STRIKE, LAYOFF & VOLUNTARY RETIREMENT SCHEME

Presented ByPraveen Kumar Pai.PS3 MBA Roll no: 28I.M.T Punnapra

STRIKE• Strike is concerted refusal to work on the part of

workmen who are in a particular vocational area.• Strike is a work stoppage caused by mass refusal of

employees to perform work. A strike usually takes place in response to employees grievances.

• Acc. To sec2(q) of the Act “Cessation of work by a body of persons employed in an industry acting in combination or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment.”

F O R M S O F S T R I K E• Go slow –In this form of strike ,workers enter the work place

and do not do their work. Therefore, it is more prudent and safe to disallow workers to remain at their workplace ,when not doing their work.

• A general strike – is one in which all or most workers in an entire region or country go on strike together, regardless of union affiliation. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer.

Contd…• Down strike - Employees show up to their place of

employment, but they refuse to work. They also refuse to leave, which makes it very difficult for anyone to defy the union and take the workers' places.

• Sick-out (or sick-in) - All, or a significant number of union members call in sick on the same day. They haven't broken any rules, because they just use sick leave that was allotted to them. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike

LAYOFFLayoff is the temporary suspension or

permanent termination of employment

of an employee or (more commonly) a group of employees

for business reasons, such as the decision that certain positions are no longer necessary or a business

slow-down or interruption in work

C a u s e s o f J o b L a y o ff . . . Worker Characteristics

Performance Tenure Education

Organizational Change Characteristics Upcoming Merger Organizational

Restructuring

Job Characteristics Contingent vs. Permanent Part-time vs. Full-time Union vs. Non-Union

Organizational Technology Changing Technology Proximity of Job to Core

Technology

S i d e - e ff e c t s o f L a y o ff f o r t h e C o m p a n y

• Sometimes things don't work out as forecast for a company. Clients delay purchases. Suppliers raise prices. Competitors steal market share.

• Unfortunately, the very pressure to take action quickly ultimately works against their own best interest. Foolishly therefore, reducing the workforce becomes an automatic response for companies who need to cut costs. But it has its side-effects :

• Job cuts reduce performance

• Job cuts don't save money

• Threat to investments

S i d e - e ff e c t s o f L a y o ff t o t h e e m p l o y e e

When the employee losses his job, he not only losses his paycheck but he with his family experiences many other losses such as –• Loss of wages and benefits

• Loss of dignity and self esteem

•Loss of trust

• Loss of control over life

• Loss of the pattern of daily life

• Loss of the work family

• Loss of collective strength

V O L U N TA R Y R E T I R E M E N T S C H E M E .

• The Voluntary Retirement Scheme (VRS) is the latest mantra of many a corporate and Public sector units.

• VRS is a scheme whereby the employee is offered to voluntarily retire from his services before his retirement date.

• Subject to certain conditions the company offers VRS to its employees It is the golden route to cut the excess flab.

T H E G O L D E N H A N D S H A K E• The most human technique to

retrench the employees in the company today is the voluntary retirement scheme.

• It is the golden handshake for the employees and the only option today for the companies to downsize their headcount.

• The scheme which is formally permitted by the Department of Public Enterprises

Contd…• As the name suggests the VRS is strictly

voluntary i.e. one can neither compel the workers to accept it nor apply it selectively to certain individuals.

• One can however choose the levels, units and age groups among whom one wants to offer VRS.

• The company can always accept or reject the application for the VRS.

• But usually this is not done in practical circumstances as it sends wrong signals to the employees

B E N E F I T S• The normal benefits that an

employee gets:

1. Provident fund 2. Gratuity 3. Salary for the notice period 4. Cost of transfer to the

hometown

O T H E R B E N E F I T S• Also to make the scheme very

attractive for the employees the severance package as it is called can include other benefits like

1. Medical insurance 2. Housing loans 3. Subsidies on children's

education loans, etc.