Tisco Marketing Staff In Ess Net
The Tata Iron & Steel Company has brought its unionised staff in the marketing and sales divisions under the purview of its 'early separation scheme' (ESS) for the first time.
This was the result of a wage accord signed between the company's managing director J J Irani and the marketing division unions in Calcutta last Friday.
A senior Tisco official said the pact will come into effect from October 1. "Since the early separation schemes in the company are available for short periods, the present ESS package will be in effect for a period of two months up to November," he said.
The scheme will be applicable to about 1,400 people in the marketing and sales departments in Tata Centre, the company's marketing headquarters, in Calcutta and at the branch offices.
The move is in line with the company's attempts to rationalise its employee strength. The steel major had already offered such a package to officers earlier during the year. Tisco sources did not specify the expenditure on the fresh rationalisation drive.
This scheme will not, however, be extended to officers. This is because an ESS package was made available in April-May this year, which included officers of the marketing and sales departments apart as well as from other divisions in Jamshedpur like the collieries and mines. About 315 officers, which included a few from the marketing department, opted for the scheme, an official said. The unionised staff in Jamshedpur opting for the early separation scheme number almost 5,500 to date, said the source. This includes staff from the raw material division too.
The early separation scheme was first introduced in February 1995 in two instalments. It was primarily for additional staff but with the closure of the Steel Melting Shop Number 1 and Bar Forge Shop, officers in these units also opted for the scheme. The next round was in May 1996.
When asked what the optimum size of a workforce could be, the official said: "In Tisco, we are bound by a commitment not to retrench anybody and in such a position, any reduction in workforce is welcome." Moreover, as all these posts would stand to be surrendered, the cut in workforce is a positive sign, he added.
Under the present ESS, benefits would accrue till superannuation. Staffers opting for the ESS within the age of 40 to 45 would get 1.25 times their last salary drawn (Basic plus Dearness Allowance). Those opting for the scheme after crossing the age of 45 would get 1.5 times their last drawn salary till superannuation.
According to the official, there is also a facility for those who opt for ESS to draw interest-free loans of Rs 3 lakh or 50 per cent of their total pension benefits, whichever is less.