NCT: Revision of Pay of Employees & Modified voluntary Retirement Scheme

GOVERNMENT OF INDIA

MINISTRY OF TEXTILES

LOK SABHA

UNSTARRED QUESTION NO 541

ANSWERED ON 23.07.2015

Revision of Pay of Employees

541 . N.K. PREMACHANDRAN

Will the Minister of TEXTILES be pleased to state:-

(a) whether the Government has revised the pay, wages and other service benefits available to the employees working in the mills under the National Textile Corporation (NTC) time to time and if so, the details thereof;



(b) whether the Government has implemented VRS and MVRS scheme for the employees working in the mills under the NTC and if so, the details thereof;

(c) whether the Government proposes to extend the benefit of MVRS scheme implemented for the employees of Minarva Mills for the similarly placed other mills and if so, the details thereof; 

(d) whether the Government proposes to implement the MVRS scheme implemented in Minarva Mills to the employees of Parvathi Mills, Kollam and if so,the details thereof; and

(e) the details regarding the proposals pending with the Government for the welfare of employees in Parvathi Mills, Kollam?

ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF TEXTILES
(SHRI SANTOSH KUMAR GANGWAR)

(a): Pay, wages and other benefits has been revised by NTC Ltd. of the on roll employees of the working mills from time to time i.e. during the year 1992, 1997 and 2007 to the employees governed by Industrial Dearness Allowance pay pattern and during the year 1986, 1996 and 2006 to the employees governed by Central Dearness Allowance pay pattern.

(b): VRS and MVRS has been implemented by NTC to the employees in the units identified for closure and surplus employees of working units, Head Office, Regional Offices and Retailed Marketing Division of NTC. So far NTC has given MVRS to 63297 employees at a total cost of Rs.2373.86 crores, details as given in Annexure – I. 

(c): Modified Voluntary Retirement Scheme (MVRS) has been uniformly applied for similarly placed mills. A copy of the scheme is at Annexure – II. 

(d): Modified Voluntary Retirement Scheme (MVRS) has been uniformly applied to the employees of Parvathi Mills, Kollam and so far 644 employees has availed the benefit at a total cost of Rs.16.81 crores.

(e): No such proposal is pending.

Annexure-I

NATIONAL TEXTILE CORPORATION LIMITED
30.06.2015
Sl. No.	NAME OF THE SUBSIDIARY	NO. OF EMPLOYEES RETIRED UNDER MVRS					AMOUNT PAID (RS. IN CRORES)
		WORKERS	STAFF	SUP.	OFFICERS	TOTAL
1	NTC (HC)	0	67	0	47	114	9.34
2	NTC (APKKM)	4403	573	140	65	5181	179.00
3	NTC (DPR)	3464	406	44	53	3967	101.29
4	NTC (GUJARAT)	7128	681	298	38	8145	296.63
5	NTC (WRO)	19870	1564	319	77	21830	1042.97
6	NTC (MP)	6784	577	121	47	7529	198.00
7	NTC (TN&P)	2898	288	5	48	3239	87.84
8	NTC (UP)	7073	1318	236	85	8712	260.12
9	NTC (WBABO)	3117	1366	30	67	4580	198.67
	TOTAL	54737	6840	1193	527	63297	2373.86

Annexure-II

NATIONAL TEXTILE CORPORATION LIMITED (HOLDING COMPANY)
MODIFIED VOLUNTARY RETIREMENT SCHEME (MVRS)
1.0	SCHEME, SCOPE AND ELIGIBILITY
	Scheme
	1.1	In supersession of Revised Voluntary Retirement Scheme circulated vide letter No. NTC/VRS/15/2000 dated 19th June, 2001; a modified Voluntary Retirement scheme vide DPE’s O.M. No. 2(32)/97-DPE(WC)/GL/LVI dated 6th November, 2001 and with the approval of MOT vide letter No. 18011/7/94 dated 14.12.2001 is introduced to rationalize surplus manpower and reduce its losses.
	1.2	The scheme has been categorized as Modified Voluntary Retirement Scheme (MVRS). The scope, eligibility, benefits, etc are given hereunder:-
	Scope
	1.3	The schemes shall apply to all regular/permanent employees, badly/substitute/temporary/casual workers (by whatever name called) who are within the sanctioned strength and whose name appear in the muster roll of 39 mills as per Annexure-II in the phase-I and 21 Mills as per Annexure-III in the phase-II. However, the scheme will be extended only in other mills will be notified in due course.
	Eligibility
	1.4	Modified voluntary Retirement Scheme (MVRS).
		Regular/Permanent employees, Badli/Substitute/Temporary/ Casual workers (by whatever name called and are being paid regular wages) within the sanctioned strength and whose name appear in the muster roll of NTC Mills as indicated in para 1.3 above are eligible to opt for voluntary retirement by tendering resignation from the post held in NTC in the prescribed from. The benefits under the Scheme are given at para 3.1. The trainees under any scheme are not eligible for MVRS.
		Approved by Board of Directors of NTC (HC) in its Meeting held on 24.12.2001 and effective w.e.f. 01.01.2002.
	1.5	The age of superannuation/retirement shall be treated as 58 years as applicable or as specifically provided for in the Certified Standing Order/Agreements/Awards/by the company which are legally enforceable. An employees shall not be eligible to alter his date of birth once declared and accepted in the service/PF records. The management of NTC shall not entertain any request/plea for change in date of birth. Retirement benefits under this scheme shall be calculated and paid as per the original declaration/evidence of date of birth or as furnished in original Provident Funds records, whichever is earlier.
	1.6	The Management reserves the right to refuse a MVRS application without assigning any reasons. Further applications for MVRS in-respect of the 1.6.1 & 1.6.2 may be put up before Board of Director for consideration:-
		1.6.1	Where disciplinary proceeding are either pending or are contemplated against the employee concerned for imposition of major penalty;
		1.6.2	Whether prosecution in a Criminal Court is contemplated or may have already been launched in any Court of Law ; and
		1.6.3	Employees who resign from the services of the company in a normal manner are not entitled to MVRS.
2.0	COMPETENT AUTHORITY
	2.1	The Competent Authority for accepting an employees’ offer for MVRS as applicable, shall be the Appointing Authority. In the case of workmen working in a mill, General Manager (Head of the mill unit, when no General Manager is appointed) of the mill shall be the Competent Authority except in the cases referred at 1.6.1 & 1.6.2 above in whose case acceptance or otherwise shall be Board Director.
3.0	BENEFITS UNDER THE SCHEME
	An employee whose offer for Modified Voluntary Retirement is accepted, shall be entitled to the compensation, details of which are given in the succeeding paragraphs.
Modified Voluntary Retirement Scheme (MVRS)
	3.1.1	Ex- gratia payment equivalent to 35 day for every completed year of service and 25 days for the balance of service left until superannuation. The compensation will be subject to a minimum of Rs. 25,000/- or 250 days salary whichever is higher. However, this compensation shall not exceed the sum of the salary that the employee would draw at the prevailing level for the balance of the period left before superannuation.
	3.1.2	The Additional Ex-gratia compensation payable to an employees shall be as under:-
		(i)	Where there was no wage revision after 1.1.87 additional compensation of 100% of the eligible, Ex-gratia amount as per para 3.1.1.
		(ii)	Where there was no wage revision after 1.1.92 additional compensation of 50% of the eligible Ex-gratia amount as per para 3.1.1.
	3.1.3	Salary for purpose of VRS will consist of basic Pay+DA+HRA only. Any amount of adhoc/award will not be taken into account for this purpose.
	3.1.4	Arrears of salary/wages paid due to revision, etc. will be included in computing the eligible amount and difference would be paid.
	3.1.5	Payment of Bonus as per provisions in the Act.
	3.1.6	For the purpose of reckoning a month while calculating Ex-gratia amount, it shall be reckoned as 30 days in a month. Further, compensation for proportionate month is also to be taken in to account for calculation for the Ex-gratia.
	3.1.7	In the case of Badli workers compensation will be paid @ 35 days for every completed year and 25 days compensation for the remaining service irrespective of minimum requirement of 240 days service in a year (as in the case of permanent employees) once their names are borne on the muster roll of the mill.
OTHER TERMINAL BENEFITS UNDER THE SCHEME
	4.1	Balance in the Provident Funds Accounts payable as per Employees Provident Fund Act and rules made thereunder.
	4.2	Cash equivalent of accumulated earned leave/privilege leave as per the rules of the mills/office, concerned.
	4.3	Gratuity as per Payment of Gratuity Act or the Gratuity Scheme, if any.
5.0	PROCEDURE
	5.1	An eligible employee may submit an application in the prescribed form for voluntary retirement under the scheme by tendering resignation from the post hold and service in NTC to the Competent Authority. The post falling vacant as a result of an employee’s voluntary retirement under the scheme shall in all case stand abolished simultaneously while accepting resignation and order to that effect issued simultaneously before disbursing retirement benefits to employees under this scheme and no person (Permanent/badly/substitute/temporary, etc.) shall be engaged in his/her place.
	5.2	The abolition of a vacant post shall not be treated as substitute for abolition of an occupied post. In exceptional cases and for reasons to be recorded in writing a corresponding manned post (Not vacant post) can also be abolished. Orders to this effect shall be issued before accepting resignation and disbursing retirement benefits.
	5.3	An employee retiring under this scheme shall not be eligible for appointment in any mills/office/retail showrooms etc. of NTC group in any capacity, whatsoever.
	5.4	The existing permanency level shall not be increased and no badly/temporary/casual converted into permanent.
	5.5	All payments under this scheme shall be made by crossed Account Payee Cheques only in favour of the retiring employee. The cheque shall be handed over to the retiring employee only after he/she affixes his signature/thumb impression in taken of its receipt, which shall be countersigned by at least two witnesses. In the case of workmen in the mills, Labour Welfare Officer and the Security Officer of the mills concerned shall also countersign.
	5.6	The period of any type of training e.g. Management Trainees, Trainee Supervisor or Company Trainee, like apprentice training before being absorbed in regular grade in continuation of training will not be taken into account for reckoning the length of service in the Company.
	5.7	In the case of show-room employees of Retail Marketing Division the calculation of compensation/ex-gratia will be on the basis of their average salary plus average of incentive/commission earned by them over a period of best five years.
	5.8	The Modified VR Scheme is also applicable to Casual/Temporary (by whatever name called) workers of NTC mill provided they had worked for minimum 240 days in a year.
	5.9	Payment under the scheme is subject to employee’s vacating Company’s accommodation or leased accommodation, returning of all of Company’s properties held by him/her and payment of all outstanding dues to the Company.
	5.10	Once an employee avails himself/herself of voluntary retirement from a PSU, he/she shall not be allowed to take up employment in any other PSU. If he/she desires to do so, he/she shall have to return the VRS compensation received by him/her to the PSU concerned. Where the compensation was paid out of a Government grant, the PSU concerned shall remit the refunded amount to the Government grant, the PSU concerned shall remit the refunded amount to the Government. In case the PSU is already closed/merged, the VRS compensation shall be returned directly to the Government.
METHOD OF CALCUTATION OF GRATUITY
	6.1	GRATUITY:- Gratuity shall be calculated as per provisions contained in the payment of Gratuity Act, 1972, as amended from time to time.
7.0	AMENDMENTS
	7.1	CMD of NTC (HOLDING COMPANY) shall be competent to modify/alter/amend the said Scheme.

1.01.2002

(K.RAMACHANDRAN PILLAI)

DIRECTOR- HUMAN RESOUCES 

Approved vrs revised scheme - I

Source: Loksabha.nic.in