The Hindu : Business : LIC proposes two-part wage hike

Online edition of India's National Newspaper
Saturday, Dec 11, 2004

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LIC proposes two-part wage hike

By Our Special Correspondent

CHENNAI, DEC. 10. The Life Insurance Corporation of India has proposed a two-part wage hike for its employees. It will involve an across-the-board increase of eleven 11 cent in the total wage bill as on August 1, 2002. It will also include a productivity-linked lumpsum incentive (PLLI) on the performance of LIC. The PLLI component will cover areas such as new policies, first-year premium, total premium income, early claim ratio and augmentation of income from real estate.

The Chairman of LIC, R. N. Bhardwaj, made these proposals to the unions at a meeting in Mumbai today.

According to the offer, the average wage increase for a Class I employee will be Rs. 36,306 a year when compared to the rise in last wage revision of Rs. 23,015 a year (effected in August 1997). The average annual hike for Class II employees will be Rs. 18,561 (Rs. 11,766). For Class III and IV, the average annual increase will be Rs. 20,383 (Rs. 12,478).

At the meeting, the Chairman also reportedly ruled out any voluntary retirement scheme (VRS).

The unions, sources said, were not enthused by the wage hike proposal offered by the management.

At a time when they were expecting to get more than what the bank employees had been given, the offer by the LIC management had disappointed them, these sources added. This time around, the management has sought to introduce a `mobility element' and `outsourcing rider' into the wage agreement.

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