In yet another attempt to merge with GlaxoSmithKline Pharmaceuticals in India, Burroughs Wellcome has announced a VRS for the 510-strong workforce at its Mulund plant in the city.

The company has informed the Bombay Stock Exchange about the VRS. The scheme will close on July 8, 2003. The company has announced an incentive of Rs 100,000 for employees who avail of the scheme by July 1.

Although globally, GlaxoSmithKline Pharmaceuticals and Burroughs Wellcome have merged, the Indian merger has been held up due to staunch opposition by employees of the Mulund plant.

The employees have been refusing to fall in line with the merger plans, as they would have to accept a cut in salaries. GlaxoSmithKline salary scales are lower than those prevailing in Burroughs Wellcome.

"It is a fair and generous scheme and is related to the balance years of service left," a spokesman for GlaxoSmithKline Pharmaceuticals said. If all employees accept the scheme, then the outgo on this front would be Rs 60 crore (Rs 600 million).

The VRS has been offered to employees in three categories -- those who have put in up to 15 years service, those who have put in 15-30 years, and those who have worked for more than 30 years.

It is understood that the compensation of those employees who have larger number of years of service left is higher.