Honda Motorcycle and Scooter India have implemented a Voluntary Retirement Scheme (VRS) for its permanent employees. The decision was taken in view and considering the market challenges and difficult conditions, and a downturn in the Indian economy.
The automotive industry has witnessed some positive changes and has been able to recover from the bounceback of the COVID-19 pandemic. The VRS policy began on January 5 and will run till January 23 this year which will cover permanent employees, barring director-level officials.
Permanent employees who have completed 10 years with the company as on January 31, 2021, and are above 40 years of age are eligible to opt for the VRS. In a statement, the company said that the Indian auto industry is going through an exceptionally challenging phase from the last three years, “considering the prolonged demand slowdown and overall economic fallout from the COVID-19 pandemic.”
The VRS announcement is a part of Honda’s overall production alignment strategy across 4 factories which will improve efficiency and will ensure long-term business sustainability. The VRS is available to all the company’s associates and gives them a new opportunity to explore new dimensions and empowers them with financial and health benefits.
It will help the company to improve its overall growth and efficiency. Under the Voluntary Retirement Scheme, senior managers, vice-presidents, and permanent workmen can get a maximum amount of Rs. 72 lakhs, Managers will get Rs. 67 lakhs, Deputy Manager Rs. 48 lakhs, Assistant Manager Rs. 36 lakhs, Senior Executive Rs. 31 lakhs, Executive Rs. 27 lakhs, and Assistant Executive Rs. 15 lakhs. The company will also offer Rs. 5 lakh extra for the first 400 employees who opt for the scheme.