Asia Bizz: In a major relief for Air India, the employees of the Indian airline have called back the strike threat that was supposed to begin on April 2, 2012. On March 30, 2012, more than 28,000 employees of the airlines called off the strike after the airline promised to clear all their salaries and other dues by the month of June 2012.

Rohit Nandan, the CMD of Air India said that they have received their strike notice today and that the airlines has given a payment schedule under which they will be clearing all overdue payments by the month of June 2012, due to which the strike has been called off. Eight major unions of the airline had given the notice for ‘No Pay No Work’ agitation, which was represented by pilots, engineers, cabin crew and others to protest the delay in the payment of their salaries along with their productivity incentives and other allowances.

The airline assured that all due payments will be paid over three months. On March 29, 2012, the Management and union leaders held a day long meeting which failed to come out with a conclusion, but both the sides had decided to meet today. Earlier, the unions had demanded the intervention of the Prime Minister in the matter, but as it failed the union decided to go on strike from April 2, 2012.

A few weeks ago, the management had promised a staggered payment schedule so as to clear the dues in the upcoming months as the management expected that Air India would get funds through the equity infusion of Rs 4,000 crore announced in the recent budget. But the unions seemed to be unsatisfied and decided to proceed with the strike, saying that they did not receive any firm assurance on their dues.

At present Air India is facing a Rs 67,000 crore debt and has reported a loss of Rs 6,900 crores.