Financial Daily from THE HINDU group of publications
Wednesday, Jun 09, 2004
Corporate - Manpower
BPCL terms VRS a success
Mumbai , June 8
BHARAT Petroleum Corporation Ltd will be trimmer by 445 people after the closure of its voluntary retirement scheme.
The company, which was till recently on the block for sale of Government stake, described the response to the scheme as "overwhelming".
"We had not expected so many people to opt for voluntary retirement considering we had offered the employees the standard Department of Public Enterprises package. BPCL had tried to convince the then Union Government to let us offer our employees a more lucrative package, similar to the first VRS offered by Indian Oil Corporation. But, in spite of it, the response to the scheme was very good," Mr S. Narayan, Director (Human Resources) told Business Line.
Of the 445 people to leave the company, roughly 120 are from the management cadre, 70 from the clerical order and 255 are labour. BPCL has 12,433 employees.
The company has targeted those near the 42-year age-bracket.
The package offered includes remuneration equal to two months' salary for every year the retiring employee has worked with BPCL, or salary for the remaining number of years of service whichever is lesser.
According to a company official, the ERP implementation had left the company with nearly a 1,000 extra positions.
This VRS almost halves that figure.
"Of those who opted for voluntary retirement, many were those who decided (to leave) because of the Government's decision to privatise BPCL and left anyway, in spite of a change in the disinvestment agenda," the official said.
Among the rest, many were women employees.
But there are also a number of those who will be joining rival private sector companies, putting up their own marketing networks, he said.
BPCL's VRS opened between April 1 and May 31, 2004.
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