‘VRS circular’ triggers panic among Vizag steel plant employees

The Human Resources Department (Policies & Rules) of RINL-Visakhapatnam Steel Plant recently issued a circular inviting interest from its regular employees regarding their willingness to opt for Voluntary Retirement Scheme (VRS).

This led to panic among the employees, who fear that this was another attempt to trim the size of the workforce and create a platform to hand over the PSU to private parties as part of the Union government’s strategy.

The employees would have to submit their consent by October 29. Nearly 500 employees had reportedly submitted their consent as of October 23.

In the circular dated October 22, 2024, the HR informed 13,000-odd employees (both executives and non-executives) about a survey for VRS.

The circular stated that “it is planned to ascertain the willingness of eligible employees of RINL to avail of the VRS. In this regard, a module titled VRS has been created on the Employee Portal Support System (EPSS), featuring a sub-module titled ‘Survey for VRS.’ The survey is applicable to all regular employees of RINL. Employees must have at least 15 years of service at RINL and should attain 45 years as on 30 September, 2024. Eligible employees are only provided access for submitting willingness in EPSS. Employees may give their willingness in the screen available on or before October 29, 2024.”

It was made clear that the survey was only for assessing willingness for VRS and the same could not be considered as an application for VRS.

A senior management cadre officer said, “This circular seems to be an attempt to downsize the company and ultimately privatise it. These measures will save only about ₹50 crore per month, but what about the thousands of crores of losses and capital fund, the promises made by the ruling parties on the protection of the plant? What about the attempts made by Chief Minister N. Chandrababu Naidu during his latest tour in Delhi, meeting the Steel Ministry?”