Employees across bases in Nagpur, Kolkata and New Delhi have been protesting the privatisation of AIESL.
| Photo Credit: Special Arrangement
A section of employees at the government-owned and the country’s largest aircraft maintenance company, Air India Engineering Services Limited (AIESL), started a symbolic protest on Wednesday (April 2, 2025) by wearing a black ribbon to work over issues of promotion and alleged discrimination against contractual staff.
The protest comes amidst uncertain future for the employees as the government has plans for privatising AIESL, which was among the companies hived off from erstwhile national carrier, Air India, at the time of its disinvestment.
Those on protest are from the All India Aircraft Maintenance Engineering Union (AIAMEU) — the union of AIESL employees. It represents nearly 900 staff on Fixed Term Employment (FTE).
The protest across bases in Nagpur, Kolkata and Delhi is over a change of promotion policy, and delays in implementing salary revision, according to a written representation by AIAMEU to the CEO of AIESL, Sharad Aggarwal.
“We don’t distinguish between employees. The pay is determined by the service conditions laid down in the contract at the time of the employment and we are willing to have discussions with the staff,” the CEO told The Hindu.
The official declined to comment on the disinvestment timeline of AIESL, being overseen by the Department of Investment and Public Asset Management (DIPAM), but the CEO said that there was enough demand in the country for skilled aircraft maintenance engineers in the country. The government plans to carry out roadshows in May in the country as well as in Singapore and Europe for the former subsidiaries of Air India to gauge buyer interest, which has further stoked unrest among staffers over uncertain future.
Employees are also miffed over the alleged violation of “equal work, equal pay” to ensure pay parity between FTE or contractual staff and permanent employees, but the matter is sub-judice before *the Delhi High Court since 2023. As privatisation drags on, the strength of FTE staff at AIESL has grown to 3,562 out of the total strength of 5,378.
The Ministry of Labour and Employment notified in 2018 its Rules for Fixed Term Employment under the Industrial Employment Act, 1946. According to these rules, a FTE’s hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman. They are also eligible for all statutory benefits available to permanent workman. Additionally, no employer of an industrial establishment shall convert the posts of the permanent workmen into that of FTE. Several courts have also ruled that an FTE’s post is only a stop-gap arrangement and cannot be used as a substitute for employing the person on a ‘permanent’ or ‘unlimited’ term.
The Union Cabinet in 2017 approved Air India’s privatisation, which also included its subsidiaries such as ground-handling services provider Air India Air Transport Services, Hotel Corporation of India regional airline Alliance Air, land assets and arts and artefacts of Air India. The government aimed to raise ₹3,000 crore through the sale of AIESL and other companies including the ground-handling arm. In January 2018, these companies were hived off and parked under a special purpose vehicle called Air India Assets Holding Limited (AIAHL). A fresh cabinet note was moved in 2023 for AIESL’s privatisation but the matter has since been in cold storage.
Published – April 02, 2025 09:50 pm IST