CPM CC On VRS

Review of the Work on the Trade Union Front
And Immediate Tasks
(Adopted by the CPIM Central Committee at its meeting -- November 22-24, 2002)


15. VRS Scheme -- A New Device of Retrenchment

With an avowed objective to reduce the workforce in various enterprises, Voluntary Retirement Schemes are being introduced in several industries in the public and the private sector. It is a part and parcel of the cost cutting exercise by industrial undertakings in the name of competitive environment under liberalisation. At times the managements offer “liberal” packages, which ultimately result in savings in their operating costs. It has been observed that some of our leading activists have also fallen prey to such schemes, which creates frustration among the employees.

Trade unions should oppose VRS plans which are purely retrenchment schemes. However, despite the stand and campaign of the unions, if individual employees avail of the scheme, they cannot be prevented by the unions. Whenever managements resort to coercive methods to get employees to accept VRS, then the union will have to take steps against such methods.