Financial Daily from THE HINDU group of publications
Friday, May 24, 2002

Port Info

Group Sites

Industry & Economy - Trade & Labour Unions

HMS opposes Somasundara Mills' VRS package

G. Gurumurthy


THE Hind Mazdoor Sabha-affiliated Coimbatore District Textile Workers' Union (CDTWU) has opposed the changes introduced in the voluntary retirement scheme (VRS) for the workers of the Somasundara Mills owned by the NTC's Tamil Nadu subsidiary.

Even as the NTC subsidiary has extended the deadline for VRS to May 31 from the originally fixed time limit of May 16, the HMS' trade union affiliate has dashed off a letter to the NTC's holding company in Delhi saying that the modified VRS announced by the Somasundara Mills' management effecting changes in the mode of calculating the ex-gratia payment to the VRS optees was `patently' wrong and against the established law.

It has also called upon the NTC authorities to restore the original VRS scheme as introduced earlier.

CDTWU said that it had been a well established practice that for the purpose of calculating ex-gratia payment under the VRS, the number of days in a month taken to arrive at the wages earned by a worker is reckoned as 26 days and not as 30 days because the four weekly holidays when the worker would not be expected to attend to work were to be allowed.

The monthly wages paid to him had, therefore, to be for 26 days work and the daily wage to be calculated could be arrived at by dividing the monthly wage by 26 days and not 30 days.

The modified VRS package announced by the NTC management to the Somasundara Mills' workers has sought to calculate the number of days as 30 for the payment of ex-gratia.

The union further claimed that most of the private textile mills in the region adopted the 26-day month for calculating the daily wage/salary of the mill worker and the same formula was being adopted by the industrial tribunals, wage boards etc.

Whenever wage deductions for a worker on account of determining loss of pay is to be effected, the daily wage is arrived at by taking the number of days in a month as 26 days.

In fact, the NTC Tamil Nadu subsidiary, which introduced VRS in other units owned by it some time ago, had worked out the VRS compensation on the basis of 26-day month only, it said.

Send this article to Friends by E-Mail

Stories in this Section
Steady growth in consumer durables output: Survey

$6-b ADB aid for India in next 3 years
Beware of pollution from hi-tech gadgets
TN: Waste management awareness drive
Luxembourg keen to boost investments: Envoy
Kyrghyzstan seeks packaging knowhow
Afghan Minister scouting for investments
More Canadian aid for TB control plan
HPCL to set up four auto LPG stations
Grid failure hits western Maharashtra
Karnataka: Depts to settle KPTCL dues
AP ferro alloys industry makes fresh plea to Govt
TN: FIR against textile mills for returns default
Tyre exports of ATMA member cos rise 6.03 pc
April car sales pegged at 33,256
Karnataka Govt firm on jewellery park
TN: Joint panel of industrial unions formed
Tirupur knitwear units form SPV for water project
Bid for HPCL, BPCL -- Iffco-Kribhco combine ropes in Oman Oil
No discount in Nalco equity sale
Bids for Madhunagar unit
AP CM stresses district-level planning
HMS opposes Somasundara Mills' VRS package
RTA negotiations: Inputs sought from industry
Bangalore Engagements
Home Trade resorted to `window-dressing'
CBI clamps down on another Customs official

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line