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Peerless opens VRS to survive in `competitive environment'
PRESS TRUS OF INDIA
Calcutta, August 1: Peerless General Finance & Investment Company Ltd (PGFIC), the country's largest residuary non-banking finance company, on Tuesday opened its Voluntary Retirement Scheme (VRS) to cut down excess staff and survive in a fiercely competitive environment. The VRS, taken up as part of the company's restructuring exercise, would remain valid for one month till August 31, a company spokesman told PTI here. As per the management's criteria for availing of the scheme, about 3,500 employees of the total 4,600 staff would be eligible for availing the VRS, he said. Under the scheme, the retiring employees would be provided a lumpsum benefit, which shall not exceed three months' salary for each completed year of service or salary multiplied by number of months of remaining service before the normal date of retirement, whichever is less.The lump sum benefit would, however, be subject to an overall ceiling of Rs 5 lakh. Company sources said the management was compelled to introduce the scheme to abide by Reserve Bank of India (RBI) directives to reduce administrative costs and operate in a competitive environment. (PTI)The CITU-affiliated All India Peerless Employees' Union(AIPEU), however, has opposed the move saying the management was raising the bogey of RBI directives to justify its action. Anudeb Ghosh, general secretary, AIPEU, said: "We do not think the move as necessary. The company could avail of other routes for reducing administrative costs, which they did not." Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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