On the finance minister's proposal to give 60 days' wages for every year completed in service for employees who have put in more than 30 years of service, he said, ``Employees with 30 years of service form at best one per cent of the entire workforce. What about the rest?'' Besides, the finance minister has yet again failed to specify which are the sick units for which revival plans must be worked out, he said.

p``These general sweeping statements are indicative of a lack of initiative. Eight years after the industrial policy of 1991, there are still no specifics about whichunits are to be shut down, which are to be revived and how many employees are going to face the axe,'' said Rao. Besides, a majority of the trade unions feel that the present offer is just not good enough. ``In a separate case, the Delhi High Court has already awarded six years' payout in VRS, which should be taken as a benchmark for any future VRS schemes,'' said W R Vardarajan, secretary of the Central Indian Trade Unions (CITU).

He cited the example of PSUs where the management has issued circulars threatening closure of the units unless employees opt for the VRS. ``One such case was the Bharat Process Mechanical and Engineering Company. In such cases, VRS is no longer voluntary.''

Yet another aspect of trimming PSU flab has been the government's assurance that those taking VRS would be given training and rehabilitation support. ``This aspect has been completely neglected. From 1991 to date, only about 2,000 people have been retrained,'' Chandi Das Sinha, secretary of the All India Trade UnionCongress (INTUC) said.

The finance minister had recently announced that the government would give 60 days' salary for every completed year of service to an employee with 30 years' or more service in a bid to trim losses of sick PSUs and make the VRS scheme more attractive.

In case of employees with less than 30 years service, the payout will be at the rate of 45 days' salary for every completed year of service. However, the divestment commission in its sixth report has admitted that in several PSUs, including profit-making ones, staffing levels are well in excess of comparable competing units in domestic and international markets.

The finance minister had also announced setting up of a restructuring fund to meet the expenses of reviving sick PSUs, including their VRS payouts. But this leaves the National Renewal Fund (NRF) and its need in question. The NRF was set up in 1991 to fund revival requirements of sick PSUs but the budgetary allocation to it has been dwindling each year.