This document discusses strike, layoff, and voluntary retirement schemes. It defines a strike as a concerted refusal to work by employees in response to grievances. Layoffs are the temporary or permanent termination of employees for business reasons like reduced workload. Voluntary retirement schemes offer employees early retirement packages with benefits like provident fund, gratuity, and medical insurance to incentivize leaving.

1. STRIKE, LAYOFF & VOLUNTARY
RETIREMENT SCHEME
Presented By
Praveen Kumar Pai.P
S3 MBA Roll no: 28
I.M.T Punnapra

2. 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.”

3. 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.

4. 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 haven't 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

5. L AYO F F
Layoff is the temporary suspension
or permanent termination of
employment
of 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

6. 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

7. Side-effects of Layoff for the
Company
• Sometimes things don't 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 don't save money
• Threat to investments

8. Side-effects of Layoff to the
employee
When the employee losses his job, he not only losses his paycheck but
he 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

9. 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.

10. 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

11. 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

12. BENEFITS
• The normal benefits that an
employee gets:
1. Provident fund
2. Gratuity
3. Salary for the notice period
4. Cost of transfer to the
hometown

13. OTHER BENEFITS
• Also to make the scheme very
attractive for the employees
the severance package as it is
called can include other
benefits like
1. Medical insurance
2. Housing loans
3. Subsidies on children's
education loans, etc.