Move afoot to raise retirement age to 60 yrs (from 58 yrs)

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If some credible sources are to be believed the Air India Board of Directors may move on October 29 a resolution for raising the current retirement age from 58 yrs to 60 yrs, even though it’s not sure whether the Ministry will accept it. The Board’s apprehension about the Ministry’s stand stems from a number of rules and regulations. Prominent among these rules and regulations are the guidelines of Department of Public Enterprises (DPE) which says that a Central Public Enterprises (CPE) would be eligible for raised retirement bars when it fulfils certain criterion:

  • The company should have earned profits in three consecutive years;
  • The company should not have taken any budgetary support in last three years; and
  • The company should have financial health to run itself without any budgetary support for next three years

Air India does not fulfil any of the above criteria.

However, there is a catch. Since the government has placed much faith in the ability of CMD Ashwani Lohani (IRSME:1980) for turning around the sick public sector airline, it may not block his HR initiative that is aimed more at motivating the staff than giving them any pecuniary benefits.

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