One of the fastest growing Aviation industries in the world is Indian Aviation Industry. India’s Aviation industry is growing at between 15% and 20% a year. The Indian aviation market is the one of the largest globally, and could become the third-largest within few years based on current growth predictions.

In 1990s, aviation industry in India saw some important changes. The Air Corporations Act was abolished to end the monopoly of the public sector and private airlines were reintroduced. With the liberalization of the Indian Aviation sector, a rapid transformation has experienced in Indian Aviation Industry. Primarily it was a government owned industry, but now it is dominated by privately owned full service airlines and low cost carriers. Around 75% share of the domestic aviation market is shared by private airlines.

Aviation Industry is greatly affected by disinvestments, privatization, restructuring and takeovers which, in turn, affect the Industrial relations scenario of the country. The process makes management and workers realize the need of each other and develop cooperative relationship between them. Downsizing, the use of contract labour, outsourcing and employment externalization are some of the phenomena that have crept in due to these changes.These changes are forcing firms to reinvest themselves and re-engineer their process with new, atypical and non-standard work and employment practices. The new approaches are feared to create jobless growth where labour could become a redundant resource and trade unions less relevant.

Being held at a time when the business scenario is proving to be a challenge for both employees and employers as businesses come under increasing pressure to keep stakeholders satisfied.These changes have implications both for the organization and the employees. As a consequence the nature of relationship between the employees and the employer is impacted.

The need for having a Federation of Trade Unions became more imperative to accomplish the following as its specific Aims:

  • To analyze and support the Industrial Relations in Aviation Industry in India.
  • To be a strong bridge between the Employees, Trade Unions, Airlines, Ground Handlers & Government.
  • To interpret and intervene in the causes of Industrial Disputes in Aviation Industry in India.
  • To provide insights in to strategic management to promote industrial relations in Aviation Industry in India.

The government had also acknowledged that Aviation Industries precarious financial situation had led to delays in resolving HR issues in the airline. Some part of the delay in harmonizing is due to the critical financial condition being faced by the company has also contentious issues like

Level-mapping, compensation harmonization etc. for all employees”

Federation Objectives:

The following objectives would be initiated to achieve harmonious Employer-Employee Relations in the Aviation Industries:

Sound Personnel Policies:

The policies should be framed in consultation with the employees and their representatives if they are to be executed successfully and unambiguously so that there is no confusion in the mind of anybody. Implementation of the policies should be uniform throughout the industry to ensure unbiased treatment to each and every employee.

Strong and Stable Unions:

Strong and stable unions are essential in Aviation Industry for harmonious Employer-Employee relations. The employers can easily neglect a weak union on the pretext that it hardly represents the workers. Therefore, there must be strong and stable unions in Aviation to represent the majority of workers and collaborate with the management about the terms and conditions of employment.

Mutual Trust:

Both management and labor should support in the development of an Environment of mutual cooperation, self-reliance and admiration. Management should adopt An Impartial Attitude and should acknowledge the rights of employees. Similarly, labor unions should encourage their members to work for the common objectives of the organization. Both the management and the unions should have reliance on collective bargaining and other proactive methods of settling disputes.

Workers’ Participation in Management:

The participation of workers in the management of the company should be encouraged by making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation:

The employers must be familiar with the right of collective bargaining of the trade unions. In any organization, there must be an immense stress on mutual accommodation rather than conflict or rigid attitude. One must clearly understand that conflicting attitude does not lead to harmonious Employer-Employee relations; it may promote union aggressiveness as the union responded by engaging in pressure tactics. The management should be eager to cooperate rather than threaten the employees.

Government’s Role:

The Government should play an effective role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each organisation. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will reinstate industrial harmony.

Progressive Outlook:

There should be progressive outlook of the management. It should be aware of its duties and responsibilities to the employees, the passengers and the nation.

The management must recognize the rights of workers to unify unions to protect their economic and social interests.