In a joint letter issued on Thursday, the Indian Pilots’ Guild (IPG) and Indian Commercial Pilots’ Association (ICPA) withdrew their stand. They told their members they could sign new wage contracts offered by Air India’s new Tata group management.

The announcement followed a joint meeting on Thursday where it was made clear to the union members that they could freely sign the new salary contract. As loyal Air Indians, “we believe it is crucial to express our readiness to settle the dispute at hand and find an amicable resolution for the benefit of both parties,” according to the statement.

The proposed compensation system for the carrier, which was unveiled on April 17, was rejected by the two unions. The airline operated by the Tata Group unveiled a new pay structure for pilots and cabin workers last month, but the changes were unpopular with the staff. Their biggest complaint was that captains with more than four years of managerial experience weren’t getting promoted.

The management of Air India stated that they disclosed the change of their employment contracts and revised compensation for flying staff in correspondence to all employees, including pilots and crew members, in April of this year. According to the airline, the contract sent is a compendium of all applicable policies and existing regulations.

To make the pay structure more competitive and market-focused, Air India management made several reforms. The rates for flying allowances were raised, and there was new pay for command upgrading and conversion training that wasn’t previously available. Management has also instituted a service prize to acknowledge the contribution of seasoned employees. Air India established best-in-class employee insurance and additional advantages that were not available to enhance the welfare of flying employees.

The new service terms were first opposed by the IPG and ICPA, who labelled them as anti-labour, unilateral, and draconian. “Over the past year, the management has not cooperated in any way, which has made it difficult for us to come to a settlement. The statement read: “Their refusal to address our concerns and complacency has led to a protracted deadlock and rising tensions.

However, following a virtual town hall meeting between pilots and the airline’s chief of operations, R S Sandhu, last week, in which the latter made it clear that all demands would be taken into consideration, the two unions’ most recent decision to accept the revised service standards and new compensation structure offered by the airline.