Will KSRTC resort to mandatory VRS to cut down salary expenses?

Close on the heels of a proposal to pay salaries in two instalments, the Kerala State Road Transport Corporation (KSRTC) is now reportedly considering mandatory VRS, to cut down on expenses pertaining to salary.

Reeling under financial distress for some time now, KSRTC had recently issued a circular asking employees to select one of two options with regard to payment of salaries. They could either opt to be paid salaries in two instalments — that is, before the 5th of every month first and then the second instalment after receiving governmental financial aid — or wait for the salary to be paid in full after receipt of governmental aid.

This proposal had left the employees perplexed and unable to make a decision before 25 February, the deadline the KSRTC management had set for the employees to submit an affidavit expressing their agreement. The staff members of course are keen to receive their full salary every month by the 5th.

Now, it is reported that KSRTC is looking at launching a mandatory voluntary retirement scheme (VRS) to reduce their expenditure on salary. A list of 7,200 employees has been drawn up, comprising employees aged above 50. Those who opt for VRS will be eligible for a minimum of Rs 15 lakhs, with the remaining benefits being paid after they retire.

This initiative, it is expected, will help reduce salary expenses by half, as the total workforce strength of KSRTC is about 24,000.