Calcutta, Nov 23: Flender Ltd, manufacturer of gear boxes, has offered a voluntary retirement scheme to all 177 employees at its Majerhat factory in Calcutta. The scheme, which opened on November 19, and will be open for 15 days. Flender was an associate firm of BM Khaitan's Williamson Magor, and was known as Flender Macneill Gears Ltd.

Flender's other factory at Kharagpur is running on two shifts instead of three. The management has categorically stated "under no circumstances will the scheme be extended beyond the closing day, ie December 3."

The employees and the unions apprehend that employees not opting for the scheme will face retrenchment since the company has stated that losses are mounting and are expected to increase further this year.

The VRS notice, signed by managing director Udo-E Land, divides employees into three categories based on balance service. Those opting for the scheme will also get gratuity, leave encashment, annual bonus for the balance period of service this year and provident fund dues.

Employees with up to five years of service left will be given a lumpsum payment of Rs 1.5 lakh on the basis of the compensation package calculated at the rate of Rs 30,000 per year. Employees with balance service ranging between six and ten years will be given Rs 2.75 lakh and those with a balance service of 11 years or more will get Rs 3 lakh. The compensation package of these two categories have been calculated at the rate of Rs 35,000 per year. According to union sources, though the notice has termed it as VRS, all the 177 employees have been orally asked to opt for it. The VRS notice points out "the retiring employee of the company will not be employed in another company or concern belonging to the same management". The Flender management, in its preamble to the VRS notice, stated, "the products manufactured at Majerhat are drastically losing market, which has little or no demand making its business totally unviable." Union sources said that the factory is situated on land owned by Macneill. After the closure,it may be handed over to Macneill will be used for real-estate development.

Scheme on at Dewarance, Kilburn units too

Voluntary retirement schemes are also being offered at Dewrance Macneill Co Ltd and Kilburn Reprographics Ltd, two associate companies of Willamson Magor. According to sources, the Dewrance management is planning to bring down the employee strength from the existing 200 to 130 at least, in accordance with the recommendations of its bankers.

Dewrance Macneill, an engineering company, had earlier shifted its factory outside Calcutta. It was situated next to the present factory of Flender Ltd at Majerhat. The factory of Kilburn Reprographics Ltd, a manufacturer postal franking machines, was also situated at Majerhat.

The company plans to prune its rolls by at least 45 from the existing strength of 77. The company which was also situated at Majerhat was relocated, lost a major chunk of the business after the department of posts blacklisted it on grounds of manufacturing defective machines.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.