Financial Times

SLT to bid farewell to 1,100 employees under VRS scheme
SLT has organised a series of valedictory functions to bid farewell and hand over terminal benefits and service certificates to the first phase of 763 employees who retired under the Voluntary Retirement Scheme (VRS).

SLT’s VRS is a phased out plan that allows employees of non-executive category between 50-59 years age to voluntarily retire by December 31 in the first phase and between 45 – 50 years in the second phase. In the 1st phase 763 employees of a total number of 1025 employees took the offer to retire voluntarily on September 30 while the balance of around 350 will be retired by VRS on December 31 under its second phase.

Most of the employees who subscribed to the scheme had joined SLT during the Telecommunication Department administrative period.

The company said SLT’s VRS came into effect as a result of its restructuring plan to improve productivity. The scheme will help the company to right size its work force and re-engineer it based on the actual demand.

The average age of the staff, which is presently 43 years will plummet enabling SLT to keep the right blend of the age of its staff. The right blend and higher skill levels are absolute necessities in an era where the company is facing stiff competition. International telecom industry standards suggest high ratio of Direct Exchange Lines (DEL) per employee. After VRS, Sri Lanka Telecom will increase its DEL to 95 from 38 in 1996.

SLT offered the attractive VRS package at a cost of Rs. 710 million to be recovered within two years. Outgoing employees on the scheme will obtain a financial package from Rs. 150,000 to Rs. 1,100,000.

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