VRS scheme for McDowell staff

The board of directors of McDowell & Company approved, on Tuesday, a voluntary retirement scheme (VRS) to facilitate the separation of surplus manpower.

According to a statement from the company, the operational merger of several spirits companies of the UB group has given rise to surplus manpower across the companies.  In order to reap the benefit of this merger, which will result in a reduction in the overall strength of employees, the scheme for voluntary separation is being offered to employees, the statement added.

The company added that the rationale behind the move is that younger employees would still find it possible to locate alternate source of employment.  The employees who are opting for the VRS cannot take up any other assignment in any of the UB Group companies.

While the scheme is voluntary, the management has the absolute discretion to accept or reject an application for separation under the scheme.

The directors of the company are not eligible to participate in the scheme. The scheme is applicable to all employees of McDowell - whether executives or workmen.  If, however, specific schemes are in place for workmen as a result of negotiation with unions, those schemes will continue.

Similar schemes will be proposed to the boards of Shaw Wallace Distilleries and Herbertsons.

It is expected that up to around 200 executives out of the total pool of executives on the rolls of all the merging entities may opt for the scheme.