Financial Daily from THE HINDU group of publications
Thursday, Mar 28, 2002
Financial Daily from THE HINDU group of publications Thursday, Mar 28, 2002 |
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Industry & Economy
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Manpower The buzzword is `rightsizing' Our Bureau
COIMBATORE, March 27 MANPOWER reduction is not uncommon anymore, even in sunrise industries. More so in manufacturing. It has been a difficult situation, though, for the companies in the country to downsize its workforce considering the size of the population, lack of employment opportunities, labour laws in force etc., besides the social stigma attached if thrown out of employment. Yet, companies have resorted to `rightsizing' to keep going. The nationalised banks announced a voluntary retirement scheme (VRS) package last year, and the unions are yet to come to terms with the reality. SO it came as a total surprise when Mr B. Muthuraman, Managing Director of the largest iron and steel manufacturing company - Tata Iron and Steel Company Ltd - casually told the audience during a meeting here that Tata Steel introduced this rightsizing measure in the early 90s itself and in the last decade there was a sizable reduction in manpower of close to 3,00,00. `It is a continuing process. At the end of this current fiscal, we will have around 4,80,00 on our rolls and we are planning to reduce it by another 4000 during the next fiscal', he said. While conceding that downsizing was a difficult task, Mr. Muthuraman said that it was equally important to make the unions and the workers understand the situation. He pointed out that the unions met once every three months to take stock of the situation, of not just about Tata Steel, but the steel industry around the world as a whole. "The VRS package is a generous one", he said. Replying to a query, he said: "We do help them get re-employment, but we have not been very successful".
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