The Air India-Indian amalgamation, blustered as the major conjoining in the Indian skies. It may bring a windfall to more than 32,000 workforces of both the companies. Post-merger, the administration is planning to give out employee stock options (Esops) to their employees.
A government official stated that the newly engaged company is named as ‘National Aviation Company,’ which owns up 7.32 crore shares, and a paid-up capital of Rs 73.25 crore.
The total number of shares has been attained after arrogating an exchange proportion of 8:1 that entails eight shares of the blending groups equivalent one share of the new entity.
For fear of jobs loss and positions, several employees of the national airways have been opposing the joining. Whereas the civil aviation bureau has guaranteed that workers/employees places and jobs shall be secure after the unification. But, the battle has not been completely engulfed.
A senior representative said the ‘Esop’ plan might relieve their fears.
In addition to Esops, the administration is also working at wage equality amongst the personnel. Presently, Air India has over 15, 150 people, while Indian appoints more than 17,625.
The civil aviation department also plans to establish a three-level ‘grievance redressal machinery’ (GRM) to make sure fluent incorporation of workforce of the two public sector aircraft carriers.
However, it is yet unsolved who will get advantage of the planned stock options.
“Though the proposal of Esops is under consideration, the government is yet to decide who should be granted Esops,” a civil aviation ministry official alleged.
Although all employees are expected to obtain Esops, the authorities may take on a management stock plan in which workers up to a certain managerial level would receive stock options.
National Aviation Company gets registered under Section 391 to 394 of the Companies Act, 1956. It possess a total of 7.32 crore shares.
Prior to the amalgamation, the paid-up share capital of Indian was Rs 432.14 crore and that of Air India Rs 153.84 crore.