Page 116 - DMGT516_LABOUR_LEGISLATIONS

Unit 5: The Contract of Employment

Notes

Caselet My Experience of Implementing VRS

t was month of September, 1997, I had just joined a Company in the North India, near
Delhi, I shall call it A Company for the purpose of this case study. I had joined the A
ICompany as HR Manager. It was my first meeting with the CEO and the Executive
Director of the A Company and I was informed by both the gentlemen that due to the
financial position prevailing in the Company and disturbed Market condition, the
Management wanted to implement a Voluntary Retirement Scheme already approved by
the Government of the State for exemption under the Income Tax but due to the hostile
attitude of the Worker's Union of the factory, the VRS could not be implemented till that
time. I was also informed that the validity of the VRS will be over within one and half
months time. I was then told my task that the Management expected me to implement this
particular Voluntary Retirement Scheme within the next one month in the Factory and the
target was to persuade at least 400 employees to accept the scheme whose names were
already short listed by the Management.
After having been told about the task, I was introduced to the President, General Secretary
and other Office Bearers and Executive Committee. Having met them I could guess that
my task is going to be tough. All these chaps were locals and believers of muscle power.
They wasted no time in making me understand that if I try my hands on VRS or any issue
to which they were opposed I would be in hot water. This was my first day in the office in
the A Company and I was informed that the next day I have to be present in the Head
Office of the Company in the morning since the M.D. of the A Company was going to have
a dialogue with the President of the Worker's Union on the VRS to ask him to persuade
employees to accept VRS.
Next morning at the appointed time was ushered in to a conference room where in the
M.D. was to meet the President of the Worker's Union. I was quite amused to see that in the
room, there was only one table and two chairs and no other piece of furniture. I was
wondering where the third person would sit. I thought that there could be a special chair
for the M.D., the Seth ji in fact that may be placed in the room just before he comes. While
I was still contemplating about the chairs business I saw the M.D. walk in room and
occupy one of the Chairs, another chair was offered to me and then M.D. called his Secretary
to let the President in and I butted in between, Sir, shall I get one chair for the President, he
replied no and also told me not to worry and just watch the proceedings quietly. A few
moment latter the President walked in folded hand and half bent in respect stood there.
He was not offered to sit. Though I knew that the President was also a worker of the
factory but I was amazed to see his posture. The M.D. asked him about the VRS and he
politely replied that his other associates in the Union as well as worker's are adamant on
the stand and he could not do any thing about this. The meeting ended within few minutes
and the President left. I was quite astonished to see the treatment given to the President by
the M.D. and was not happy about this meeting. I immediately told him about my
discomfort to the M.D. and told him that this is not the way I would recommend or like to
have the meetings held and if the Management expects results from me, I must be allowed
to handle the things my way. To my surprise the M.D. immediately agreed to my request
and told that I could hold further meetings at the Factory and it will be attended by the
CEO and E.D. on his behalf.

Next day I called the President and told him about my discussion with the M.D. regarding
the future meetings and the President could hardly believe me, however, he said that if it
Contd...

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