Source – hindustantimes.com
In a significant move preceding its merger with Air India, Vistara has introduced Voluntary Retirement Scheme (VRS) and Voluntary Separation Scheme (VSS) for its permanent ground staff. This announcement aligns with Air India’s similar initiatives announced two weeks prior for its non-flying permanent staff.
Details of VRS and VSS
Vistara’s message to employees detailed that all permanent ground staff with five or more continuous years of service are eligible for the VRS scheme. Conversely, the VSS scheme targets permanent ground staff with less than five years of service. Volunteers for these schemes will receive benefits such as “gratuity,” “provident fund,” and “encashment of leave” in accordance with existing company policies and government regulations. Additionally, an ex-gratia amount will be calculated and provided as per government-authorized patterns.
However, the airline clarified that these schemes do not apply to pilots, cabin crew members, any licensed role holders, and employees retiring by March 31 next year. Despite multiple attempts, Vistara did not comment on the matter when approached by Business Standard.
Comparison with Air India’s Initiatives
Air India, on July 17, introduced its own VRS and VSS for permanent ground staff. The VRS targeted those with more than five years of experience, while the VSS catered to those with less than five years. The deadlines for Air India’s schemes are set for August 16, while Vistara’s schemes have a deadline of August 23.
Impact on Employees and Merger Process
Sources suggest that around 500-600 employees, out of a total workforce of 25,000 from both carriers, are expected to retire or separate. Efforts are being made to retain as many employees as possible, with some being absorbed into other Tata Group companies. However, due to the merger, certain positions have become redundant.
Ground staff, as referenced in the messages from both airlines, include all non-flying staff such as customer service, baggage handling, security checks, ramp service, and cargo operations. These employees assist passengers, manage luggage, perform security screenings, and coordinate with flight crews and other airport personnel.
Merger and Operational Harmonization
Vistara, a joint venture between Tata Group and Singapore Airlines, is set to merge into Air India by the end of the year, forming a single full-service carrier. Concurrently, Air India’s subsidiaries, AIX Connect and Air India Express, are merging to establish a unified low-cost airline.
Earlier this month, Air India announced the completion of harmonizing operating procedures across key functions for the four Tata Group airlines, including aligning supporting manuals. This alignment marks a crucial step in the ongoing merger process.
Conclusion
As Vistara and Air India proceed with their merger, the introduction of VRS and VSS schemes highlights the airlines’ efforts to streamline operations and manage workforce redundancies. These schemes aim to balance the retention of essential staff while providing fair separation packages for those who volunteer to leave, thus facilitating a smoother transition into the merged entity.
