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Reliance to offer VRS to 3,000 workers at Naroda

Nearly 3,000 employees will be offered voluntary retirement scheme by the Rs 500-billion Reliance Industries Limited group at its textile units located in Naroda industrial estate at Ahmedabad.

RIL on Monday announced plans to comprehensively restructure its textile business to focus on high value-added product ranges of men's wear and as a result of this nearly 20 per cent work force of total 15,000 employees of its Naroda unit will be reduced, a media release from the company said.

K Narayan, president, textile business, said the VRS package to be offered to the employees will have an estimated outlay of nearly Rs 800 million.

It will comprise a generous compensation for every year of continuous service, an ex-gratia for every year of remaining service up to the age of retirement and gratuity for every year of continuous service.

He further stated, ''We are proceeding with the comprehensive restructuring plan to enhance our overall competitiveness and focus on superior quality, higher margin, Vimal and Harmony products, in the broader interests of our employees and shareholders.''

He said, the company is providing a generous VRS package to the employees, as well as an option, in certain cases, for alternate employment, depending upon their specific skills.

The overall package has been arrived at in consultation with the recognised unions and has been approved by an appropriate order from the Gujarat Industrial Court, Narayan added.

The restructuring of business will contribute less than one per cent of its total revenues. Even after this restructuring the RIL will remain one of the largest employers in the private sector in the country, the release added.

UNI

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