Closure Fears Loom as Britannia Initiates VRS at Kolkata Factory

Apprehensions loom over the closure of Britannia Industries' factory at Taratala in southern Kolkata with the company offering a voluntary retirement scheme (VRS) to all its permanent staff.

While the 120-odd permanent staff there are said to have accepted the VRS offer, no company officials have divulged what the fate of the factory would be after their exit.

Sources said that the lucrative VRS offer includes a one-time separation compensation ranging from Rs 13 lakh to Rs 22 lakh in addition to the accumulated provident fund and gratuity. The one-time compensation has been decided on the basis of the years of service left for the permanent employees and has three slabs. The VRS package was negotiated directly with the employees and the unions operating at the factory were involved in the negotiation process thus making the process smooth, sources added.

The management has notified the relevant stock exchanges about the VRS scheme being offered, and that the measure will not impact the company’s profitability.

However, the management is tightlipped about future plans relating to 250 odd contractual staff associated with the factory situated on 11 acres taken on lease from Kolkata Port Trust.--IANS