MUL to shell out Rs 65-crore for VRS plan

Our Corporate Bureau

New Delhi, Oct 30: Maruti Udyog would suffer an outgo of Rs 65 crore on account of its voluntary retirement scheme (VRS). Nearly 19 per cent of Maruti Udyog’s workforce totalling 1050 employees have opted for the VRS which closed on October 23.

With the reduced workforce, the company would be able to manufacture at 120 per cent plant capacity. The VRS was open for a month. The employee strength in the company is 5646 as on September 24 and now stands at 4596, says a release.

Maruti’s VRS came in the wake of sharp improvements in productivity achieved by the company, it says. The objectives of the scheme were to provide a graceful exit to employees who, either due to age or medical reasons, could not meet performance expectations in a competitive marketplace, the release adds. Employees opting for the VRS were from various levels and functional areas of the company.
They included technicians, assistants, supervisors and senior managers. Mainly workers have opted for the scheme, a company spokesperson said. The eligible age for technicians is 40 years, 45 years for supervisors and 50 years for department managers. A worker who opts for the scheme would get a three months salary for each completed year.