The Hindu : Business : LIC proposes ‘minimal’ wage revision

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Wednesday, Jan 07, 2009
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LIC proposes ‘minimal’ wage revision

Special Correspondent

Plans to introduce new incentive scheme at branch level

‘Total premium income is showing signs of strain compared to previous years.’

CHENNAI: Even as the Government announced its decision to raise the capital of Life Insurance Corporation (LIC) to Rs. 100 crore and increase the FDI (foreign direct investment) limit in the insurance sector to 49 per cent, the employees of LIC are upset over the corporation’s proposal to withdraw several concessions while offering only a ‘minimal’ wage revision of 12 per cent. In a meeting with the union leaders in Mumbai on Monday, Chairman T. S. Vijayan, sketched out the existing circumstances, caused by factors such as global meltdown, stock market crisis and economic slowdown. He went on to narrate how LIC, too, was impacted by the global financial meltdown. The Chairman informed the union leaders that LIC had, in fact, witnessed a negative growth in new premium up to December 2008. Even total premium income was showing signs of strain compared to the previous years, he said.

During the course of the interaction with the union leaders, the Chairman also proposed the replacement of the existing Productivity Linked Lumpsum Incentive (PLLI) with a new scheme. The current scheme is based on the performance of the corporation as a whole in identified areas. The new incentive scheme would be linked to the performance at branch level. The Chairman also brought the mobility issue to the fore yet again. “It is important to arrive at clear cut guidelines on mobility,” he told them. “To the extent possible, employees’ preferences may be kept in mind,” he assured them. The Chairman also informed them of the decision of the management to outsource non-core jobs such as cleaning and security. Even in the past, the mobility and outsourcing issues have met with stiff resistance from the unions.

The unions are already up in arms against the latest wage offer by the management. They are upset at the move to withdraw the late coming and early going facility and 10-minute grace period in attendance. Further, the move to withdraw the half-day casual leave and additional casual leave has also come under flak.

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