Over one thousand employees of the tractor unit of Hindustan Machine Tools (HMT) unit have been asked to apply for the Voluntary Retirement Scheme (VRS) by December 5. The Union Cabinet in its meeting held on October 27 had approved the closure of operations of the tractor unit of the factory.
Watch what else is in the news
In view of the deteriorating position of the company and hardships being faced by employees due to non-payment of salaries and other dues, the Cabinet had decided to close down the tractor unit and offer attractive Voluntary Retirement Scheme (VRS) to its employees at 2007 notional pay scales. The order dated November 4 also stated that employees not opting for VRS would be retrenched under the Industrial Disputes Act,1947 with three months notice period as the Tractor Division will be closed down.
“The VRS has been made compulsory. Though all employees who have completed 30 years of service will apply as they will get complete VRS, but there has been no relief for employees who have done service below 30 years,” said B D Batra, members of the HMT Employee Union.
A budgetary support of Rs 718.72 crore was also announced for the factory for payment of outstanding salaries and other employee-related dues, VRS and clearing of Tractor Division’s liabilities towards banks and creditors. The employees have been asked to register their names in the Employee Resource Centre and submit their VRS/VSS applications in the prescribed format by December 5.