CUTS A ?SARI? PICTURE: A Tantuja official displays a range of saris. A Telegraph picture

A report suggesting ways to revamp Tantuja, a loss-making state undertaking involved in the sale of saris and other garments, has sparked an uproar among employees.

The report, prepared by WEBCON, a consulting agency of the government, has suggested that half the employees be given early retirement and the salary of the rest be frozen for a certain period of time, among other measures. ?This has become necessary, as in 2003-04, Tantuja had incurred a loss of Rs 9 crore,? said a senior official of the agency.

General secretary of the State Government Employees? Federation P.B. Nag, however, threatened to organise a movement if the government accepted the proposals. ?Instead of creating job opportunities, the government is bent on increasing the number of unemployed,? he claimed.

President of the federation Manoj Chakraborty said: ?We have no objection if the government goes for modernisation or upgrade of Tantuja, but we will never accept any early retirement scheme or a freeze on the salary.?

A Tantuja official, however, said the WEBCON suggestions are being studied and that nothing has been finalised. ?No decision will be taken without a discussion and there is nothing to be worried about.?

The report on the proposed modernisation of Tantuja, with 138 showrooms across the state and around 1,000 employees, was discussed in detail in the presence of industries minister Nirupam Sen on March 2.

The principal secretary and other senior officials of the cottage and small-scale industries department and Tantuja attended the meeting.

All the participants stressed the need for restructuring the organisation, founded in 1954, into a viable enterprise, not dependent on government doles.

The WEBCON report has pointed out that to improve the financial health of the organisation, it is necessary to bring 50 per cent of the employees under the early retirement scheme and enforce a temporary freeze on salaries.

The report also suggested modernisation in designs and a change in the business pattern, including adoption of the franchisee system.

It stressed that the break-even stage should be reached within two years of the start of the restructuring exercise and the public purpose for the revamp should be highlighted.

The government has asked WEBCON to undertake ?another in-depth study? and look again into certain key proposals, like a freeze on the salary.

The agency has also been asked to explore options like payment of performance-based annual incentives to employees and announcing a minimum guaranteed pay.