American Journal of Economics and Business Administration

The Success Story of Voluntary Retirement Scheme in National Carbon Company: A Unit of Eveready Industries India Ltd

Soma Basu and Saroj K. Datta

DOI : 10.3844/ajebasp.2010.157.159

American Journal of Economics and Business Administration

Volume 2, Issue 2

Pages 157-159

Abstract

Problem statement: The success story of VRS in National Carbon Company-a unit of Eveready Industries India Ltd., Kolkata, which was the first dry cell manufacturing plant in India, is an eye opener for research scholars, practicing managers, trade union leaders and for the management students. Over the years, technology was not upgraded and so the labor cost of this unit was quite high compared to the other modernized units. The management, in order to make the plant viable took drastic measures of downsizing its workforce through VRS. Approach: The study on the success of VRS in National Carbon Company was to find out the modalities adopted by management to make the VR scheme successful. Results: Downsizing alone cannot reduce labor cost for an industry. Technology upgradation along with downsizing can reduce labor cost. Revision of VR scheme time and again helped the organization to reduce the workforce from 3500-414. Conclusion: VRS cannot be made successful if introduced unilaterally. Positive response in downsizing through VRS can be obtained provided the Trade Union extends wholehearted support for the same.

Copyright

© 2010 Soma Basu and Saroj K. Datta. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.