Thermax Ltd, as part of its ongoing business restructuring exercise, has announced its much awaited voluntary retirement scheme (VRS) for its professional and management grade staff. The VRS offer is expected to cut employee strength by 200 to 250, and may cost the company close to Rs 15 crore.
The VRS programme will remain open up to August 21, 2001, and is part of Thermax's ongoing business restructuring exercise. However, the VRS is not being offered at the very senior levels of management.
The company has unveiled two variants of the scheme. Under its scheme I, employees who are 40 plus or with 10 years of completed service in the company are eligible. Scheme II is being targeted at the age group of up to 40 years. The compensation under the scheme will be up to a maximum of Rs 6.25 lakh.
According to company sources, the VRS offers an ideal exit opportunity for middle-level management cadres and administrative support staff, who have become surplus due to integration of businesses and streamlining of processes.
Thermax is in the process of pruning material and employee costs. Manufacturing and operational processes are being streamlined to improve its bottomline. The company's wage bill, at about 14 per cent of the turnover, is considered very high in the Indian engineering sector. Post-VRS, the wage bill is expected to come down, though sources say it will continue to have surplus workforce unless business orders pick-up. Thermax's current staff strength is about 1,350 people, excluding group companies, which employee about 400 people.
The company has set-up a 'Help Desk' to provide assistance in investment and counselling services for employees who opt for VRS.
