Air India Disinvestment: Madras High Court Grants Interim Relief To Employees' Union For Retention Of Accommodation, Medical Facilities

An employee's Union has moved the Madras High Court seeking to restrain the Central Government from proceeding further with the process of disinvestment of Air India, until steps are taken to protect the rights of the national carrier's staff. Justice V Parthiban on Friday, granted interim relief and restrained the Civil Aviation Ministry from evicting the members of the Petitioner Union, namely Air Corporation Employees Union, from their current accommodation provided by Air India. The Bench further restrained the authorities from discontinuing the medical benefits and facilities presently extended to the members and their families under the Contributory Family Medical Scheme."There shall be an order of interim injunction in W.M.P.Nos.26989 & 26990 of 2021," the order stated.The Bench also asked ASG Sankaranarayanan to file a counter-affidavit on behalf of the Union of India, Air India Limited and Talace Private Limited.BackgroundThe petitioner union claims that it is the largest trade union of Air India Limited with a membership of over 5,000 employees including cabin crew, aircraft equipment operators, drivers, instructors, supervisors, assistants, peons, helpers, safaiwalas and security staff. It states that the terms of share purchase agreement between the Government of India and Talace Private Limited was signed without any prior consultation and has not been disclosed to them, which violates the employees' right to know under Article 19(1)(a).The petition seeks appropriate measures to protect the terms and conditions of service and the rights of the employees of Air India represented by the Union, post disinvestment. Further, a writ of mandamus is sought forbearing 100% disinvestment and transfer of Government's stake in the national carrier, until the uncertainties regarding wage revision due from 2007, leave encashment terms, and job security etc. post disinvestment is taken care of after due consultation with the employees. The petitioner Union claims that when the disinvestment of Air India was notified, various recognised trade unions met with the Minister of Civil Aviation to express their reservations, and as a result, a committee was constituted to submit recommendations for the benefit of employees for a smooth transition. The recommendations made by the bilateral Committee consisting of three General Managers and the representatives of six unions/associations and the improvised subsequent demands of the petitioner Union are as follows: Revision of pay scale as per the 3rd PRC (Pay Revision Committee for PSEs) recommendations of 2007 effective from 2017.Job Security till the age of superannuation, i.e., till 58 years of age against the assurance that the employees will be retained for a period of one-year post disinvestment. The draft purchase agreement clause that post one year, employees' retention will be the discretion of buyer is against the service regulations and standing orders, contends the petitioner Union.Expeditious framing of Voluntary Retirement Scheme(VRS) in case of disinvestment, that aligns with the guidelines laid down by the Department of Public Enterprises (DPEs). The petitioner Union also contends that the DPE guidelines mandate that VRS must be framed prior to the handing over of a Public Sector Enterprise to new employer, citing the case of BALCO enterprises.The petitioner Union submits that employees are entitled to gather up to 300 days of privilege leave and 120 days of sick leave and claim leave encashment at the time of their superannuation. The Committee as well as the petitioner union submits that there must be a provision for leave encashment due before disinvestment as well as the transfer of accumulated leaves to the new employer for licensed cadre employeesAnother demand placed by the trade union is that gratuity must be paid to all employees before disinvestment. With regards to provident fund, total fund available in an individual employee account with the Trust should be transferred to the EPFO. In line with the Committee recommendations, the petitioner union also pressed for the continuation of the existing medical scheme-Contributory Family Medical Scheme (CFMS), and not the proposed Central Government Health Scheme (CGHS). The same was put forward on the grounds that CGHS is a contributory scheme and deductions will be made from the wages of the already lower wages of employees covered by the scheme every month. Since CGHS is a contribution dependent scheme, the employees apprehend that they won't get treatment in good private hospitals, adds the plea. With respect to colony accommodation, the Union submits that the housing allowance currently given by the Company is not sufficient to get decent housing in any of the Indian cities. Hence they sought colony accommodation till the age of superannuation against the sudden notice for leaving the premises within six months in the...

Air India Disinvestment: Madras High Court Grants Interim Relief To Employees' Union For Retention Of Accommodation, Medical Facilities

Sebin James

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