Air India employees will boycott their work if they are not paid in time

The issue of foregoing salary created a major crisis for Air India, the national flag carrier airline of India. The state run airline is the 16^th largest airline in Asia and employs thousands of people. On June 13, 2009, National Aviation Company of India Ltd (NACIL) issued a circular saying that it would defer the June salary and productivity linked incentives to all its employees till July 15. After the circular came out, the employees declared to go on strike if their pay is delayed. The Times of India reports:

Earlier, about 24,000 employees has threatened to go on an agitation later this month if their salaries are delayed by a fortnight as decided by the management.

"Members of Air Corporation Employees Union (ACEU), Aviation Industry Employee's Guild (AIEG) and Indian Aircraft Technicians Association (IATA) will jointly boycott their work on June 30 by adopting 'no pay, no work' policy if the management fails to give us our salary on June 30," ACEU General secretary J B Kadian had said.

However, it is not only the employees who are told to forgo their June salary. On June 19, 2009, CMD of Air India also asked its top directors and senior management to forgo their July salary as the company is experiencing a “resource crunch.” In the last fiscal year, Air India’s losses were estimated at around Rs.40 billion against 22.26 billion in previous fiscal year. However, top Air India officials denied this estimate.