
In a surprising turn of events, the employee unions of Life Insurance Corporation of India (LIC) have firmly rejected the company’s offer of a 14 percent salary hike. According to the unions, this offer fails to recognize the dedication and commitment demonstrated by LIC’s workforce towards the institution.
Unions are hoping for atleast a 30 per cent hike in wages as well as higher value of Sodexo meal coupons given to employees, apart from revision in the housing cadre loan. LIC has over one lakh employees on its payrolls.
The state-owned life insurer had convened a meeting with All India National Life Insurance Employees Federation and other unions to discuss the proposed raise. However, the unions unanimously declined the offer, stating that it does not reflect the employees’ unwavering loyalty towards LIC.
Rajesh Nimbalkar, the General Secretary of All India National Life Insurance Employees Federation, expressed disappointment on behalf of the employees, especially considering LIC’s impressive performance across various indicators. In the third quarter of the current financial year, LIC achieved a remarkable 49 percent year-on-year growth in net profit, reaching Rs 9,444.42 crore. Additionally, the Value of New Business (VNB) margin, a key profitability measure, stood at an impressive 20.01 percent, indicating the company’s strong financial standing.
Despite the corporation’s significant success, the employees’ remuneration and welfare expenses experienced a substantial increase of nearly 71 percent in the quarter under review. This further highlights the employees’ dedication and their contribution to LIC’s growth.
It is worth noting that LIC operates on a five-year wage revision policy. The last salary hike was granted to employees in 2017, and the next revision was expected in 2022. Comparing the previous raise, which ranged between 20-25 percent, Nimbalkar expressed the hope that this time around, the employees would receive a similar increase of approximately 22 percent.
The next meeting between the employee unions and LIC is scheduled to take place in Mumbai, although the exact date is yet to be determined. It remains to be seen whether LIC will reconsider its offer in light of the employees’ rejection and the significant contributions they have made to the company’s success.
Is anyone kidding. R u gonna dump a Govt company to the boots