As India’s MRO sector prepares for a critical phase of expansion and privatization, its largest state-owned player, AI Engineering Services Limited (AIESL), is facing fresh labor unrest that threatens to ground progress.
Over 1,100 aircraft maintenance technicians, all employed under fixed term employment (FTE) contracts, are poised to begin an indefinite strike from May 5. The move, spearheaded by the All-India Aircraft Maintenance Engineering Union (AIAMEU), underscores long-standing tensions over job security, wage parity and employment rights.
But this time, AIESL’s leadership is pushing back with a firm response.
In an exclusive statement given to Aviation Week Network, AIESL CEO Sharad Agarwal reaffirmed the company’s commitment to its workforce and emphasized that its management has proactively addressed employee concerns through structured agreements.
“We have already signed agreements with the union, co-signed by the office of labor commissioner, covering issues like salary, promotions and employment conditions,” said Agarwal. “These were formalized in April 2024 and are valid for four years. There has been continuous dialogue, and salary revisions for FTEs have already been implemented
He stressed that AIESL operates with transparency and inclusivity. “No arbitrary decisions are made. For all key policies, we take our employees on board. There’s a redressal mechanism, and our quality and safety policy encourage open reporting,” Agarwal added.
Despite management’s assurances, the union remains unconvinced. In a formal strike notice dated April 16, the AIAMEU accused AIESL of ignoring essential statutory entitlements under the Industrial Employment (Standing Orders) Central Rules, 1946, and failing to regularize qualified contract employees into permanent roles.
The AIAMEU’s demands include parity in pay and benefits with permanent staff, pathways to regularization and recognition of long-serving FTEs.
Union members have already staged symbolic protests by wearing black ribbons at work. They argue that despite their critical contributions in maintaining airworthiness and safety of key airline fleets, including Air India and Alliance Air, they remain structurally excluded from core employment benefits.
This is not the first time AIESL has faced such turbulence. In April 2024, the union had similarly threatened a strike over wages and service conditions. The strike was called off after management agreed to salary reviews. In May 2024, even permanent engineers were considering industrial action over delayed pay restructuring that was later defused after government intervention.
The recurring nature of these disputes suggests systemic issues within the company’s employment structure, particularly around how contractual employees are integrated into a workforce tasked with ensuring safety-critical functions.
The stakes are now higher than ever. AIESL operates six major MRO facilities across India and is currently on the government’s strategic disinvestment radar. With the Department of Investment and Public Asset Management expected to issue Expressions of Interest as early as next week, repeated labor unrest could cast a long shadow over the company’s valuation and investor sentiment.
Agarwal, for his part, remains optimistic: “We are always open to constructive discussions. Our commitment to our employees and the broader aviation community is unwavering. We will ensure uninterrupted operations and continue striving for excellence.”
In the broader context, the unfolding situation serves as a litmus test for how India’s aviation infrastructure will balance labor rights with global competitiveness and whether its MRO ambitions can truly take flight.
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