Kochi: In an effort to reduce costs, the fertiliser giant, Fertilisers and Chemicals Travancore (FACT) has decided to further prune its manpower by implementing a special voluntary retirement scheme (VRS) package for pre-1978 category employees.

Considering the pending requests from some employees for voluntary retirement, including from those belonging to the pre-1978 category non-managerial cadres, it has been decided to offer the special VRS once again, FACT management said in a press release.

Of the nearly 6000 employees, the pre-1978 category workers number around 700. Of this, 365 workers would retire by 2006.

As per the scheme, the maximum ex-gratia allowed would be Rs 5 lakh besides other benefits like gratuity and provident fund (PF). In view of fund constraints, it would not be possible to grant VR in one phase to all those who apply, the release said.

Since the management has exhausted the grant-in-aid from the government for VRS, the funds are to be generated from internal savings. Certain posts are also likely to be abolished.

In the earlier VRS package, of the 400 who had applied, applications of 313 employees had been accepted. Of this, about 240 belonged to pre-1978 category.

The retirement age of those who joined the company after 1978 has already been reduced to 58 years. While granting financial relief to FACT during 2001-2002, the central government had stipulated that the retirement age of employees below board level should be 58 years.

PTI