Tata motors offers Voluntary Retirement Scheme (VRS) for 16000 workers in India

Monday 02 March 2015, 16:44 PM by

One of country leading player in the commercial and passenger vehicle segment Tata Motors has announced a Voluntary Retirement Scheme (VRS) for its estimated 16,000 workers spread across factories producing both commercial as well as passenger vehicles in the country. The move is expected to help the company reduce costs with and recover from falling market shares due to poor sales. The domestic division has been struggling with losses noted to be at `3,575 crore for the period between April-December 2014.

Tata motors offers Voluntary Retirement Scheme (VRS) for 16000 workers in India | CarTrade.com
Tata motors offers Voluntary Retirement Scheme (VRS) for 16000 workers in India

The company statement in this regard stated, “In continuation of its steps to respond to an increasingly competitive business environment and macro-economic pressures that have resulted in depressed growth of the commercial vehicle and passenger car businesses in India, Tata Motors has announced new initiatives designed to enhance competitiveness.” The VRS offer would be applicable for shop floor workers above 40 years of age. About 12% of the workforce, estimated about 2000 employees are expected to avail this offer.

The good part about the offer is that company shall not hand over a lumpsum amount as seen in most cases, instead it has offered to hand out a monthly payout till the age of 60. Commenting more on the occasion, the company spokesperson said, “This will ensure an assured monthly income as opposed to just a one-time payment of a single amount. Further, there is also a provision for medical insurance cover for a period of 10 years post separation.”

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