1 month ago
SAIL's 'Gujarat formula' VRS sees higher uptake
The Steel Authority of India (SAIL) recently implemented a Voluntary Retirement Scheme (VRS) called the 'Gujarat formula' to reduce its workforce.
This scheme offers a special compensation package to employees who choose to retire early.
Around 750 employees from various SAIL plants opted for this scheme, which is higher than the number in 2016.
The scheme was more successful in some plants like Rourkela, while it received a lukewarm response in others like Durgapur.
The management believes this helps in optimizing labor costs, but the workers' union argues that it worsens existing manpower shortages.
SAIL's 'Gujarat formula' VRS saw 750 employees opting for voluntary retirement.
The scheme offers 35 days' salary for each completed year of service plus 25 days' salary for each year of remaining service.
SAIL's current workforce is 49,792 employees.
The VRS was more successful in Rourkela Steel Plant with 268 employees opting for it.
The Steel Workers Federation of India (SWFI) opposes the VRS, citing existing manpower shortages.
- Who
- Steel Authority of India (SAIL) employees
- What
- Voluntary Retirement Scheme (VRS) under the 'Gujarat formula'
- Where
- SAIL plants in Durgapur, Bokaro, Bhilai, and Rourkela
- When
- Application window from 20 May to 20 July
- Why
- To rationalize manpower and reduce labor costs
SAIL Management
Steel Workers Federation of India (SWFI)
Effectiveness of VRS
SAIL Management
The 'Gujarat formula' VRS is effective in rationalizing manpower and reducing labor costs.
Steel Workers Federation of India (SWFI)
The VRS is unnecessary and exacerbates existing manpower shortages in the plants.
Key facts
- Total SAIL workforce
- 49,792
- Employees opting for VRS this year
- 750
- VRS compensation package
- 35 days' salary for each completed year of service plus 25 days' salary for each year of remaining service
- SAIL plants with VRS
- Durgapur, Bokaro, Bhilai, Rourkela
- VRS application window
- 20 May to 20 July
- SAIL's manpower reduction goal
- Optimize labor cost utilization
Quotes
Lalit Mishra
General Secretary of the CITU-affiliated Steel Workers’ Federation of India (SWFI)
“"We have opposed any such move to reduce manpower. Still, it is a fact that this year’s response was higher than what we had apprehended. The plants are already suffering from perennial manpower shortages, yet the authorities are floating VRS to overcome financial stress."”
thestatesman.com
Sources
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