Jamshedpur, Jan. 22: Tata Steel is all set to reduce existing manpower by another 2,000 through the Early Separation Scheme (ESS) launched by the company this year.

At present, the company has 22,000 employees at its city-based plant and is aiming to slash it to 20,000 through the ESS scheme.

This is the second time in 11 months that the steel major has floated an early separation scheme (ESS). Earlier, the scheme was floated in March last year and nearly 1,200 employees had opted for it.

Officials of the company’s human resource department (HRD) said the ESS scheme introduced by the company on January 20 would be open till February 19. “It is too early to comment but we are expecting a better response this time as the new scheme has been prepared keeping in view the employees’ interest,” said an official.

Officials said the financial benefits will be the same as the earlier schemes floated by the company and the biggest advantage of the new scheme would be that it would allow the employees who opt for the scheme to retain the company’s quarters for two years.

Under the new scheme, an employee below 45 years would get 100 per cent of his basic and dearness allowance (DA) and those above that would get 120 per cent of the basic and DA in the form of monthly pension. The employees, opting for the scheme, would also get Rs 1 lakh as loan, to be provided in two equal installments.Company officials said the new ESS scheme would also be offered to those employees who had earlier refused to accept such schemes.

Head of the human resources and industrial relation (HRIR) B.N. Sarangi said every aspect of employees’ benefit has been kept in mind while formulating the ESS scheme. “Even the employees of Tubes Division of the steel major and the Tisco Growth Shop (TGS) can opt for the scheme,” Sarangi said.

Tata Workers’ Union (TWU) president R.B.B. Singh said: “Allowing employees who opt for the scheme to retain the company’s quarters for two years and providing an opportunity to those workers, who had earlier refused to accept it, are the biggest advantages.”