In the Face of Government Offer Rejection, LIC Employees Assert Their Right to Fair Compensation, Anchored by Company Prosperity and Past Wage Precedents, Amidst Ongoing Standoff
Team Clarion
NEW DELHI– The longstanding wage revision dispute between the employees’ union of the Life Insurance Corporation (LIC) and the government has reached a critical juncture as the former rejects the latter’s offer of a 14% wage hike. The revision, overdue since 2017 under a five-year agreement, has stirred tensions, with employees insisting on a minimum 25% increase.
At a recent meeting in Mumbai, involving the All India National Life Insurance Employees Federation (AINLIEF) and other LIC unions, the government proposed a 14% hike, which was met with outright rejection. Rajesh Nimbalkar, General Secretary of AINLIEF, expressed disappointment, stating that the offer failed to recognize the dedication and commitment of LIC workers, especially considering the company’s robust performance.
LIC’s financial prowess has been evident, with a notable 49% increase in net profit year-on-year during the third quarter of the ongoing fiscal year, soaring to Rs 9,444.42 crore from the previous year’s Rs 6,334.29 crore. Additionally, net premium income surged to Rs 1,17,017 crore compared to the previous year’s Rs 1,11,788 crore, while total income rose to Rs 2,12,447 crore from Rs 1,96,891 crore.
The union insists that the 2017 wage revision saw a substantial 20-25% increase, and they anticipate a similar adjustment this time around, aiming for approximately a 22% hike. Despite their pleas, the revision, due in 2022, remains unresolved.
The LIC’s recent announcement of a tax refund of Rs 21,740.77 crore for the assessment years 2013 to 2020 adds fuel to the employees’ demands, underscoring the company’s financial stability.
In August 2023, AINLIEF sought the intervention of Finance Minister Nirmala Sitharaman to address the wage revision, a plea that remains unanswered amidst the ongoing impasse.
The standoff persists as both sides remain entrenched in their positions, with employees steadfast in their demand for a substantial wage increase that reflects their contributions to LIC’s success.
