Another 1300 MTNL employees to quit by June
New Delhi, Apr 25 (UNI) Mahanagar Telephone Nigam Limited today said that another set of 1300 employees would opt for the Voluntary Retirement Scheme (VRS) and quit by June this year.
This is the third round of VRS that would be underway, MTNL's, Director Finance Anita Soni said here at a press conference.
In the first round 2000 C and D workers were laid off and in the 612 class B employees were retired in the second round, Ms Soni said.
All this trimming of staff has helped reduce staff costs, she added.
Due to the implementation of the overall cost control campaign the administrative and other operating expenses during the current year have decreased by Rs 17.2 crores, Chairman and Managing Director R S P Sinha said at the conference.
In the third round of VR scheme opened only for 15-20 days 1300 employees sought retirement. We have already signed agreement and with effect from June 1 all of them shall be relieved," Mr Sinha said.
About the financial package offered to employees, Mr Sinha said, "as always we have been offering very attractive package... We have ensured that all employees are taken good care of even after retirement." Earlier, 612 employees were relieved for which MTNL had kept aside about Rs. 170 crore. For the current round, Mr Sinha said details were being worked out.
The company managed to introduce three rounds of VRS within a span of one year despite tremendous pressure from the unions against job cuts.
Last year MTNL had separated over 1200 employees in the group C and D category.
"No doubt that MTNL has about 20 per cent workforce. We are trying to leverage it in two ways -- by increasing the turnover/revenue from our operations and secondly by offering attractive VRS ensuring that they are not at disadvantage," Mr Sinha said.
With the completion of third round of VRS, MTNL has a workforce of little about 50,000 and that of group-C and D would be about 41,000.
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