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Air India Express announces pay cuts for employees after 88% drop in revenues

The monthly stipend of trainee co-pilots will be reduced by 10 per cent. For cabin crew, the domestic layover allowance will stand reduced by 10 per cent.

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Air India

New Delhi, Aug 6 : Following a massive decline in revenues of 88 per cent up to July because of the Covid impact, Air India Express has announced a rationalisation scheme for pay cuts for employees, with pilot allowances reduced by 40 per cent.

The scheme is similar to what has been implemented by its parent company, Air India.

In a office circular dated August 5, T. Vijayakrishnan, Chief of HR, said that the company, along with other aviation companies, has been adversely impacted by the Covid-19 pandemic.

“Consequently, the airline’s revenues up to the month of July have declined as much as 88 per cent,” the circular said.

In order to meet the payment commitments to banks, aircraft lessors and other key vendors, the airline has been forced to increase its working capital borrowings. It has been taking measures to cut costs and fixed charges on the meagre earnings through renegotiation of contracts with all key vendors.

“As you all may be aware, Air India, our parent company, has also implemented a rationalisation scheme to reduce the funds outflow in terms of compensation to employees,” the circular said.

It has received directions from the Civil Aviation Ministry and parent company to implement a similar rationalisation exercise in Air India Express as its situation is no different at this point of time.

“It is therefore necessary for all of us in Air India Express to accept commensurate sacrifice in our monthly remunerations, until the adverse effect of Covid pandemic on our operations/revenues substantially wears off,” Vijayakrishnan said.

The allowances of pilots has been reduced by 40 per cent. These include flying allowances, special pay and layover allowances.

For ground employees, there will be no reduction for emoluments up to Rs 25,000, 5 per cent reduction up to the grade of Senior Officers and reduction of 7.5 per cent of gross emoluments for employees above this level, going up to CEO.

The rationalisation scheme will be effective from April 1 and will continue till further review by the board of directors.

For Commanders who fall in special contracts of 15 days on and 15 days off, their gross remuneration will be reduced by 50 per cent.

For trainee captains, the remuneration will be reduced by 40 per cent. For first officers, co-pilots, trainee co-pilots, the flying allowance will be reduced by 40 per cent.

The monthly stipend of trainee co-pilots will be reduced by 10 per cent. For cabin crew, the domestic layover allowance will stand reduced by 10 per cent.

Business

‘Corporate vultures eying small banks, merge Lakshmi Vilas Bank with govt bank’

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Chennai: The Reserve Bank of India (RBI) should take a prompt and correct action of merging the 93-year-old Lakshmi Vilas Bank (LVB) with a nationalised bank, a top leader of one of the largest bank unions said.

“There are a number of corporate vultures that are circling the small-old generation private banks for a take over. These regional banks have their own tradition and culture and taking them beyond certain borders and expanding their size will result in failure,” All India Bank Employees’ Association (AIBEA) General Secretary C.H. Venkatachalam told IANS.

It is not known who brings the suitors for the south-based, regional old-generation private banks and for what purpose.

Referring to the voting out of seven Directors of the Lakshmi Vilas Bank, and the statutory auditors by a group of shareholders at annual general meeting held on September 25, Venkatachalam said it is time for the RBI to act quickly in the interests of depositors.

“The RBI should take necessary steps to merge the LVB with a public sector bank to protect the depositors, rather than looking out for suitors who may not be suited for the bank’s culture,” he said.

According to Venkatachalam, banks like the LVB, Karur Vysya Bank (KVB), Tamilnad Mercantile Bank (TMB), Karnataka Bank and others are largely regional banks steeped in their own tradition.

“Expanding them into unknown territories would result in trouble for them,” he said.

Citing the case of Kerala-based small-sized Dhanlaxmi Bank, Venkatachalam recalled that around 2008-2012, it made a loss of over Rs 850 crore as the top management brought it to serious problems in the name of modernising it.

He said with the intervention of the RBI, a change in top management, and strengthening its capital base, etc. and inducting some reputed people on the bank’s Board, Dhanlaxmi Bank turned around and earned profit.

As a part of turnaround, the bank closed down many of its branches in north Indian states, where inadequate controls landed it in problems, he said.

Venkatachalam said for the past two years, the Dhanlaxmi Bank is making profits with the profit for last fiscal being Rs 65 crore – the highest since the bank’s inception.

He pointed out the Kumbakonam-based City Union Bank, which is operating steadily, as an example of a well-run, small-sized old generation bank which was started in 1904.

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India

Agri laws are death sentence for farmers: Rahul Gandhi

The Congress party is also protesting against the farm laws across the country.

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Rahul Gandhi

New Delhi, Sep 28 : Congress leader Rahul Gandhi on Monday alleged that the agriculture-related laws are a “death sentence” for farmers whose voice has been crushed both inside and outside Parliament.

“The agriculture laws are a death sentence to our farmers. Their voice is crushed in Parliament and outside. Here is proof that democracy in India is dead,” he said on Twitter.

Gandhi tagged a news report along with his tweet that claimed that Opposition members demanding a division of votes were on their seats when the farm bills were passed in the Rajya Sabha, while the government said they were not.

Gandhi and his Congress party have been demanding that the farm legislations be withdrawn as they are not beneficial for farmers, who will be enslaved at the hands of private players and big businesses.

The Congress party is also protesting against the farm laws across the country.

The government has, however, asserted that the new laws will free farmers from the clutches of middleman and allow them to sell their produce anywhere they want at a remunerative price.

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India

Congress protests against farm laws in Goa, demands rollback

“If this is not a new ‘zamindari system’, what else is? Through this specious mode of contract farming, farmers will be left at the mercy of big companies, courts and bureaucracy in the event of any dispute.

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Goa Congress Farm Protest

Panaji, Sep 28 : The Congress in Goa on Monday staged a protest at the Raj Bhavan here to protest against the three new agricultural laws and demanded their rollback.

In a memorandum submitted at the Raj Bhavan, Goa Congress leaders leading more than 1,000 protestors claimed the new legislations were “anti-farmer but corporate-friendly”.

Parliament passed the three Bills in its Monsoon Session. President Ram Nath Kovind gave his assent on September 24 whereas the central government published it its gazette on Sunday.

“The biggest flaw in the contract farming law is that Minimum Support Price (MSP) is not mandatory. Once the mandi system is abolished, farmers will be solely dependent on contract farming and big companies will decide the price of farmer’s crops on their own,” claimed the memorandum signed by top Congress functionaries and addressed to the President of India.

“If this is not a new ‘zamindari system’, what else is? Through this specious mode of contract farming, farmers will be left at the mercy of big companies, courts and bureaucracy in the event of any dispute.

“In such a scenario, powerful big companies will naturally exercise their influence on bureaucracy and attack the very livelihood of farmers by engaging them in the legal intricacies and earn profits,” the memorandum said.

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