Indian Express 03.03.2010
55 workers of AMC co-op bank agree to take voluntary retirement
Express News Service Tags : bank, AMC co op bank agree Posted: Wednesday, Mar 03, 2010 at 0346 hrs
Ahmedabad: In a major development, 55 of the 70 employees of the AMC Co-operative Bank have agreed to take voluntary retirement from the troubled bank, now placed under section 35 of the Banking Regulation Act. This will help the bank save a huge sum on salary payments, according to the bank administrator A B Gadhvi.
Till now, the bank was shelling out Rs 2 crore towards monthly salary of the staff.
“The latest development will lead to saving of Rs 1.65 crore a year because now the bank will pay salary to only 15 employees amounting to Rs 35 lakh a year,” he said.
The voluntarily retiring employees will not be entitled for any additional benefits that general go with Voluntary Retirement Scheme (VRS), Gadhvi said. They will get only fund, deposit and leave salary after deducting any dues, he said.
A notice for the layoff was earlier issued to employee unions under the provisions of Bombay Industrial Relations Act and they were explained pros and cons of accepting or not accepting the layoff offer, Gadhvi said.
Overtime, increments and bonuses were shelved after the administrator took charge of the bank.
With the latest development, the bank has been put on a fast recovery path, Gadhvi said. Also payments for cash handling and clearing operations duty have been stopped, he added.
