The Hindu Business Line : LIC employees' demand

LIC employees, who went on a nationwide strike on March 31, have asked the Finance Minister, Mr P. Chidambaram, to grant them leeway for further negotiations with their management.

The Finance Minister informed the delegation that the Government could not intervene in the matter and urged both LIC and the unions to settle the issue early and focus on the challenges facing the industry, a news release issued by the unions said.

As per the demands, the unions will not accept a 13.3 per cent hike in salary, akin to what the banking sector receives.

Mr Sharad Nandal, General Secretary, Mumbai Division, All India Insurance Employees' Association, said, "As a successful PSU, LIC should not have the same wage standards as the banking sector.

"Besides, the six per cent productivity-linked bonus is based on the parameters of sum assured, total premium income, number of policies, income from estate and early claims received. Using these parameters we will not get bonus for the year 2004."

Union leaders agreed that bonus should be based on productivity and profitability of the industry.

However, a factor like `claims' is irrelevant to their bonus, they said.

`Income from estates' they, say has several legal tangles attached.

Outsourcing of jobs such as cleaning and security is another bone of contention with the management.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
The RBI Governor's policy options

RBI, Finance Ministry to discuss market access of loans with States

Bond traders focussed on year-end valuations

Bollywood breaks financing tradition — Study finds sharp rise in private equity, dip in institutional lending

Explosive growth in micro-loan disbursements

RBI to raise Rs 2,500 crore under MSS

LIC employees' demand