In the midst of the privatisation controversy, the decision will help eliminate the fears of workers and other employees. It is true that privatisation is crucial for reducing the fiscal burden of sick public sector enterprises. However, before closing down such units, a rehabilitation package for workers has to be framed which provides them and their families basic benefits and a stable future.
The new scheme has a well-designed plan to provide different packages to workers according to their years in service once they voluntarily accept the lay-off. The idea of having different plans for financially sound enterprises from those that are very sick or marginally sick, signifies constructive thinking on the part of the Government. However, this cannot provide a comprehensive solution to the complex problem of workers' rehabilitation. The Government has to take up the suggestion of the Disinvestment Commission and establish a PSU Disinvestment Fund which will tackle the issue on a long term basis through proper investment of the money received from the golden handshake. The Government also has to ensure that the VRS benefits are invested on behalf of the employees in order to provide them with long term social security. The Disinvestment Commission had foreseen the difficulties that are arising today and had outlined a scheme that would take care of the workers' future after they accept the VRS. The main purpose is to assure them a regular flow of income over a long period of time and a protective umbrella of welfare measures. Unless such a safety net is guaranteed, there is no way in which the disinvestment process can progress. The fact is that downsizing or right-sizing will remain an essential factor in making many of the public sector units viable and to enable them to push through technological upgradation. Overstaffing also makes it difficult to inject fresh talent in new and innovative projects. Hence, in a balanced plan of rehabilitation, the Government must also have job-retraining programmes. Indeed, unless the PSU downsizing plan kicks off in full earnest, no one will buy PSU shares in the future and the disinvestment target of Rs 10,000 crore for the current fiscal year will be hard to meet.