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Madhumita Chakraborty
New Delhi, May 8: The Steel Authority of India Limited has launched a more bold voluntary retirement scheme (VRS) beginning June 1, in a bid to ``rationalise'' its huge workforce. The SAIL manpower remains 1.7 lakh strong, even after 6,000 employees accepted the VRS scheme that became operational last year. The public sector steel giant also put into effect a sabbatical leave scheme on March 31 this year, to provide an opportunity for some of its gigantic workforce to test out greener pastures.
The two-year sabbatical allows the younger members of the SAIL family to leave without pay for a couple of years for ``self-renewal, enhancement of expertise/knowledge and experimentation,'' which could broadly translate into higher studies or even new employment. The new VRS scheme open till March 31 next year, will be more lucrative and be offered to younger employees than the old scheme.
The old scheme was open to employees who had put in 20 years of service or were more than 50 years old. Sail is now preparedto offer a severance package to employees that have put in more than 15 years of service or are above 40 years of age. The new scheme is a deferred payment scheme like the old one, with extra carrots thrown in, like a five per cent increase in monthly benefits for each of the three designated age-groups, eligible for the scheme. The VRS scheme offered last year, provided an income that was equal to 100 per cent of the basic pay and DA of an employee above the age of 50 years.
The new scheme will entitle employees who are more than 55 years old to 105 per cent of their basic pay and dearness allowance (DA). SAIL staff aged between 52 years and 55 years will get 95 per cent of their basic pay and DA, while those less than 52 years old, will get 85% of their prevailing basic and DA.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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