AI pays a month's incentives to staff

Faced with a strike threat by its pilots, Air India today paid a month's incentives and allowances to its 30,000 employees as it prepares for a crucial meeting of its board tomorrow to decide on major cost-cutting initiatives.

The board, which would meet in Chennai, is likely to take a decision on a proposal to scrap the productivity-linked incentives (PLI) paid to its top managerial cadre, and adopt the financial accounts for 2008-09.

"The main agenda is adoption of accounts for the previous financial year," sources close to the development said. The board is also likely to discuss route and capacity rationalisation as part of the cost-cutting proposals.However, the pilots, who have warned of a strike from November 24 if their demands are not met by November 20, seem to be in no mood to relent.

While the original strike notice given by the non-executive pilots is effective from today, the management was asked by agitating pilots, at a meeting with the Central Labour Commissioner here yesterday, to decide on their demands by November 20 to avoid the strike. The board meeting comes days ahead of a meeting of the Group of Ministers on the national carrier's financial health.