 'er(er
)*1*
1al02out by 13*** e'ployees
o& ) 'ain unions 45*6 o& total
e'ployees7
Issue2 1a(e -ut and delayed
salaries
Ga( order issued by
'ana(e'ent.
"hreatenin( to ter'inate the
ser+i-es o& 8or0ers and de2
re-o(ni9ed both the unions
Go+ern'ent and hi(h -ourt
supported 'ana(e'ent
"rade unions re'ain ,r' and
-ontinue stri0e
%oss o& 1) -rores and :****
passen(ers a;e-ted.
3** pilots a<liated to I!PA
8ent on stri0e on issue o& pay
parity 8ith pilots in Air India.
1* day stri0e
Mana(e'ent tries to de2
re-o(ni9e I!PA.
I!PA re'ains tou(h on their
stand
Mana(e'ent su--u'bs to
their de'ands o& pay hi0e.
=*6 do'esti- >i(hts a;e-ted.
No 8or0 no pay poli-y
i'ple'ented
Salary in-reased
)*11
)*1)
58 days stri0e &ro' 7
th May to :rd ?uly.

Re+enues lost 8orth 3)5 -rores

@arious international destinations non2operational till au(ust.

Main Issue2 Di+ision o& pilots &or trainin( &or Aoein( 7)7 Drea'liner.

B:B pilots on stri0e. $ad de-lared si-0.

IPG dere-o(ni9ed. Pilots ter'inated


ININI"E %##P
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Problem
emer#e
bet$een
mana#ement
an%
Pilot&$or'e
r
Lac' of
proper
comm"nicati
on creatin#
%ea%loc'
Fli#ht
cancelle%.
(eneral
p"blic
a)ecte%
(overnment
an%
mana#ement
ta! *rm on
their
%eciion
Union $ere
%ereco#ni+e
%
Emplo!ee
$ere
%imie%
Operation
re"me
S"AND # "$E PAR"IES
1or0ers o& AI

5 hours
be&ore
deadline to
end stri0eC
union 8as
dere-o(ni9ed

No de,ned
-areer
pro(ression
path

$un(er stri0e
to (rab
attention at
?antar Mantar

All o& the B:B


pilots sub'it
a<da+it to
end stri0e
Mana(e'ent

Pilots did not


spea0 to the
'ana(e'ent
re(ardin(
their
proble's

IPG +iolated
the tripartite
a(ree'ent
8ith
'ana(e'ent
and I!PA
Go+ern'ent

"a0es a stri-t
stand

1arnin(s o&
stri-t a-tion

Dis'issal o&
pilots

Dere-o(ni9ati
on o& unions

"hey &elt that


stri0e 8as
unDusti,ed
PR#A%EMS
Mer(er bet8een Air India and Indian Airlines in )**7.
Na'e o& Air India re'ains a&ter the 'er(er. Indian
Airlines sense a loss o& identity.

No atte'pts to inte(rate 'ultiple unions. In-rease in


ani'osity.
%eadership -risis as &re/uent -han(e o& !E#Es.
Mer(er done 8ithout proper strate(y and hastily
@ital issues o& hu'an resour-es i(nored
Salaries 8ere not paid on ti'e and debt 8as
a--u'ulated.
Di;eren-e in pay s-ales and pro'otions
%a-0 o& -o''uni-ation bet8een 'ana(e'ent
and 8or0ers
Mana(e'ent not ready to loo0 into (rie+an-es
1or0ers not ready to so&ten their de'ands.
I(norin( the issues by 'ana(e'ent &ro' the
past 5 years.

A&ter stri0e 'ana(e'ent a(ain 8asnEt ready to


ne(otiate on the reinstate'ent o& the pilots.
"oo 'u-h in+ol+e'ent o& (o+ern'ent.
re/uent -han(e in the A+iation 'inistry.
Instability at the top.

PR#A%EMS
SFGGES"I#NS

$R poli-ies should be rede,ned /ui-0ly and


properly
Fni&or' pay s-ale and bases &or pro'otions
should be dis-ussed
Proper tal0s bet8een unions o& AI and IA to redu-e
ani'osity bet8een the'
!olle-ti+e bar(ainin(
Proper %eadership 4!E#78ith autono'y to ta0e
de-isions and less in+ol+e'ent o& (o+ern'ent in
day to day operations

$andlin( the redundan-y o& roles a&ter the


'er(er. ?ob -larity
In&or'ati+e and -onsultati+e parti-ipation.