VRS employees of Vizag Steel move court over pending dues

Employees who opted for the Voluntary Retirement Scheme (VRS) at the Visakhapatnam Steel Plant (VSP) have approached the court, alleging non-payment of arrears even a year after their retirement.

In their petition, the employees urged the court to issue notices to the plant management and direct it to clear the pending dues along with 12% interest within one to two weeks.

Expressing dissatisfaction over the delay, around 130 VRS employees contended that, as per rules, all financial benefits should be settled on the last working day. They pointed out that over 1,130 employees who opted for VRS on March 31 last year received the full retirement package. However, 464 employees who opted in September received only 50% of their dues in two instalments, while 67 employees who opted in March this year were paid just 25% of the package.

AITUC union leader Adinarayana alleged that funds released by the Centre for VRS payments had been diverted by the plant management.

Union leaders further accused the management of adopting delay tactics in clearing arrears. They said no timeline had been announced for the release of pending amounts, even as the plant and the Ministry have claimed improved production and profitability.

“The management has not indicated when the remaining dues will be released. Despite claims of better performance and profits, payments to VRS employees remain pending,” they alleged.