Mumbai Port seeks job cuts through VRS
Mumbai Port hopes to cut its labor force by 3,000 through a Voluntary Retirement Scheme (VRS). The VRS, to be approved by the Government, would entail an outgo of about INR 400 crore but the port stands to save INR 150 crore yearly in wage bills, a port official said, Daily Shipping Times reports.
According to the proposed VRS, employees will be offered either one-and-half month’s salary for every completed year of service or full salary for the remaining period, whichever is lower. The Board of Trustees recently approved the scheme. Two trustees representing the labor unions opposed the VRS stating that the terms were not attractive. The VRS is part of the management’s efforts to revive Mumbai Port, which once was the country’s premier port.
Port officials expect that at least 3,000 employees will opt for the scheme now. However, there are apprehensions on how the Shipping Ministry would view the proposal. Even after the scheme, the port would still have surplus employees. On the other hand, the management may want to recruit fresh hands to address the changing nature of the cargo traffic and the port’s own operations. Last fiscal, the Mumbai Port handled 56.19 million tonnes of cargo, up 3% over the previous year. This year, it is targeting 15% growth.