Vistara follows Air India's lead, introduces VRS for ground staff
Indian airline Vistara has followed Air India's lead by announcing a voluntary retirement scheme (VRS), and a voluntary separation scheme (VSS) for its permanent ground staff. This decision comes ahead of the firm's impending merger with Air India, which had announced similar plans for its non-flying permanent staff two weeks ago. The VRS is open to all ground staff who have been with the airline for five continuous years (less than five years in case of VSS).
Details of Vistara's schemes
Vistara has clarified that employees who opt for these voluntary schemes will receive "gratuity," "provident fund" and "encashment of leave" in accordance with the existing company policy and government regulations. The ex-gratia amount will be calculated using government-authorized "patterns." However, pilots, cabin crew members, licensed role holders, and other employees retiring by March 31 next year, are not eligible for these schemes.
Vistara's merger with Air India to complete by year-end
Vistara, a joint venture between the Tata Group and Singapore Airlines, is set to merge with Air India by the end of this year. The deadline for employees to apply for Vistara's voluntary schemes is August 23, while for Air India it is August 16. The merger has resulted in certain positions becoming redundant, leading to these voluntary retirement and separation schemes.
Impact of voluntary schemes
Around 500-600 employees out of a total of 25,000 from both Vistara and Air India, are expected to retire or separate under these voluntary schemes. The firms aim to retain as many workers as possible, with some being absorbed into other Tata Group companies. The term 'ground staff' refers to all non-flying staff, including those working at the airlines' headquarters who handle tasks like customer service, baggage handling, security checks, ramp service, and cargo operations.
