The company has a 12,000-strong work force spread across the two plants in Pune and the target is to reduce the number to 7,500, claim sources at the Telco Employees Union. Telco is the first company in the country to have opted for an independent retirement scheme for its workers.

The union labour ministry approved the ESS scheme designed by Tata Engineering. The ESS is different from the routine voluntary retirement scheme under which a lumpsum is offered to workers to opt for early retire-ment. The focus of ESS in on providing pension and extending medical benefits to employees.

Those opting for an early retirement will be eligible to receive basic pay up to 60 years of age along with dearness allowance. The employee and his spouse will get medical benefits during this period. The scheme has been divided into three categories wherein workers up to the age of 45 years will receive 90 per cent of the basic pay plus the dearness allowance. Employees between 45 years to 55 years will get 100 per cent of basic pay besides dearness allowance while workers falling in the age group of 55 years will receive 110 per cent of basic pay and dearness allowance. In addition, workers will be eligible for an interest-free loan of around Rs 2 lakh for either setting up their own business or constructing their own houses.The management has reserved the right to decide which workers would be eligible for this scheme.

The ESS scheme is targeted at workers who have family business to fall back on or those who are unable to attend work on medical grounds.