Micro-Scholarship, What it is, How can it help me.pdf
VRS
1. 10/3/2015
1
Strategic Human Resource
Management
Presentation
on
VRS at Organization
Prepared By
Ruchi Dalal
BBA, MBA(HR)
Nokia offers VRS to Chennai unit staff
• Currently;
• Nokia, which is fighting tax disputes with the
Central and state governments, has offered
a voluntary retirement scheme (VRS) to its
Chennai factory workers.
• The factory in Sriperumbudur near their, sale of
which has been frozen by tax authorities, employs
6,600 persons directly (60% of whom are women)
and another 20,000 on contract.
2. 10/3/2015
2
cont.
• As a responsible employer, Nokia is offering a
clear financial option for interested factory
employees.
• They feel that package offers the staff a
chance to seek new opportunities outside the
company based on a firm financial footing.
• The VRS offer is open to all employees, the
company
Cont.
• The offer is open between April 15 and May 14. Any employee
who accepts this offer from Nokia need not come from the next
day onwards but each employee will be paid for this complete
period, as per VRS documents .
• All of employees coming forward are entitled to the package.
Nokia notes that staffing at Chennai has historically fluctuated
based on demand and number of external employees used,
with the current figure at some 6,600 full-time employees.
3. 10/3/2015
3
Cont.
• Recently, about 3,000 employees affiliated to Nokia India
Thozhilalargal Sangam (Nokia India Employees Union)
staged a one-day fast here, seeking to draw the attention
of the central and state governments to their plight.
• Union sources claimed production at the Chennai plant,
considered one of the biggest for Nokia, had declined
from 13 million handsets per month to four million per
month, besides which machinery had been shifted to
countries like Vietnam.
VRS in PSB
5. 10/3/2015
5
Reason for VRS
• To cut down cost
• To compete with private company
Profit per employees (in
crore)
PSBs 0.65
Private Bank 1.46
Cost to bank
