Tata Motors’ lately floated voluntary retirement scheme (VRS) for workers at its passenger and industrial car plants in Pune may well not uncover adequate takers, union leaders have mentioned.
As aspect of its price restructuring workout, the organization came up with the scheme on December 11 for its permanent staff and workers. The scheme will stay open till January 9, 2021.
According to a member of the Tata Motors Employee Union, the official internal union at the plant, the impending wage agreement could be one particular purpose for workers not opting for the VRS.
Dilip Pawar, president of the Shramik Ekta Mahasangh, an umbrella body for labour unions in the Pune area, mentioned prevailing financial situations could also be a purpose. “Workers are not going to give up their jobs easily given the uncertainty, job losses and wage cuts. All the VRS in the recent past have not received a good response from workers,” Pawar mentioned.
Tata Motors has separate unions at its plants in Pune, Sanand, Lucknow, Dharwad, Pantnagar and Jamshedpur. The organization has been signing lengthy-term wage settlement (LTS) agreements with the workers at these plants.
The Pune plant, has about 6,000 workers, of whom about 60% work in the passenger car plant and about 40% in the industrial car plant. Tata Motors had signed an LTS agreement with the Pune staff union in February 2019, which ends in September 2021. Negotiations for the new agreement will start out quickly.
The final agreement, saw workmen get a wage rise of `9,000 per month in the fixed element and chance to earn incentives up to Rs 6,000 primarily based on productivity, high-quality and security. This had taken wages in the organization up to Rs 70,000 to Rs 90,000.
Tata Motors mentioned it was implementing its turnaround plans efficiently and was therefore reviewing its fixed price structures even though guaranteeing employee welfare and well-being. “As a first step and in response to employee requests, a rewarding voluntary retirement scheme for employees and workers which creates a mutually beneficial proposition … has been announced … The compensation and benefits being offered under the VRS are amongst the best in industry and include health insurance as well as guidance on financial and retirement planning,” the organization mentioned.
According to union sources, the VRS delivers 80% of standard spend plus dearness allowance (DA) to these in the age group of 40 to 45 years, till they turn 60. Those in the 45 to 50 age group will get 90% of standard plus DA, even though these in the 50 to 55 age group will get one hundred% of standard plus DA. For all in the 55 to 60 age group, the organization has provided 110% of standard plus DA.
Around 2,000 folks are probably to be eligible for the scheme.
Union sources mentioned the organization has enhanced the give for these above 50 years by 10% compared to the prior round of voluntary retirements. But this would only attract these closer to retirement and these with overall health or fitness troubles.
Earlier this year, Bharat Forge had provided a VRS to workers at its plants at Mundhwa in Pune and Satara in between July and September 2020, but only 20 workers opted for it, which price the organization Rs 2.91 crore. Bharat Forge floated a second VRS in November 2020 for workers with 10 or more years of practical experience.
Environment and power organization Thermax, as well, announced a VRS for all staff at its plant in Chinchwad more than 40 years of age or these who have completed 10 years at the plant. While 200 of the 285 workers had been eligible for the scheme, about 47 opted for it, costing the organization Rs 9.13 crore.