Bokaro: Steel Authority of India Ltd (SAIL) has initiated a major workforce rationalisation exercise by circulating a draft Voluntary Retirement Scheme (VRS) for executives and non-executives across its plants and units. This move has sparked intense discussion at Bokaro Steel Plant (BSL), where employees fear it could eventually pave the way for compulsory retirement.
Eligibility Criteria
Under the draft, regular employees aged 50 or above with at least 15 years of service can apply. Contract, casual, and temporary workers are excluded from the scheme. For executives, eligibility will also depend on Average Credit Points (ACP) linked to performance appraisals.
Objectives and Compensation
SAIL stated that the objective is “manpower optimisation for effective utilisation of human resources, enhanced employee productivity, and improving quality of life of employees.” The compensation package will be calculated based on salary, completed service, and remaining years to superannuation, paid as a lump sum. It will also include gratuity, provident fund, leave encashment, pension or NPS benefits, and post-retirement medical facilities.
Conditions and Restrictions
The draft prohibits re-employment in SAIL, its subsidiaries, or joint ventures, and may require refunds if a retiree joins another PSU. Applications must be submitted online on a first-come, first-served basis. Employees facing vigilance or disciplinary proceedings are not eligible.
Employee Reactions
“Employees are worried that this may later turn into a compulsory retirement mechanism,” said B K Chaudhary of JJMS. SEFI vice chairman Ajay Pandey noted that the cap at 75% reduces the scheme’s appeal and that the draft lacks safeguards to retain critical skills.
