Though dubbed as an informal meeting, Basu's initiative to solve the crisis has brought some hope for the over 1200 employees facing the axe. The tripartite meeting took stock of the situation. Peerless director S K Roy and prominent CPM and Congress leaders Shyamal Chakraborty and Atish Sinha were present. The meeting lasted over half an hour.
Later speaking to news persons at the state secretariat, Basu said "We have had detailed discussions. Let us see." However, Ray stuck to his gun saying that they were firm on their stand. "We are offering so many incentives to the employees as part of the VRS package. None of the employees' interests would be harmed. We have apprised the chief minister of our scheme."
Ray said the company was forced to opt for the move to survive in a fiercely competitive market and to meet the recent RBI regulations.
Secretariat sources said the management of the country's largest residuary non banking finance company informed Basu of their inability of reversing the decision in the wake of the RBI directive to reduce their administrative costs which amounted to a whooping Rs 80 crore last year. The company has currently 4,600 employees. An estimated 3,500 of them would be eligible for the VRS. However, the exact number facing the axe has not been spelt out.
However, both Chakraborty and Sinha said the company in the name of modernising was acting against the interests of the workers. They said the CITU and the Intuc, the frontal trade unions of the CPM and the Congress, would meet during the day to finalise plans for a joint agitation. Chakraborty held the Peerless management's decision to diversify to different sectors as the main reason for the present financial crisis adding "They are not even listening to the solution offered by our chief minister."
Meanwhile, though the Peerless management showed "dismal performance" as the reasons for closing the different branches, the employees unions claimed the targeted branches had fulfilled the deposit collection target. They felt the company was using the RBI regulations as a shield to achieve its aim of retrenching the staff.
The VRS opened on the first of this month. To be eligible, an employee has to either be 40 years old or have a minimum of ten years of completed service. The overall ceiling on compensation package is Rs 5 lakhs. Additionally, the company will pay the retirees a monthly pension of Rs 1,200 up to the actual date of retirement. The scheme ends on August 31.
