Of this, 500 workers have left from the mill's Sewree unit and 100 from the Kurla plant.

The VRS package offers 36 days' salary for every completed year of service along with 15 days' gratuity for every completed year of service. On an average, workers who have completed 30 years of service will get about Rs 3 lakh as retirement package.

The management wanted to reduce 1,000 workers of the 1,900. The management expects another 400 workers to opt for the golden handshake. The management says the reduction in the number of workers is required as it plans to undertake large-scale modernisation of the plant.

The management and the Rashtriya Mills Mazdoor Sangh (RMMS), which is the employees union, have signed an agreement. According to the memorandum of understanding, the rationalisation proposals ofthe two units shall be implemented for various legal agreements as under the Bombay Industrial Relations Act. A VRS will be mutually drawn for the benefit of surplus employees willing to retire. Employees not willing to retire will be provided with alternative work, which they shall carry out without objection or complaint. They will be trained for the purpose.

The Swan Mills having factories at Sewree and Kurla has about 17 acres of land.