Bharat Forge announces VRS scheme for employees at Mundhwa plant in Pune

By: |
October 26, 2021 2:46 AM

The VRS package is of Rs 17-25 lakh. Around 500 workers could be eligible for this round. The package is also being offered to junior managerial cadre with around 300 eligible for the scheme. The offer will close on November 2.

Kalyani had also spoken of developing a mega manufacturing facility at the Khed SEZ to meet the growing requirements of the business as the current facilities were fully utilised.

Bharat Forge on Monday announced a voluntary retirement scheme (VRS) for employees at its main plant located at Mundhwa in Pune. The fresh VRS scheme opened on October 23 and has been offered to all employees who are 40 years old and above and have completed 10 years of service.

The VRS package is of Rs 17-25 lakh. Around 500 workers could be eligible for this round. The package is also being offered to junior managerial cadre with around 300 eligible for the scheme. The offer will close on November 2.

Workers were taken by surprise by the move, as the company had signed a wage settlement with the Bharat Forge Kamgar Sangh at the Mundhwa plant in February. The agreement was for three years from July 2019 to June 2022 and gave them an average wage hike of Rs 14,500-Rs 15,600. This took the monthly wages at the plant in the range of Rs 45,000 to Rs 80,000.

The Mundhwa plant has 1,300 permanent workers. The main products manufactured are crankshafts and axle beams for automotives. In previous VRS rounds at the Mundhwa and Satara plants, there have been few takers, mostly those close to retirement, according to sources. Two rounds of VRS have been implemented prior to the current one. During the year ended March 31, 2021, the company spent `9.18 crore towards VRS expenses at these two plants.

Bharat Forge completed a round of VRS at its Chakan plant last month, where 212 workers accepted the package. Union sources said the average compensation offered was Rs 20-22 lakh. The Chakan plant manufactures crankshaft, knuckles, gears, shaft and T caps.

Baba Kalyani, chairman and managing director, had earlier indicated that the direction the company is taking as it got deeper into defence, e-mobility and light weighting would entail creation of a talent pool with completely new skill sets. These businesses have been put under separate companies employing larger number of engineers with expertise in software designing.

Kalyani had also spoken of developing a mega manufacturing facility at the Khed SEZ to meet the growing requirements of the business as the current facilities were fully utilised.

Bharat Forge has been investing in automation and digital manufacturing to reduce costs. The company was among the early movers in implementing Industry 4.0 across its manufacturing facilities, which Kalyani had said, would require new skills and improve labour productivity.

Workers have started training in robotics, mechatronics, AR & VR, IoT, big data analysis, sensor technology, human machine interface among other things. Around 1,100 employees have been upskilled on the new technologies, the company had said.

The company management had at its investor call earlier this year spoken about putting in place a roadmap for a very strong reduction in salary costs. “It is not only reduction in manpower, we are actually looking at the entire activity and trying to go digital where each and every man position is being examined to see whether it can be done digitally, so as you can imagine it is a little long drawn exercise, but we hope that will give us a fair amount of benefit,” the company management had said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1ICICI Venture partially exits Go Fashion with 5x returns post listing
2Rupee Cooperative Bank gets RBI extension
3Bank officers’ union launches nationwide movement against privatisation