STRIKE, LAYOFF & VOLUNTARY RETIREMENT SCHEME Presented By Praveen Kumar Pai.P S3 MBA Roll no: 28 I.M.T Punnapra
ST R IKE• Strike is concerted refusal to work on the part of workmen who are in a particular vocational area.• Strike is a work stoppage caused by mass refusal of employees to perform work. A strike usually takes place in response to employees grievances.• Acc. To sec2(q) of the Act “Cessation of work by a body of persons employed in an industry acting in combination or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment.”
FORMS OF STRIKE• Go slow –In this form of strike ,workers enter the work place and do not do their work. Therefore, it is more prudent and safe to disallow workers to remain at their workplace ,when not doing their work.• A general strike – is one in which all or most workers in an entire region or country go on strike together, regardless of union affiliation. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer.
Contd…• Down strike - Employees show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for anyone to defy the union and take the workers places.• Sick-out (or sick-in) - All, or a significant number of union members call in sick on the same day. They havent broken any rules, because they just use sick leave that was allotted to them. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike
L AYO F FLayoff is the temporary suspension or permanent termination of employmentof an employee or (more commonly) a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work
C a u s e s o f J o b L a y o f f. . . Worker Characteristics Job Characteristics Performance Contingent vs. Permanent Tenure Part-time vs. Full-time Education Union vs. Non-Union Organizational Change Organizational Technology Characteristics Changing Technology Upcoming Merger Proximity of Job to Core Organizational Technology Restructuring
Side-effects of Layoff for the Company• Sometimes things dont work out as forecast for a company. Clients delay purchases. Suppliers raise prices. Competitors steal market share.• Unfortunately, the very pressure to take action quickly ultimately works against their own best interest. Foolishly therefore, reducing the workforce becomes an automatic response for companies who need to cut costs. But it has its side-effects :• Job cuts reduce performance• Job cuts dont save money• Threat to investments
Side-effects of Layoff to the employeeWhen the employee losses his job, he not only losses his paycheck buthe with his family experiences many other losses such as –• Loss of wages and benefits• Loss of dignity and self esteem•Loss of trust• Loss of control over life• Loss of the pattern of daily life• Loss of the work family• Loss of collective strength
V O L U N TA R Y R E T I R E M E N T SCHEME.• The Voluntary Retirement Scheme (VRS) is the latest mantra of many a corporate and Public sector units.• VRS is a scheme whereby the employee is offered to voluntarily retire from his services before his retirement date.• Subject to certain conditions the company offers VRS to its employees It is the golden route to cut the excess flab.
THE GOLDEN HANDSHAKE• The most human technique to retrench the employees in the company today is the voluntary retirement scheme.• It is the golden handshake for the employees and the only option today for the companies to downsize their headcount.• The scheme which is formally permitted by the Department of Public Enterprises
Contd…• As the name suggests the VRS is strictly voluntary i.e. one can neither compel the workers to accept it nor apply it selectively to certain individuals.• One can however choose the levels, units and age groups among whom one wants to offer VRS.• The company can always accept or reject the application for the VRS.• But usually this is not done in practical circumstances as it sends wrong signals to the employees
BENEFITS• The normal benefits that an employee gets:1. Provident fund2. Gratuity3. Salary for the notice period4. Cost of transfer to the hometown
OTHER BENEFITS• Also to make the scheme very attractive for the employees the severance package as it is called can include other benefits like1. Medical insurance2. Housing loans3. Subsidies on childrens education loans, etc.