The Descent of Air India (50 page)

Would you like to comment on the above?

You had, on numerous occasions, after assuming charge and perhaps till the end of 2005 or early 2006, publicly stated that you would make Air India one of the top 5 airlines in Asia. Post 2005–06 no such statements were made. What made you lose confidence that Air India could not be transformed as one of the top 5 airlines in Asia? I am sure you would have had reasons that brought about change in your thought process.

Would you like to share the reasons for this change and specify as to when you gave up on the objective of making Air India one of the top five airlines in Asia?

A presentation was made to the Hon’ble Minister, Secretary-Civil Aviation and other senior officials of MoCA in the last week of July 2004 (at the time of JRD Tata’s centenary celebrations) to seek Government’s approval for initiating wage negotiations with the Unions. As per the presentation, it was clearly stated that the Agreements would be signed only after ensuring that no additional financial liability would be imposed on the company and that the additional amount of Rs.101 crores payable to various categories of employees would be offset by savings through enhanced productivity. The amount quoted for productivity savings in the presentation was
160.04 crores. (If you wish, I can send a copy of the presentation). Why was this commitment, on the basis of which Ministry’s approval was obtained, not honoured and why did the airline, with you at the helm, continue to sign Agreements with various Unions in disregard to our ability to absorb additional costs? From where was the management expecting a windfall to meet these additional liabilities?

Would you like to comment or state your compulsions as we are today paying a heavy price for having doled out huge sums with little or no returns by way of enhanced productivity or savings?

I will be extremely grateful if you could share your thoughts with me. I am seeking answers to these queries because I wish to put these and many other questions/issues relating to Air India in the public domain post my retirement and I would naturally like to incorporate views/comments of persons who had something to do with the issues.

(Reminder mail sent on March 1, 2010 also did not elicit any response).

APPENDIX
9

(A letter from Jitender Bhargava to V. Thulasidas, Chairman, with a copy to Praful Patel, dated 9 July 2004)

The Joint Action Committee of all Trade Unions has addressed a letter No JAC/CAM-PF/04/32 dated July 6, 2004 to the Hon’ble Minister of Civil Aviation, which has also been released to the media.

As the contents of the letter are factually incorrect and present a distorted picture, I would like to place the facts in the proper perspective.

The letter begins by describing my conduct as anti-labour and anti-union. No instances of anti-labour and anti-union policies, alleged to have been followed by me, have been spelt out.

They are perhaps referring to the following actions of mine.

My decision to roster new cabin crew on our flights, after providing them inflight service training, but awaiting flight safety training, after obtaining due approval of the DGCA for doing this.

This decision has naturally affected the earnings of the members of the Air India Cabin Crew Association. It is worth noting that because Air India was operating short of the agreed cabin crew complement, the company has been paying compensation of the order of approximately USD 700–1000 to each cabin crew per flight for operating on the India/USA/India sector, in addition to their normal earnings of USD 700 per crew for each flight on this sector.

My decision to roster inflight-service trained, but flight safety untrained crew, after ensuring that all doors are manned by safety trained crew and obtaining approval of the DGCA, has naturally enabled Air India to roster the crew close to the agreed crew complement, thereby saving the company huge sums. If helping save crore of rupees for the company is anti-labour and anti-union, I stand by my decision. Further, if this decision had been taken by the head of Inflight Service Department in company’s interest, instead of me, I would not have become the devil in the eyes of AICCA.

I have acted as a catalyst for ensuring that we induct manpower in our subsidiaries viz Air India Charters Limited (AICL)/Air India Air Transport Services Limited (AIATSL) at various airports, so that Customer Service, which has suffered immensely due to lack of adequate manpower, can be improved. Induction of additional manpower will affect some employees owing allegiance to the Air India Employees Guild (AIEG), who are earning huge amount of overtime, on many occasions even without working. The total overtime bill at Mumbai Airport alone is close to
25 crore per annum.

If my decision, intended to help improve customer service and reduce overtime payments, is viewed as anti-labour and anti-union by any Union, I reiterate that I have done no wrong.

The JAC have further alleged that there appears to be a systematic and sustained campaign to decimate all the Unions. This is in the realm of speculation, as their own letter says that “there appears to be......”

While they have stated that the Director-HRD has publicly declared his intention to finish all the Unions/Associations/Guilds of Air India, no evidence has been cited, as to when was the intention stated, to whom was it stated and where was it made.

I emphatically deny having any such intention, as I duly recognize that in any organization, there will be unions to represent the employees and management will have to deal with them, to take the company forward. I only do not allow the union leaders to dictate terms and also back seat driving. If this is anti-union and anti-labour, I find nothing wrong in it.

It is amazing that our unions still maintain that they have been “very cooperative, positive and pragmatic in their approach”.

If this is so, why has the AICCA filed a Writ Petition in the Mumbai High Court, challenging our decision to roster crew trained in inflight services, on board our flights, over and above the numbers required for flight safety, when it is intended to be in the interest of the Company and it helps save money for the company, helps improve services on board, helps restore are curtailed passenger services on our flights.

Likewise, the case of induction of Customer Agents in AIATSL, who have not been allowed to join duty by the AIEG, only because the overtime earnings of some of their members will get affected. AIEG’s precondition for allowing this first batch of Customer Agents, spelt out in the draft MOU is indicative of their thinking, notwithstanding their public posturing.

AIEG has also not allowed Loaders recruited in AICL/AIATSL to join duty in the Ground Services Department, where there is an acute shortage. This is notwithstanding the numerous meetings held for operationalising of AIATSL over the past one year with the AIEG.

In the Cargo Division, the AIEG earlier this week, has not allowed rostering of employees in three shifts, which would have helped improve Air India’s Cargo handling. Mrs H. Rana, Commercial Manager-Cargo, Mumbai Airport, has this to say “although five working days plus two offs are shown in the Loaders’ and Traffic Assistants’ roster, in actual practice conditions are created for working on the 6th, 7th, 8th and 9th day to avail of the benefit of 7 hours afternoon overtime. Further, all the above staff on overtime, finish the work by 17.00 hours, but claim overtime upto 22.00 hrs. On the next working day, they report at 09.00 hrs instead of 06.45 hrs due mandatory minimum rest of 11.00 hrs.”

The quantum of unwarranted overtime paid is around
One crore per month in the Cargo section. This specific instance is being cited, because the entire issue was not handled by me, and thus shows that union leadership attitude is the same, irrespective of who is dealing with them.

There can be several other examples that can be cited, to show that even though Unions are coming in the way of Air India’s growth plans and progress, they continue to maintain a public stance that they are “progressive, positive and very cooperative”.

The letter has further stated that “Director-HRD is going about dismembering and restructuring the company in a tearing hurry thereby violating all Public Sector norms and CVC guidelines..........”

They are perhaps referring to the creation of the subsidiary Air India Air Transport Services Limited and Air India’s decision to set up a low cost carrier, Air India Express. It is amazing that these Union Leaders, who have worked in the company for several years, believe that an individual, working as Director-HRD, can take decisions of such ramifications and significance, when there exists a Chief Executive, the Air India Board and the Ministry of Civil Aviation.

Even if this is conceded, for the sake of argument, Unions do need to explain as to which of the PSU norms and CVC guidelines have been flouted by me.

The JAC has placed the responsibility of wage revision not having taken place in the past eight years, also at my doorstep, knowing fully well that Air India cannot initiate any discussions until it has received the approval of the Ministry of Civil Aviation, which you are well aware, is pending with the Ministry.

The statement of the JAC once again fails to give any instance of efforts being made to promote inter and intra-union rivalry by using illegal, unethical and undesirable means.

I have, over a period of time, earned a reputation of a “Doer” in spite of the PSU culture, red tape, etc. A recent instance is that of our Los Angeles flights. While in November 2003, the then Director-Inflight Services Department had stated, in writing, that flights to Los Angeles can commence only in January 2005, due to non-availability of cabin crew; the Operations Department had also stated that they will not be able to provide adequate Pilots for these flights. It was my resolve and my initiative, which made me give a categorical assurance to Commercial Director, that I, as Director-HRD, would make available the required cabin crew and operating crew, to commence our Los Angeles operations on schedule in June 2004. While the cabin crew was made available through speedier induction, a new initiative for the first time in Air India’s history was taken for induction of foreign pilots, to meet the requirement, which has of course additionally helped us, in making more productive use of Pilots—through dispensation received from the DGCA—once again, with my playing a key role.

As the letter has been released to the media and the resulting news reports have harmed my reputation and public standing, I seek your approval to issue a public statement clarifying the position with respect to each of the charges made in their letter.

APPENDIX
10

(Excerpt from a letter from Jitender Bhargava to V. Thulasidas, Chairman, after his removal from the department of HR, dated 7 August 2004)

Dear Mr Thulasidas,

Your brief telephone call to me on the afternoon of August 5, 2004, to inform me that I have been relieved of the HRD charge has shaken my faith in the management. As this decision is flawed and based on distorted information furnished to you, I wish to go on record with the evidence to establish my point of view, particularly as no opportunity was given to me to explain my position before the issuance of the transfer order.