LIC union demands reinstatement of terminated staff before IPO
All India National Life Insurance Employees Federation complains to Sebi against the proposed IPO of LIC
image for illustrative purpose
Even as LIC is gearing up to get listed at the stock exchange, the trade union has put a condition of reinstatement of all the 55 temporarily terminated before the listing. LIC IPO, through which the Government is likely to shed 10 per cent of its stake in the Corporation, has already been given a green nod by the union finance minister on the very Budget day on February 1, 2021, and was likely to mop up over Rs 1,00,000 crore. The valuation process for the Corporation has already kick started.
Husain Dalwai, president of All India National Life Insurance Employees Federation and ex MP, has lodged a complaint with Sebi against the proposed IPO of LIC. Dalwai has demanded Sebi that no permission should be granted to LIC for the same as LIC has not come out with the clean hand with reference to the mandatory disclosure of facts.
Temporary terminated workmen of LIC have been fighting in Supreme Court since 1991 from CGIT Court to Apex Court of India for the permanent absorption in the services of LIC. Under civil appeal no 6956/2009 of Union, the Supreme Court has passed the verdict on March 18, 2021, and ordered LIC to absorb all concerned workmen in permanent services with back wages and post-retirement benefits.
The apex court had granted the relief in the review petition by reducing the back wages from 100 per cent to 50 per cent. Reliefs were granted in the said order were absorption of workmen as a permanent status with consequential benefits and along with post-retirement benefits. Interestingly, LIC had filed review and curative petition and both were dismissed. Till now, LIC is reluctant to execute the order of Supreme Court and concerned workmen who have obtained the age of 50 to 55 are still waiting for justice.
The affected workmen have fought legal battle under the leadership of Rajesh Nimbalkar and BNP Shrivastav with great ferocity and fortitude, but LIC is keeping aside their rightful dues and making them to struggle to put the food on the table. In the meeting with said temporary terminated workmen in Tilak Bhavan of Maharashtra State Congress committee has warned the nationwide protest against the anti-labour attitude of LIC Management.
Husain Dalwai also stated that this complaint is a part to draw the attention of Prime Minister Narendra Modi and Finance Minister Nirmala Sitaraman for their kind intervention in the interest of poor workmen. At present LIC has got an asset value of Rs 3196214cr and Life Fund is around Rs 3114000 cr and surplus income is of Rs 53954.86 cr out of which 5 per cent of which has been given to the Centre in the form of dividend. Similarly, first year premium from the LIC policyholders is around Rs 379000 cr and market share value is Rs 68.74 per cent in insurance sector and around Rs 28 cr are the policyholders and 11 crore are the group policyholders and Rs 240000 cr have been invested in government securities.
"Even though having huge financial power what exactly made LIC to collect funds from public and have suppressed true facts and not implemented the SC judgment and thereby committed contempt of court," says Rajesh Nimbalkar, general secretary, All India National Life Insurance Employees Federation (INTUC).
In the meeting with temporary terminated workmen in Tilak Bhavan of Maharashtra State Congress Committee has warned the nationwide protest against the anti-labour attitude of LIC Management.
