Ashok Leyland begins VRS scheme second time in two years amid COVID-19 pandemic

Ashok Leyland, a flagship of Hinduja Group, said on Saturday that it has started a Voluntary Retirement Scheme

Ashok Leyland, a Hinduja Group flagship, mentioned on Saturday that it has began a Voluntary Retirement Scheme (VRS) for its staff. Its board of administrators, at a gathering held on 6 November, accepted the scheme, Ashok Leyland mentioned in a BSE submitting. The VRS scheme is open for all those that have accomplished a minimal one 12 months service with the organisation. The scheme will likely be applied over a interval of 9 months, the corporate mentioned.

“Upon implementation and execution, the VRS would assist optimise the capability and assets of the corporate,” the heavy vehicles-maker mentioned within the submitting.

“The present panorama of the worldwide pandemic gives scope for folks to pursue versatile profession alternatives and this may present a window for a similar,” mentioned N V Balachandar – President HR, CSR and Communication. “There have been many requests from staff for early retirement, and this scheme gives them with a viable exit,” he added.

Final 12 months, Ashok Leyland launched two schemes — a Voluntary Retirement Scheme and an Worker Separation Scheme (ESS) for these staff not eligible for VRS. Underneath the ESS, compensation payable to an government below ‘A’ class will likely be 30 lakh or decrease, whereas within the ‘B’ class, it will likely be 60 lakh and above. “An government who opts for separation below ESS will likely be eligible for a lump sum compensation”, the corporate mentioned.

The auto main posted a web lack of 147 crore within the second quarter ended September resulting from weak demand for industrial autos within the wake of the pandemic. Income through the quarter below evaluate fell to 2,837 crore. Commenting on the efficiency within the second quarter, Ashok Leyland Ltd managing director and chief government officer Vipin Sondhi mentioned: “Whereas the challenges out there resulting from COVID-19 proceed, the corporate has seen a marked enchancment within the firm’s efficiency on this quarter.”

It reported 1% enhance in whole industrial car gross sales at 9,989 models in October. Home gross sales declined 2% to eight,885 models in October, the corporate mentioned. Whole heavy and medium industrial car gross sales had been down 11% at 4,588 models final month. The slowdown within the automotive business and COVID-19 pandemic pressured many producers to downsize staff.

Ashok Leyland additionally introduced that it has floated a wholly-owned subsidiary to construct bus our bodies and coaches. The corporate mentioned in a regulatory submitting that it has invested 60 crore within the fairness of the subsidiary, Vishwa Buses and Coaches Ltd, and the corporate is but to start out industrial operations.

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