Wednesday, November 11, 2009

Cash Based Incentives come Crashing Down!

http://epaper.timesofindia.com/Dbased inefault/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2009/11/12&PageLabel=17&EntityId=Ar01700&ViewMode=HTML&GZ=T

The speculation has come true, as Air India does away with Performance based incentives. Trying to curb its operating cost and cutting back on losses, Air India is removing a number of taken for granted privileges that were tied to posts. At a point of time working with Air India the national carrier of India meant stability and assurance of increments, however the shift now due to losses have left most employees with a feeling of constant anxiety.

The performance-linked incentive accounts for 60% to 80% of the total package, given to employees. Scraping this would mean a heavy decrease in the salary for the work force. 

Turbulence in the air!  

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