Air India offers to compensate staff facing eviction from housing colonies

Unions move Bombay HC to challenge the proposed ejection from colonies in Mumbai

Air India has offered to compensate employees affected by the government's decision to evict employees from staff colonies in Delhi and Mumbai.

Employee unions have moved the Bombay High Court to challenge the proposed eviction of personnel from staff colonies in Mumbai.

The unions argue that the airline’s letter asking employees to vacate office accommodation by July 26 amounts to a change in service terms. This, they said, is a violation of the Industrial Disputes Act.

The company has offered reimbursement of expenses such as movement of household goods within 100 kilometers, brokerage for rent of up to one month with a maximum limit of Rs 30,000, expenses incurred towards admission of the affected staff’s children in school of up to Rs 50,000 per child and reimbursements of hotel of stay of two nights by the family who is vacating the staff accommodation up to Rs 5,000.

However, the compensation offer has found little support from employees who will be affected by the eviction.

“It is completely irresponsible and illegal on part of management to issue such a letter when the matter is being heard in court. The management is using all kinds of pressure tactics to force people to leave the colony,” said George Abraham of the Aviation Industry Employees Guild.

The government had asked employees of Air India, the former state carrier now owned by Tata Sons, to vacate the company-provided accommodations by July 26.

The government's eviction notice had also warned that failure to vacate the accommodation will result in loss of retirement or service benefits and any other financial benefits. “Further, you shall also be liable for action under the Public Premises (Eviction of Unauthorised Occupants) Act 1971 and shall also be liable for strict disciplinary action as per the service regulation,” it says.

Air India has two major housing colonies: at Vasant Vihar in Delhi and at Kalina in Mumbai. Almost 1,800 employees reside in the two places.

Air India's real estate, including the housing colonies, were not part of the privatisation process and were transferred to a Special Purpose Vehicle--Air India Asset Holdings Limited (AIAHL). AIAHL plans to sell the properties to pay the debt it took over from Air India’s books in order to make the sale attractive.

Air India had a total debt of Rs 61,562 crore as of August 31, 2021. Of this, the Tata Group took over Rs 15,300 crore and the remaining 75 per cent, or about Rs 46,000, was transferred to AIAHL.

In October 2021, prior to the completion of Air India’s privatisation process, the airline had sought an undertaking from 1,600 employees residing in the Kalina and Vasant Vihar quarters that they would vacate the premises within six months of Air India's sale to the Tatas.