Vizag Steel Plant's Voluntary Retirement Scheme Sees Moderate Response
In Visakhapatnam, the Vizag Steel Plant (VSP) has witnessed a significant development in its workforce restructuring efforts. Around 350 employees have reportedly opted for the Voluntary Retirement Scheme (VRS) during its third phase. This number falls notably short of the management's target of 600 employees.
Management's Downsizing Strategy
The plant management initiated this VRS drive as part of a broader strategy to downsize the employee count. They issued a formal notification for the scheme last year. The third phase specifically opened for applications starting January 1, with a final submission deadline of January 20.
This recent phase follows two earlier rounds. In those first two phases, a total of 1,633 employees were removed from the payroll through VRS. Currently, the plant employs approximately 9,000 permanent staff. This figure includes about 2,700 executives and 6,300 non-executive workers.
Ongoing Workforce Reductions
The third VRS phase aims to further reduce these numbers. Additionally, natural attrition will play a role. Reports indicate that 56 employees are set to retire this month, with another 42 following next month.
The downsizing extends beyond permanent staff. More than 5,000 contract employees have been removed so far. This is out of an initial pool of around 14,000 contract workers.
Trade Union Allegations
Trade unions have voiced strong concerns about the situation. They allege that management tactics are pressuring workers into accepting VRS. Specifically, they point to delays in salary payments as a key factor forcing employees to opt for the scheme.
Unions also cite other issues driving the exodus. A lack of promotion opportunities and general uncertainty about the plant's future have contributed significantly. These factors have reportedly led many employees, including younger staff members, to either resign or take VRS.
The overall picture suggests a challenging period for Vizag Steel Plant as it navigates workforce adjustments amid operational and financial pressures.
