UTI asks officers to vacate quarters

MUMBAI: Though the finance ministry had repeatedly stated that the interests of UTI employees would be safeguarded, some recent HR initiatives by UTI Mutual has caused consternation among employees of the country’s largest mutual fund.
Last week, UTI Mutual served notices to over 1,000 officers to vacate their staff quarters by April next year. UTI, which own real estate worth around Rs 900 crore, has over Rs 100 crore worth of residential buildings which will be put up for sale by the administrator, said sources.
This move could take on political hue as representatives of the UTI Employees Association have had informal meetings with Shiv Sena leader Balasaheb Thackeray to apprise him of the situation.Efforts are also on to submit a memorandum before the Union finance minister to work out an alternate mechanism, said a UTI officer.
Sources added that recent human resources initiatives, structured by leading HR consultants, Hewitt Associates, also has generated heated debate within the organisation. As per the new manpower strategy adopted by the mutual fund, senior employees, including 35 fund managers are now being offered performance-linked salaries. Sources said that the fund may even announce a voluntary retirement scheme in order to cut down the average age of employees.
"Even recent human resources initiatives, which included transfer of jobs, have not gone down well with the employees. Several officers who have been in back-office and administration have been instructed to do marketing assignments and several lower level staff have been redeployed," a UTI official added.
Explaining the rationale of asking officers to vacate staff quarters FQ Colman, president, HRD, UTI Mutual said that till date UTI Mutual Asset management company has been paying rentals to US-64 scheme, which owned the properties. "Since the scheme has ceased to exist and UTI Mutual as per Sebi guidelines cannot own fixed assets, the fund has decided to sell the property."
"In the last one year around 380 employees were deployed from various UTI offices across the country to UTI’s Belapur office where over 90 per cent avail of staff quarters facilities. The families of these officers will face real hardship once the accommodation facilities are withdrawn," said a UTI officer.