Stanchart Grindlays Floats Fresh Vrs

Standard Chartered Grindlays Bank has introduced a fresh voluntary retirement scheme (VRS) on Monday, its second scheme this fiscal.

The bank is targeting its 628 non-management staff (sub-staff and banking assistants) this time around. The VRS, which opened on October 8 will close on October 13, making it the shortest duration scheme offered in the banking industry.

The outgo is likely to be around Rs 18.5 lakh per employee and the total pay-out for the bank will be more than Rs 116 crore. The scheme is offered to all employees who have attained the age of 40 years or have completed 10 years of service as on October 8.

 

The bank had cut 574 staff through its earlier retirement scheme in Standard Chartered Bank and Standard Chartered Grindlays, which closed on June 25, 2001. Of these, 547staff which had applied for the scheme were from Grindlays.

The bank this time is not offering any early-bird scheme. Last time, it offered an incentive of eight-month salary to those staff who had opted for the scheme before a cut off-date.

The bank is offering a higher pension payout and better medical insurance scheme. "The bank is tying up for a medical insurance package for the employees till the time of retirement (60 years). It is also offering a higher minimum pension to the staff," said the spokesperson for the bank.

The minimum pension for the sub-staff is Rs 3000 per month, while that for the banking assistant is Rs 5000 per month.

The management is also relooking at options for the non-management staff at StanChart. The earlier VRS saw around 19 of the 249 staff had opted for the scheme.

Meanwhile, the process of merger between Standard Chartered Bank and Grindlays' Bank is expected to be complete in another three months. Labour union sources alleged that a plan to lay off all award staff before the merger process is completed appears to be in place. The management viewpoint is that a the fresh round of VRS would realign the work force and increase profitability.

According to the union sources, the management has been urging employees to opt for the VRS. In fact, some 200 employees at the bank were provided no assignment for the last two years. Unions argue that the fresh round of VRS was targeted at this section of the employee.