Voltas VRS
07 May 1999
Voltas Ltd, which is in the midst of a major restructuring, is implementing a voluntary retirement scheme for its general employees that will cost the company an estimated Rs 24 crore in the first phase, out of an overall Rs 30 crore that has been budgeted for workforce reduction.
The first phase should see 600 employees taking premature retirement, the management hopes. The company wants to give a golden handshake to 1,700 of its workforce of 8,000 that includes 2,000 in the managerial and supervisory categories. Details of the scheme:
- Eligibility: minimum 40 years of age or 10 years of permanent service
- Three options: one, 54 days' salary (as on 1 April 1999) for every completed year of service; two, salary for the remaining period of service until superannuation date; and, three, lump sum up to a maximum of Rs 6 lakh.
- The scheme is being implemented nationally.
The company's union has opposed the scheme. Voltas had earlier offered a VRS in 1993, when it took over the refrigerator business of Hyderabad Allwyn. That scheme, which was accepted by 550 people, cost the company Rs 12 crore.
