The Hindu Business Line : Pfizer to offer VRS with dose of `invest advice'

THIS could well be breaking new ground in terms of worker-related policies from companies. Pfizer Ltd is exploring an innovative separation scheme for its workmen at the closed Chandigarh plant.

In an effort to help workers who accept the voluntary retirement scheme (VRS), Pfizer has sought presentations from two investment firms to "advise" on how to "suitably invest" the money they receive as part of the VRS. The proposal is being negotiated with the Pfizer employees union, whose support would be required to implement the concept.

Pfizer's Chandigarh plant is a fermentation facility that employed about 83 workmen. The company had closed this plant in February this year.

Critics of the VRS have in the past argued that corporate responsibility does not end with placing money in the hands of the employee, while relieving them from work. Employees are not suitably equipped to invest their funds sensibly and often end up spending all the money they receive as part of the VRS, with no way to recover it, they observed.

Mr Kewal Handa, Executive Director-Finance, Pfizer Lid, told Business Line that while there were issues, "we are trying to make it more easy for the union and those who want to accept the VRS. We have sought presentations from two investment firms to help mange their portfolio, so that it becomes easier for them to invest, post-VRS. We will pick up their (the investment firms') tabs for managing their portfolios." Pfizer expects to complete the process this year, after which it would look for a prospective buyer for the Chandigarh plant.

While the VRS proposal is still being negotiated, he pointed out that it would help employees by advising them how to invest and giving details of returns they could get on their investments.

"People are worried about the returns their investments will fetch, besides worrying about the security of their investments itself," he said and added that the current proposal was a learning from the VRS extended by the company in the past.

Further, he said: "We will look to put a similar proposal in place for all VRS in future and we will also look at how to take it up for people who have taken VRS in the past. May be employees who super-annuate or retire can also take advantage of this."

Pfizer's strategy worldwide has been to have a single manufacturing facility in one country, company officials said. As part of this rationalisation, two more manufacturing plants in the Pfizer fold, Hyderabad and Ankleshwar, would also be on the block, they said.

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