Tata Motors has floated a voluntary retirement scheme in its bid to rein in fixed costs and implement the turnaround plans effectively, according to people aware of the development. This is the third time in four years that the Tata group flagship is floating a VRS.
The scheme announced on Friday is applicable to all the permanent employees and those employed at the plants, as per a communiqué reviewed by Business Standard.
“Tata Motors continues to implement its turnaround plans effectively. Towards this, we are also reviewing cost structures proactively while ensuring that our commitment towards employee welfare and well being remains foremost,” said an email sent to the employees by Ravindra Kumar GP, president and chief human resource officer on 11 December. It is open till 9 January.
“As a first step and in response to employee requests, we are announcing a VRS for permanent employees and workers,” it said. the scheme provides to all those eligible to apply, to avail early retirement by drawing certain compensation and benefits, said the email. The compensation and benefits being offered under the scheme are among “the best in the industry” and includes health insurance as well as guidance on financial and retirement planning, it added.
The scheme is open till 9 January, said those aware of the development. Tata Motors joins other companies. Tata Motors employs close to 42,957 employees and almost half of them will be eligible for the scheme.
Tata Motors joins other auto firms including Hero MotoCorp, Toyota Kirloskar Motors and Ashok Leyland that had implemented similar schemes to shave off costs amid a protracted slowdown that has been heightened by the Covid-19 pandemic.