by Editor News
Toyota has become the fourth auto company to launch VRS for its employees in the past two months.
With continuous declining auto sales in the country and no scope of recovery in market sentiment, Toyota Kirloskar Motor has announced a voluntary retirement scheme (VRS) for its permanent employees, as per a report.
After this initiative, the Indian subsidiary of Toyota has become the fourth auto company to launch VRS for its employees in the past two months. The other companies are Ashok Leyland, General Motors and Hero MotoCorp.
The report says that Toyota had launched the scheme on 23rd September and would run up to 22nd October 2019. The scheme is focused on permanent employees with more than 5 years of experience. The report stated: "the company is not yet countering in the temporary workforce as of now but their contracts have not been renewed by the automaker.”
Before Toyota Kirloskar Motor, one of the country's top commercial vehicle makers Ashok Leyland also took similar action in the month of August 2019 followed by a series of production cuts. After this, two-wheeler market leader Hero MotoCorp also launched a VRS for its employees in the month of September. According to industry experts, the companies mainly issue such schemes to cut their operating cost and to make a profit.
Gaurav Vangaal said that VRS creates a beneficial situation for the employee as well as the employer during hard times. He also said that it is better than firing an employee. Vangaal also said that by taking such actions companies successfully give a glimpse of employee value.
The first six months of the current financial year resulted in the production crash of Toyota Kirloskar by 37 per cent. Hero Motocorp's production also dipped by 36 per cent. The production of Ashok Leyland also decreased by 18 per cent during April-September 2019.
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