Tata Motors VRS scheme to cut costs

NEW DELHI: Homegrown auto major Tata Motors on December 11 rolled out yet another voluntary retirement scheme (VRS)—the third one in just four years, according to reports. Media reports citing a communique from the company to employees say that the new VRS scheme is applicable to all permanent employees of the automaker and staff working at the plants.

The scheme will remain open until January 9, 2021, and will cover nearly half of Tata Motors’ 42,957 employees, the reports say. The email talking about the VRS scheme was sent by Ravindra Kumar GP, president and chief human resource officer on December 11. “Tata Motors continues to implement its turnaround plans effectively.

Towards this, we are also reviewing cost structures proactively while ensuring that our commitment towards employee welfare and well being remains foremost,” the email said, “As a first step and in response to employee requests, we are announcing a VRS for permanent employees and workers.” The scheme will let eligible employees avail early retirement by drawing certain compensation and benefits.