Voltas Plans Third Vrs In Two Years
Voltas is planning to go in for a fresh round of voluntary retirement scheme (VRS) -- the third in two years. The scheme is part of the company's strategy to prune wage costs. Around 700 surplus workforce has been identified for implementing the scheme.
"We still have around 700 excess manpower and propose to have another round of VRS shortly," senior Voltas officials said.
The estimated expenditure for the scheme is around Rs 25 crore. The employee strength as on March 31 after the last VRS was reduced to 5,136 from 5,807, down from the peak level of over 10,000 in the mid-1990s.
"People who have reached the age of 55 years would go in for a VRS, but large number of staff, who are in the region of 40-plus, will not accept the proposal. Thus the company's intention to reduce workforce again may not be successful," senior Voltas employees union officials said.
According to them, the management this time would probably target employees at the Thane unit.
The company has been facing industrial-relation problems for the last three years. The management and the unions have been at loggerheads regarding the downsizing.
Several flash strikes were organised by the unions in recent years, the last one being on Wednesday -- the day of the firm's annual general meeting.
Currently, three employees in Mumbai and eight employees in New Delhi have been suspended. As many as six employees were dismissed from New Delhi office.
The company officials said: "The management and the unions are in constant dialogue to bring down the staff strength further." However, the unions has so far never came forward with a concrete proposal regarding the management's concerns.
However, the markets view the proposed VRS programme positively. According to analysts, the VRS would help the company reduce costs and improve profitability.
Voltas has been going in for a restructuring of its operations, which included exiting from all non-core operations and consolidation of its core business, following the first-ever loss in 1996-97.