The stand-off between Air India and Indian Commercial Pilots Association, which represent the domestic pilots of erstwhile Indian Airlines, was resolved in Mumbai on Sunday with the management agreeing to payment as per 5th day commission.
Earlier they were being paid as per the 4th day commission. Various arrears due to them from 2006 would also be cleared in instalments from January 2010, said sources.
The two parties agreed further that no unilateral decision on cut in Productivity Linked Incentive would be taken. ICPA sources added that some suspended pilots would be reinstated.
"We have amicably resolved the issue and reached to consensus. The strike has been called off," said ICPA president Shailendra Singh. Air India spokesperson confirmed it.
The ICPA protesting against irregular payments of PLI, which makes up for 80 per cent of a pilot's salary, had threatened with strike from November 24. It was later shifted to November 30.
The executive pilots' union, which had gone on strike in September too threatened to join the stir.
According to sources, the pilots were not paid their incentives for September and October. This, coupled with Air India's decision of 50 per cent cut in PLI, led to a disagreement between the pilots and the management.
In September, the executive pilots of Air India, about 350 in number, had gone on a five-day sick leave after the Air India management had announced up to 50 per cent cut in salary of its top 7,000 executives. The airline suffered a loss of almost Rs 60 crore at that time.
Air India has an annual wage bill of Rs 3,100 crore (Rs 31 billion), of which 40 per cent is PLI.
