LIC officers strike over wage issue

The Federation of LIC class-I officers' Association has gone on a nation-wide strike on Thursday to protest against non-acceptance of their demands on the wage revision by the management of the Life Insurance Corporation.

Some officials had also gone on a hunger strike on Wednesday in Hyderabad and were forced to end it on police intervention.

"Except Mumbai, the strike has been successful in the rest of the country," claimed R Gunasagar, president of the Federation.

Prominent Congress leader Oscar Fernades is the chairman of the federation. Gunasagar said while the government is insisting 17% rise in the wage, the Federation is demanding the same hike as sixth pay commission.

"Our own management is even refusing to send our demands to the ministry of finance and is insisting that we should accept 17% hike like the banking industry did, That is not clearly acceptable to us," he said.

Gunanasagar said LIC only incurred 2.33% as administrative expenses and pays currently pay Rs 1000 crore as dividend to the government on its Rs five crore investment in 1956.

Gunansagar said the the wage package of employees of the LIC cannot be compared with that of the banking industry as latter has been given pension benifits over the 17% salary hike.

GENERAL INSURERS’ [PUBLIC SECTOR] ASSOCIATION OF INDIA

To,

All check-off Qualified Unions/ Associations of Member Companies

Re : Wage Revision

Please refer to the discussions we had with you in the 5th round held at Kolkata on 22nd December, 2009, at which, on behalf of our Member Companies, we had floated an improved offer of overall 17.5% (including non-core items) revision in the wages with effect from 01.08.2007, (subject to the approval of the Government) along with an organizational agenda aimed at improving the productivity to the requisite level necessary to absorb the impact of the Wage Revision having regard to the statutory limits on the management expenses.

We had requested you to appreciate the offer as also the financial constraints despite which it has been made to you with a view to motivate the employees for contributing further in improving the productivity of the Companies and sought your consent to the same for our approaching the Government for approval thereof and issuance of requisite Notification. While appreciating the improved offer, you had, nevertheless, made certain observations, inter-alia, seeking to explore the possibilities of further improvements, if at all.

Your observations were submitted by us to the Governing Board of GIPSA in its Meeting held on 29th January, 2010. After threadbare deliberations, particularly, looking to the financials of the Member Companies, the Board did not find it possible to further improve the offer made before you in the 5th round as indicated above and desired us to reiterate the same to you.

We would request you to kindly appreciate that this is the maximum the Companies could afford with the given financials and come forward with your consent to the same to enable us to proceed further in the matter.

JOINT ACTION COMMITTEE

Unions/Associations decide on Joint ActionTo demand immediate resumption of wage talks with improved offersTo break the silence of mgt & to say No to mgt agendaThe management has been keeping silence since the last round of wage talks held at Kolkata on Dec 22 when all the Unions/Associations rejected the offer of 17.5% and demanded improved offers delinking management agenda. As per the joint call of the Unions /Associations, demonstrations were held in front of HOs of Cos & in RO centres on Jan 20, 2010 to press for resumption of wage talks with improved offers. Joint Memoranda were submitted to CMDs/GMs of the Cos.A wider meeting of representatives of the Unions/Associations (checkoff qualified & non-checkoff qualified) was held at Chennai on Jan 20, 2010. It was decided to spread the joint movement across the country with the following immediate programmes. Jan 29, 2010 (Friday) -- Joint Demonstrations in all centresFeb 9, 2010 (Tuesday) -- Badge Wearing & Submission of Memorandum to Officer-in-chargeFeb 23, 2010 (Tuesday)-- Dharna in big centresFurther programmes will be decided in the next joint meeting.