Few Takers For Best & Crompton Vrs

With just about 30 workers opting for the voluntary retirement scheme (VRS) offered by the Best & Crompton management, the crisis in the city-based beleaguered engineering company has deepened. As per the original revival plan of the new promoter - Fulltech Investment of Indonesia - about Rs 6 crore was set aside for the VRS for about 330-odd workers.

As per this, payments to employees would have ranged from Rs 90,000 to a maximum of Rs 130,000. However, the ceiling has since been revised to 140,000 but still there are very few takers for the scheme. This forms part of the Rs 103-crore package worked out for the company with the new promoters to revive Best & Crompton after taking it over from Karnataka liquor baron Vijay Mallya.

 

According to union sources, the VRS will be workable only if the amount to be paid is hiked.

The other option is for the management to ensure that VRS amounts are actually paid.

Labour sources pointed out that settlements made two years back have also not been paid. It is also reliably learnt that there is a lockout threat if more workers do not opt for the VRS.

Meanwhile, notices have also been issued by the company for the closure of the steel foundry and motor pump units in Bangalore.

The two units totally employ about 200 workers and the foundry unit is said to be working only at 10 per cent of its installed capacity. With the VRS scheme almost a total failure, the next step of the management will be to retrench workers on the basis of "last to come first to go."

Such retrenchment, however, has to be done with the approval of the state labour commissioner where the labour unions will have an opportunity to oppose any such move.