Strategies for Retrenchment, Rehabilitation, and Local Development in Small Scale Industry Initiativ

Dear Seniors,

Currently, we are facing an issue with excess manpower (workers), and we have to discontinue quite a big number of workers (most of them are female) as the company has reduced its business. We don't want to make our local people suffer due to this cost-cutting, and we feel responsible for their development and sustainability but without affecting the profitability of our company.

To manage this situation, I am thinking of generating employment for them by opening a small-scale industry (Gruhudyog sort of thing) where they can generate income for their families. As a corporate citizen, we also want the area where we operate to flourish and develop. I am thinking about starting some small-scale business with the help of the government because after a certain level, the company can't support them financially. Please suggest how I can do this and what will be the pros and cons that I need to work on before suggesting this to management for approval and implementation. Can the government support us (or me as an individual) to successfully implement this project?

Please give your inputs and direction to go ahead.

Thanks and Regards,

Aakansha-HRD

Dear Akansha,

Retrenchment and Rehabilitation through Small Scale Industry are two different aspects. You have to follow the process of retrenchment as per the provisions of the ID Act. The VRS Scheme can be implemented, and employees may actively participate in this with the assurance that they may get employment through Small Scale Industries. You may establish a Cooperative society for self-employment under CSR activities as per the provisions of the Companies Act.

Thanks & Regards,
Charanjeet

You have to work on two projects separately and simultaneously and synchronize them in such a way that once the retrenchment project is over, the rehabilitation begins. To achieve this, you will need to gain the employees' trust by involving them in the process. Please prepare a blueprint and communicate with them effectively.