The Narendra Modi-led central government that is keeping silent over intensified agitations seeking protection of Visakhapatnam Steel Plant, the management has now announced a voluntary retirement scheme (VRS) for its employees. The scheme will be applicable only to those employed after January 1 next year.
At the same time, the management has clarified that employees who retire before that date will not be eligible for the scheme. A total of 1,000 people, including 500 executives and 500 non-executive employees, will be given the first installment of VRS.
Government employees working on contract, deputation, casual workers and those on study leave are not eligible for this. However, it has been stipulated that those applying should have at least 15 years of service (seniority) and be 45 years of age.
The management has said that employees eligible for VRS can apply from the 15th to the 31st of this month. By applying, they can take advantage of the opportunity to voluntarily retire from their jobs and get some financial benefits. However, this announcement has led to various reactions among the employees.
At present, there are 12,400 employees in the steel plant. The management is taking steps to bring it down to under 10,000. This year, i.e. in 2025, 1,218 people will retire by the end of December. Now, with VRS, 1,000 people will be reduced. If the response is high,. there is a possibility of making another announcement and reducing some more people.
The announcement of this scheme has been severely criticized by the Visakhapatnam Steel Protection Committee. The committee has alleged that the management has brought this policy as part of privatization. It is known that the privatization efforts of the steel plant are already facing protests from local people and political circles.
Employees and trade unions are reacting closely to the VRS announcement. The employees are thinking about how this scheme can affect their future financial conditions. While some unions are approving the scheme, others are expressing opposition. This development is likely to lead to discussions that will prioritize the future of the steel plant and the rights of employees. It remains to be seen how effective this scheme will be.