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AIACE calls for VRS scheme for senior, medically unfit, inefficient staff at CIL

The AIACE has urged the management at CIL to consider framing a VRS scheme for senior employees as a cost optimisation measure

The AIACE has urged the management at CIL to consider framing a VRS scheme for senior employees as a cost optimisation measure.
The AIACE has urged the management at CIL to consider framing a VRS scheme for senior employees as a cost optimisation measure.
  • In a letter to CIL CMD Pramod Agrawal, the AIACE has said that the manpower cost at CIL has been rising fast

  • While asserting that the need of the hour calls for manpower adjustment and rationalisation, the AIACE endorsed VRS/Medical Unfit Scheme as a better alternative to retrenchment

New Delhi: The AIACE (All India Association of Coal Executives) has urged the management at CIL (Coal India Limited) to consider framing a VRS scheme for senior employees, who are above the age of 50 years and who have become less productive because of their age or some illness, as a cost optimisation measure. In a letter to CIL CMD Pramod Agrawal, the AIACE has said that the manpower cost at CIL has been rising fast. It pointed out that there are some senior employees who are drawing salaries up to Rs 2-3 lakh per month because of age and experience but their productivity is low.

“One of the reasons for increase in manpower cost is overhead cost of lesser productive employees with the highest salary due to age and experience. The rules for appointment to a service provide that a candidate must be in good mental and physical health, as well as free from any physical defect likely to interfere with the discharge of his/her duties. It is an irony that over the time span, generally 10% of this healthy workforce in our industry turn medically unfit for the jobs they have been assigned. Getting rid of such sick and disabled manpower will be inhuman and also violative of the law on protection of persons with disability. Perhaps, one reason for not retiring inefficient / medically unfit persons is misplaced sympathy.”

‘Under VRS, medically unfit executives can seek retirement’

While asserting that the need of the hour calls for manpower adjustment and rationalisation, the AIACE endorsed VRS/Medical Unfit Scheme as a better alternative to retrenchment. “Under VRS, medically challenged executives may be given option to get retirement by accepting lumpsum amount for rest of the period till the date of actual retirement,” said the letter.

“Alternatively, the sick/medically unfit executives could be allowed to take retirement with an option for employment for their son/unmarried daughter, provided they fulfil the minimum educational qualification, in the lowest category of clerical/supervisory job. If this Medical Unfit scheme is implemented, many sick executives drawing a salary in the range of Rs 2-3 lakh/month due to their seniority will readily accept the offer. In this way, a young workforce can be hired at minimum salary with maximum output. This will be a win-win situation for both the management and executives, whereby the sick executives will be free from mental trauma of day-to-day work and the management will be benefitted by paying lesser salary to the employees getting employment under Medical Unfit scheme,” said the letter.

AIACE asks management to consider VRS for executives over 50 years

“Under the circumstances, AIACE requests the management to give a serious thought for envisaging a suitable VRS scheme/Medical Unfit Scheme for executives of more than 50 years of age as a cost optimisation measure. Management may like to include additional benefits like exgratia separating bonus, health / medical insurance, education subsidies for children of such employees,” the letter said.

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