• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

G.K. Nair

The management has unveiled two VRS packages on December 24 under which workers are required to choose one depending on the benefits and offer their consent by January 10

Kochi , Dec. 30

THE voluntary retirement scheme (VRS) offered by the management of the ailing central public sector, Fertilisers and Chemicals Travancore Ltd (FACT) does not seem to have enthused the workers as the trade unions termed it as unattractive.

"There is no enthusiasm among the workers because of the non-attractive nature of the benefits of the offer," Mr K. Chandran Pillai, MP and CITU leader, told Business Line. The management needs to dilute its position as far as the VRS scheme is concerned. It had fixed a ceiling of Rs 5 lakh towards compensation to be paid to those volunteer for retirement and "this position is not appreciable," he pointed out.

The management has come out with two VRS packages for its employees on December 24 under which workers are required to choose one depending on the benefits and offer their consent by January 10. The schemes are modelled on the Gujarat and the Department of Heavy Industry VRS.

Under the first pattern, 35 days salary (basic + DA) for every completed year of service and 25 days salary per year for balance of service left till superannuation at 58 years of age would be paid.

Under the second, 45 days emoluments for each year of service completed or the monthly emoluments at the time of VRS multiplied by the balance number of months of service remaining which ever is less, would be the entitlement.

In any case, it would be limited to Rs 5 lakh or the amount calculated whichever is less. In addition, they would be entitled to PF and gratuity, but no leave encashment would be available.

As on November 30, 2003, the company has a total strength of 5,384 employees with 3,521 workers and 1,863 officers. The average age of employees is 46 years. There are 282 above 50 years of age. In fact, 4,864 employees are of 45 years and above and of this 2,046 are of 45 years of age.

A substantial number of workers are directly employed by the company in sectors which could be outsourced such as canteens, loading and unloading, maintenance, schools and hospitals, financial services and routine maintenance.

A senior management source, said: "Outsourcing is easily possible with better services at lower cost." The management is optimistic that a good number would opt for the VRS. FACT had decided to go for the VRS to reduce employee strength to 3,000 from the present 5,384. "If the strength is reduced by 1,000 that would reduce the revenue expenditure by Rs 25 crore. The current annual wage bill of the company, which had posted a net loss of Rs 199.93 crore stood at Rs 148 crore, he said.

The Centre had provided Rs 60 crore as loan at 14 per cent interest for the VRS.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Bengal, IOC to chart investment roadmap

Copyright © 2003, 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