Alternative Models for VRS in Manufacturing
The aging workforce in the manufacturing industry causes restricted deployment, as many workers can't perform heavy jobs. Is there any alternative model for Voluntary Retirement Scheme (VRS) that a manufacturing company can offer its aging union workers as an exit route?
From India, Hyderabad
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The aging workforce in the manufacturing industry causes restricted deployment, as many workers can't perform heavy jobs. Is there any alternative model for Voluntary Retirement Scheme (VRS) that a manufacturing company can offer its aging union workers as an exit route?
From India, Hyderabad
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How to manage an aging workforce with restrictive productivity
The following steps, other than Voluntary Retirement Scheme (VRS), may be implemented:
Identify and assess workers
Identify debilitated, infirm, or "deadwood" workers and refer them for a medical examination to determine their medical fitness and validation to continue working.
There are possibly old or chronically sick workers whose continuation in employment may be risky, and they may be targeted. Workers who have not furnished documentary proof of their date of birth may also be referred for a medical examination to clinically determine their approximate age. The medical officer can issue a certificate mentioning the approximate age. If the age of the workers is higher than the age of superannuation as prescribed under the company's certified standing orders, they may be superannuated from service.
Address lack of documentation
It is common in old establishments that many workers do not furnish documentary proof like a school certificate or any valid record at the time of joining, and the management accepts oral testimony of age and records it. Ironically, some of these workers may be sexagenarian or septuagenarian and continue in employment, which is detrimental to the company's overall productivity, besides being vulnerable to fatal accidents.
Action plans for exiting workers
These people can be easily exited from service by following action plans:
A medical examination could be conducted either by the Factory Medical Officer (if authorized under certified standing orders) or the Government District Medical Officer, as the case may be, and a letter of discharge be issued once they are certified and clinically estimated to be over 60 years of age.
The discharge letter should be carefully worded, stating "...Due to continued ill health..." as a necessary phrase in the case of medically unfit or invalidated workers, whereas in the case of aged workers, "...As you have surpassed the age of superannuation, you are hereby relieved from the company's services..."
Handling middle-aged, unproductive workers
There is yet another category of workers who are middle-aged, medically stable but lazy and unproductive or "deadwood." These workers may be discharged from service by paying wages or salaries equivalent to such months as prescribed in the employment contract or appointment letter for termination of service in lieu of the notice period. This is called discharge simplicitor.
All these legally tenable approaches can be tried.
Managing union resistance
In a unionized environment, the union may strongly protest or resist such a move and may incite workers to stage a go-slow, stay-in strike, and other restrictive practices.
The management or employer should successfully handle such industrial relations issues with conviction. Apart from the above, the employer can initiate disciplinary action against workers for low productivity, underproduction, malingering, idleness, etc., to build records for ultimate termination.
Regards, P. Senthilkumar [Phone Number Removed For Privacy-Reasons]
From India, Chennai
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51The following steps, other than Voluntary Retirement Scheme (VRS), may be implemented:
Identify and assess workers
Identify debilitated, infirm, or "deadwood" workers and refer them for a medical examination to determine their medical fitness and validation to continue working.
There are possibly old or chronically sick workers whose continuation in employment may be risky, and they may be targeted. Workers who have not furnished documentary proof of their date of birth may also be referred for a medical examination to clinically determine their approximate age. The medical officer can issue a certificate mentioning the approximate age. If the age of the workers is higher than the age of superannuation as prescribed under the company's certified standing orders, they may be superannuated from service.
Address lack of documentation
It is common in old establishments that many workers do not furnish documentary proof like a school certificate or any valid record at the time of joining, and the management accepts oral testimony of age and records it. Ironically, some of these workers may be sexagenarian or septuagenarian and continue in employment, which is detrimental to the company's overall productivity, besides being vulnerable to fatal accidents.
Action plans for exiting workers
These people can be easily exited from service by following action plans:
A medical examination could be conducted either by the Factory Medical Officer (if authorized under certified standing orders) or the Government District Medical Officer, as the case may be, and a letter of discharge be issued once they are certified and clinically estimated to be over 60 years of age.
The discharge letter should be carefully worded, stating "...Due to continued ill health..." as a necessary phrase in the case of medically unfit or invalidated workers, whereas in the case of aged workers, "...As you have surpassed the age of superannuation, you are hereby relieved from the company's services..."
Handling middle-aged, unproductive workers
There is yet another category of workers who are middle-aged, medically stable but lazy and unproductive or "deadwood." These workers may be discharged from service by paying wages or salaries equivalent to such months as prescribed in the employment contract or appointment letter for termination of service in lieu of the notice period. This is called discharge simplicitor.
All these legally tenable approaches can be tried.
Managing union resistance
In a unionized environment, the union may strongly protest or resist such a move and may incite workers to stage a go-slow, stay-in strike, and other restrictive practices.
The management or employer should successfully handle such industrial relations issues with conviction. Apart from the above, the employer can initiate disciplinary action against workers for low productivity, underproduction, malingering, idleness, etc., to build records for ultimate termination.
Regards, P. Senthilkumar [Phone Number Removed For Privacy-Reasons]
From India, Chennai
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