Indian carrier Vistara on Monday announced voluntary retirement scheme (VRS) and voluntary separation scheme (VSS) for its permanent ground staff ahead of its merger with Air India, which had announced similar plans for its non-flying permanent staff two weeks ago.
In a message sent to its employees, Vistara stated that all permanent ground staff, who had worked with the airline for five continuous years, can take part in the VRS scheme.
It also said that VSS will be for permanent ground staff who have less than five years of experience.
Those who volunteer for this scheme would be provided “gratuity”, “provident fund” and “encashment of leave” as per the existing company policy and government rules.
The ex-gratia amount would also be calculated and provided by government-authorised “patterns”, the airline stated.
However, the airline clarified that pilots and cabin crew members, any licenced role holders, and employees retiring by March 31 next year were not eligible for the scheme.
Business Standard has reviewed the message.
Vistara did not respond to the newspaper's request for a comment on the matter.
Air India had on July 17 announced a VRS for permanent ground staff holding more than five years of experience, and a VSS for those who had less than five years of service.
Vistara, a 51:49 joint venture of the Tata Group and Singapore Airlines, is scheduled to merge into Air India by the end of this year.
While the deadline for Air India's schemes is August 16, it is August 23 for Vistara's schemes.
Sources stated that approximately 500-600 employees, out of a total of 25,000 from the two carriers, are expected to be retired or separated.
The carriers are making efforts to retain as many employees as possible, with some being absorbed into other Tata Group companies. However, certain positions have become redundant due to the merger, they added.
The ground staff referred to in messages sent by Air India include all non-flying staff of the airlines, including employees working at the airlines' headquarters.
Generally, ground staff includes those who handle various tasks on the ground, including customer service, baggage handling, security checks, ramp service, and cargo operations.
They assist passengers, manage luggage, perform security screenings, and coordinate with flight crews and other airport personnel.
Vistara, which currently has about 6,500 employees on its rolls, is being merged into Air India to create a single full-service carrier.
Concurrently, Air India's subsidiaries, AIX Connect and Air India Express, are merging to form a unified low-cost airline.
Earlier this month, Air India had announced the completion of harmonising operating procedures across key functions for the four Tata Group airlines, including the alignment of supporting manuals.
This was a crucial step in the ongoing merger process.
