Bengaluru: Toyota Kirloskar Motor (TKM) has initiated a voluntary retirement scheme for the employees of its manufacturing facility in Bidadi, Karnataka. The firm has commenced the scheme for its unionised employees and supervisory category with a minimum of five years of service at the plant.

This has come as a major shocker for the company’s employees.

Nava-Jeevana Yojane, a voluntary depersonalisation scheme, commenced from September 22, is scheduled to run till October 23.

TKM Vice-Chairman Shekar Viswanathan said the scheme was purely voluntary and has no relation to TKM’s business situation. “The scheme is launched in order to support the employees to ensure career change with financial security and to achieve their aspirational goals or desired career by separating from the organisation,” Viswanathan said.

Employees opting to apply for the scheme will receive a compensation package in addition to normal retirement benefits, he added.

Sources say that those who are active in labour unions will be given first preference in the scheme.

The company currently has two plants at Bidadi with a total installed production capacity of 310,000 units per annum.

The VRS comes at a time when the automobile industry is seeing a major dip in vehicle sales across all segments.

With inputs from PTI