Mumbai, May 28: Over 300 workers at drug multinational Glaxo India's Worli unit have opted for the company's latest voluntary retirement scheme (VRS), as part of the ongoing restructuring exercise before its merger with Burroughs Wellcome.

The development is also seen as a step towards the eventual closure of the Worli formulations unit. Glaxo's Worli unit, employs about 850 workers (before the opening of the current VRS).

According to industry sources, the current scheme offers workers basic and dearness allowance (DA) on every remaining month of service with a ceiling of Rs 5 lakh per employee. It is open to those who are over 40 years of age and have at least 10 years of service in the company.

The VRS for workers is expected to be followed by a similar golden handshake scheme for management-level employees.

Glaxo officials, in response to faxed questionnaires from The Financial Express, said that the VRS process had not been completed and so no comments could be made.

Sources, however, said that Glaxo had also extended an option to workers to move to the company's Thane unit or Burroughs Wellcome's unit in Mulund.

Besides, the company was also looking at offering clerical positions to those workers who fit the bill. Analysts said that Glaxo has been gradually shifting its formulation activity to its state-of-the art Nashik facility which offered substantial scope for expansion compared with the Worli unit.

"The rationalisation efforts by the company would mean lower staff costs in future and will benefit Glaxo Wellcome India," an analyst said. In fact, Glaxo had recently cited `transfer of some production to the Nashik unit' as one of the reasons for considering a lease of its Vasant Vijay bulding at Worli in Mumbai.

This is probably the third major VRS offer being made at the Worli unit. Glaxo had in May 1995 announced a VRS for its management staff and 125 personnel out of an eligible 230 (including those at Worli) had opted for the scheme.

Approximately 300 management staff (out of a total 800) are based at Glaxo's head-office and Worli factory.

The earlier VRS (in October 1994) was open to about 660 workers at the Thane and Worli factories and 460 workers had then accepted the golden handshake.

Analysts added that last year Glaxo had completed a successful VRS at several sales depots paving the way for their replacement with clearing and forwarding (C&F) agents.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.