SAIL'S VOLUNTARY RETIREMENT SCHEME
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INTRODUCTION
THE DILEMMA
THE PERSUASION & THE RELATION
SAIL TU leaders were emphatic that the McKinsey
recommendations were not the last word on SAIL. They felt that foreign
consultancy firms were unable to appreciate the role played by major public
sector units like SAIL or Indian Oil in the growth of the Indian economy.
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They alleged that since large public sector units had
shown they could withstand the onslaught of the multinationals, efforts
were being made to weaken them, break them into pieces and eventually
privatize them.
On February 17, 2000, workers at SSP went on a strike against the
government's decision to restructure SAIL. The strike was called by eight
unions affiliated to CITU, INTUC, ADMK and PMK. CITU secretary Tapan Sen
said: "The unions are going to serve the ultimatum to the government for
indefinite action in the days to come if this retrograde decision is not
reversed. Demonstrations were held against the government's decision in
all steel plants and workers of Durgapur would hold a daylong dharna.
Steel workers all over the country, irrespective of affiliations have
reacted sharply to the disastrous and deceptive decision of the government
on
the so-called restructuring of SAIL." |
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1. McKinsey's recommendation is that SAIL cut its workforce
to 100,000 by the end of 2003. SAIL has launched various VR schemes to meet
this target. Though every time the company is comes out with improved
schemes there are still not many takers. What according to you could be the
reasons?
2. The staff education exercise on VRS at SAIL seems to be
more of a reaction to the power plant hive-off fiasco than a proactive
measure. What other steps can SAIL take to educate employees about VRS?
Explain.
3. According to McKinsey proposals, offering VRS to
employees was the part of the restructuring plan. Do you think VRS is
sufficient without restructuring or vice-versa? Comment.
4. In February 2001, SAIL ended its four-year recruitment
freeze by announcing its plans to fill up more than 250 posts. Do you think
this is the right move especially when a VRS is being offered to its
employees? Explain.
ADDITIONAL READING &
REFERENCES:
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Bhandari Bhupesh, SAIL sill has an appetite for
equity, Business World, February 7, 1996.
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Sarkar Ranju, Has SAIL recast its bottomline?,
Business Today, July 22, 1997.
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Maitra Dilip, Did SAIL smelt its profits in its
furnaces?, Business Today, November 7, 1998.
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Sarkar Ranju, Can SAIL rapidly (Re)Steel its
future?, Business Today, July 22, 1999.
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Pannu SPS, Debate on AI contract labour case
reopened, The Hindustan Times, August 15, 1999.
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Ghosh Indranil, In choppy waters, Business India,
August 9, 1999.
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Mazumdar Rakhi, The TAO of top, Business Today,
September 22, 1999.
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Chandrashekhar R. The case of the voluntary VRS,
Business Today, September 22, 1999.
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SAIL: The new CEO centre, Business Today, November
22, 1999.
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Srinivas Alam, SAIL restructuring: the other guy
blinked, Business Today, April 22,
2000.
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Ghosh Indranil, On the road to recovery, Business
India, June 12, 2000.
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Chandrashekhar R. The case of effective downsizing,
Business Today, June 22, 2000.
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SAIL to kick off retirement scheme next month,
India Today Online, September 05, 2000.
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SAIL ends 4-year recruitment freeze, The Economic
Times, February 9, 2001.
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Srinivasan MV, Voluntary retirement and workers'
welfare, www.epw.org.in.
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www.indiainfoline.com.
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Sweet D.H., Derecruitment & Outplacement.
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Boller R., What Colour Is Your Parachute?
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R. L. Dipboye, The Older Workforce.
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Kaye B., Up Is Not The Only Way.
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Sweet D. H., A Manager's Guide To Termination.
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Spurgeon H. & Howbert P.A., Ready, Fire!
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Walker J.W. & Lazar H.L., The End Of Mandatory
Retirement.
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