Taking a cue from the Sixth Pay Commission, which was implemented for Central government employees last year, the All India Life Insurance Employees Association has demanded a wage hike of 50%. The association has rejected the management?s offer of a 12% wage hike .
Confirming that the management has offered 12% hike for the implementation of the wage bill, TS Vijayan, chairman, Life Insurance Corporation (LIC), told FE, “There are a number of unions among the employees and hence we are now trying to consolidate them before inviting them for another round of talks. We are also trying to find out a common ground.”
Some of the reasons given by the association in favour of its demand include LIC’s premium income growth of 134.02% and the increase in the number of policies by 57.40% from the last charter for wage revision. Similarly, the productivity of the country’s largest insurer has increased 76.08% during this period. Even after the last wage revision, LIC’s expenses have come down to nearly 3% from 6%, whereas the GDP of the country grew to 7.6% during the period.
The talks held between the association and Vijayan for the fresh charter on January 5 last was inconclusive. Vijayan had then expressed his concern over the present economic scenario and falling business of the LIC. Hence, another round of meeting is to be held with D Vidyalakshmi, executive director, personnel, LIC.
The management has also assured the union members to come out with a revised housing loan and medi-claim schemes shortly.
The management has informed the union that cashless hospitalisation scheme was under consideration and the recruitment process for class III employees would be undertaken again.