UNSTARRED QUESTION NO 541
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?
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.
NATIONAL TEXTILE CORPORATION LIMITED
|Sl. No.||NAME OF THE SUBSIDIARY||
NO. OF EMPLOYEES RETIRED UNDER MVRS
(RS. IN CRORES)
NATIONAL TEXTILE CORPORATION LIMITED
MODIFIED VOLUNTARY RETIREMENT SCHEME (MVRS)
|1.0||SCHEME, SCOPE AND ELIGIBILITY|
|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:-
|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.
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
|Approved by Board of
Directors of NTC (HC) in its Meeting held on 24.12.2001 and effective
|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 ;
|1.6.3||Employees who resign from the services
of the company in a normal manner are not entitled to MVRS.
|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
|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
|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
|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
|4.1||Balance in the Provident
Funds Accounts payable as per Employees Provident Fund Act and rules
|4.2||Cash equivalent of
accumulated earned leave/privilege leave as per the rules of the
|4.3||Gratuity as per Payment of
Gratuity Act or the Gratuity Scheme, if any.
|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
|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,
|5.4||The existing permanency
level shall not be increased and no badly/temporary/casual converted
|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
|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|
Gratuity shall be calculated as per provisions contained in the payment
of Gratuity Act, 1972, as amended from time to time.
|7.1||CMD of NTC (HOLDING
COMPANY) shall be competent to modify/alter/amend the said Scheme.
Approved vrs revised scheme – I
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