Tuesday, December 8, 2009

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063

Cir.No.24/2009 7th December 2009

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

DECISIONS OF THE WORKING COMMITTEE OF AIIEA

CONTINUE RESISTANCE AGAINST PRIVATISATION

INTENSIFY STRUGGLE TO SECURE A GOOD WAGE REVISION

The Working Committee of the AIIEA met at Chennai from 1-3 December, 2009 to review the struggle against privatization and to secure a good wage revision. The working committee noted with satisfaction that the organization has achieved considerable successes in accomplishing the tasks laid by the 21st General Conference of AIIEA held at Kanpur in December 2007. The struggle against privatization succeeded in stalling so far the government’s efforts to further liberalize the insurance sector. The AIIEA succeeded in forcing open negotiations on wage revision and making progress in this direction. The absorption of the panels of Class IV employees in LIC and recruitment of nearly 5000 Assistants after a gap of over a decade was the singular achievement of the organization. The efforts spanning over a period of more than two years finally culminated in securing significant improvements in housing loan scheme in LIC. AIIEA registered growth organisationally both in LIC and in the general insurance sector. Enthused and deriving confidence from these successes, the working committee discussed in detail the way forward.

ON LIBERALISATION OF INSURANCE SECTOR

The UPA government has misunderstood the mandate of the 2009 General Election as a mandate in favour of neo-liberalism. It is with this understanding that the government totally ignoring the consequences of the global financial crisis and the accompanying recession has embarked on privatization of the public sector and aggressively pursuing policies to serve the interests of the big business and industrial houses. Though the government grudgingly admitted that the impact of the global financial crisis was less felt in India due to dominance of the public sector in banking and insurance, efforts have been undertaken to weaken these very institutions. The introduction of Insurance Laws (Amendment) Bill 2008 and LIC Act (Amendment) Bill 2009 in the parliament is a clear demonstration of the faith and belief of the government in neo-liberalism. These two bills if enacted would give greater control to the foreign capital on domestic savings and pave way for privatization of LIC and the four public sector general insurance companies. Such a situation would risk the independence of the national economy and the national politics. Therefore, the working committee decided to oppose these two bills through building up massive public opinion against the liberalization of the insurance sector. The campaign of the last two decades and the mass mobilization of the people prevented the government from privatization of LIC and the four public sector general insurance companies for the last 15 years. This is an achievement unparalleled in the history of the working class movement of resistance against neo-liberalism. The working committee was convinced that by mass mobilization of public opinion, it would be possible to push back the present offensive of the government. The working committee took confidence from the fact that today increasing number of people are taking to the path of agitation against the government policies. The efforts of the organization to build a joint movement on this question within the industry came for wide appreciation. This provides a favourable atmosphere for our struggle and therefore the insurance employees must immediately take up the task of mass mobilization of people.

ON WAGE REVISION

The working committee discussed in detail the present position on the issue of wage revision. It was noted that the tactical line decided by the Bangalore Secretariat Meeting in June 2009 has enabled the AIIEA to make progress on the issue of wage revision. The LIC management’s offer of 17.5% wage increase was secured after a magnificent strike action on September 16, 2009. The offer in the general insurance sector still stands at 15%. AIIEA units in general sector took up organisational actions to press for improvements in the offer. The AIIEA formulated its charter and has demanded consideration of the demands raised on the basis of the progress and prosperity registered by the institutions. The period between last wage revision on 1.8.2002 and 1.8.2007 has been a period of unprecedented growth and prosperity for LIC and the public sector general insurance companies. The public sector not only met the challenges of the competitive environment successfully but also established its unquestionable market leadership in every sphere of the business activity. Therefore, AIIEA has demanded consideration of the wage issue independent of the external developments. Unfortunately, the government has adopted a totally unhelpful attitude and has been brazenly interfering in the process of negotiations making collective bargaining a mockery and the managements have failed to assert their rights.

The working committee decided to press forward with the demand for improved offers with the clear understanding that the performance of the institution and its paying capacity must determine the wage level. The working committee was very critical of the efforts to attach conditionalities to the wage revision and made it abundantly clear that this is unacceptable to the organization. The working committee welcomed the initiative of the organization in building a joint platform on the issue of wage revision. The working committee decided to intensify the agitation to secure a good wage revision at an early date.

OTHER ISSUES

The working committee discussed various other issues relating to the industry. It was decided to demand recruitment to the core cadres in the general insurance industry. The Secretariat was authorized to find a solution to the problems of the temporary employees in LIC in consultation with other unions and in discussions with LIC.

The new IT and business initiatives undertaken by the LIC too came up for discussion. The LIC is upgrading the technology to meet the servicing needs of increasing number of policies and has taken certain business initiatives like Metro Area Servicing Hubs. The working committee discussed these initiative and the assurances given by LIC that the branch staff strength would not be reduced, new jobs would be created to offer better services to the policyholders and the process of further recruitment would continue. The working committee appreciated the necessity of these new initiatives in the present challenging situation and decided not to oppose upgradation of technology and MASH. At the same time the working committee cautioned the employees to maintain continuous vigil to protect the existing jobs and ensure future recruitment.

ORGANISATION

The working committee noted with satisfaction the tremendous efforts made in the general insurance sector to consolidate the organization. These efforts have succeeded in establishing the AIIEA’s leadership in struggle and have also resulted in many employees joining the AIIEA from the other unions. The working committee expressed happiness over the fact that in LIC, more than 90 percent of the new recruits joined the AIIEA. The working committee decided to continue efforts without any let up for further consolidation of the organization both numerically and ideologically with a special emphasis on the general insurance sector.

After a threadbare discussion on all the above issues, the working committee decided on the following programme:

1. Mass mobilization of public opinion against the two insurance bills through leafleting, hand bills, seminars, conventions, human chains, candle light processions and various other innovative methods;

2. Meeting the Members of Parliament and those on the standing committee on finance to seek their support to our struggle;

3. Post Card campaign: - 1000 post cards from the policyholders from each branch addressed to the Prime Minister for withdrawal of the two bills;

4. A national convention on this issue in consultation with other unions;

5. One Day strike in last week of December or first week of January in consultation with other unions demanding a good wage revision.

The working committee expressed confidence that the twin task of thwarting the privatization of insurance industry and securing a good wage revision without any conditionality would be achieved by the organization. Therefore, the working committee asked the insurance employees to implement the above programmes enthusiastically with a conviction that we shall achieve success through these struggles.

Resolutions

Left parties have been in the forefront of the struggle against neo-liberal policies of the government. It is for this reason that the bastion of the left has been under attack for the last few years. The decision of the Central Government to send a Central team to West Bengal bypassing the state government is an assault on the federal structure mandated by the Constitution. The working committee took serious note of the developments in West Bengal where all efforts are being made to destabilize the democratically elected government. The elements hostile to the Left Front ranging from the extreme right to the extreme left have ganged up to let loose a reign of terror and violence. This violence has resulted in loss of hundreds of innocent lives. The working committee demanded that the Centre must provide all assistance to the State government to put an end to the violence. The State government must also take immediate measures to isolate the extremist elements by taking up the issues of life and living of the tribals and people in under-developed areas.

The working committee also expressed solidarity with the Bhopal Gas victims. December 3, 2009 was observed as the All India Safety Day to mark the 25th anniversary of the great Bhopal Gas tragedy. This tragedy was the result of sheer negligence by the US multinational Union Carbide. The tragedy consumed thousands of lives and decapacitated thousands more. The working committee deplored the inaction of the Union government to bring the culprits to books and give proper compensation and rehabilitation to the victims. The Working Committee while expressing solidarity with the victims demanded immediate justice for them.

Comradely yours,

General Secretary.

Tuesday, November 24, 2009

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063

Cir.No.23/2009 24th November 2009

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

We reproduce herein below the joint letter of the Unions/Associations submitted to the Chairman, LICI, this morning at 11.30 am in a joint delegation. Com. S.A. Nanal, Joint Secretary, WZIEA was part of the delegation representing AIIEA.

Comradely yours,

__________________________________________________________________ General Secretary.

16th November 2009

Chairman,

L.I.C. of India, Central Office,

Mumbai.

Dear Sir,

WAGE REVISION IN LIC

In the discussions convened on November 3, 2009, you made an offer of 17.5 percent wage rise on the wage bill as at 31st August 2007. Responding to your offer, the Unions representing all classes of employees made it clear that this offer coming nearly five months after the last round of discussions has disappointed the employees and officers. This offer neither reflects the prosperity of LIC nor meets the expectations of the employees and officers. The representatives of the unions, therefore, demanded re-commencement of discussions at an early date with meaningful offers that could lead to an early and satisfactory settlement.

The wage revision is pending since 1.8.2007. The Unions framed and submitted their charters for upward revision of wages in the background of the tremendous growth recorded by the Corporation in the preceding five years. The total premium income increased from Rs.48963 Cr. in 2001-02 to Rs.127782 Cr. in 2006-07. The success story continues. The total premium income for the year 2008-09 reached Rs.1,57,186 crores. During this period the number of individual policies rose to 26 crores from 12.58 crores. The growth of LIC during the first half of 2009-10 had been commendable viewed in the context of global recession which did not leave India unaffected. The total investments of LIC in the Indian economy stand at a massive Rs.10 lakh crores. What is more that this huge increase in productivity was achieved at a declining wage ratio as a percentage of total premium.

You will agree that the brilliant performances of LIC year after year in every aspect of its functioning have naturally made the employees expect a good wage revision in tune with the performance of the LIC. But the progress made after over two years of wage revision having fallen due is disappointing. The aspirations of the employees are totally justified as they are based on the performance of LIC to which all classes of employees have contributed in such great measure. Therefore, the LIC employees and officers have been looking forward to an improved offer which can form the basis for meaningful negotiations on the issue.

Hence, we request you to take immediate steps for calling the unions/associations at an early date with an improved offer leading to a satisfactory settlement so that the employees and officers respond to the challenges before LIC with continued commitment to advance the interests of this great institution and its policyholders.

Thanking You,

Yours faithfully,

R. Jayaprakash K Venu Gopal Satish N. Jaokar V.K. Sharma

NFIFWI AIIEA AILIEA AINLIEF (INTUC)

Sunil Shinde Atul Deshpande Ganesh Kamath

BVKS NOIW NOINO

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063

Cir.No.22/2009 21st November 2009

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

Joint appeal of the unions

We reproduce hereinbelow a joint appeal released by the unions to the employees and officers calling upon them to observe demonstrations on the 27th November 2009 and 11th December 2009 and to be in readiness for a strike action in the last week of December 2009, if the situations so warrants.

Federation of LIC Class I Officers’ Associations, were strong partners in our earlier strike action on 16th September 2009. They could not sign this joint appeal. We appealed to them to join the further struggles on wage issue and we are confident that they would also be with us in the struggle to achieve a good wage revision for the LIC employees and Officers.

A joint letter signed by the unions will be submitted to the Chairman on the 24th of November 2009 and we shall circulate it after the submission.

Comradely yours,

General Secretary.

14th November 2009

To all the officers and employees of LIC

Dear Friends,

It is more than two years since the wage revision in LIC fell due. LIC had a phenomenal growth since the last wage revision. In LIC at the time of last wage revision, the wage cost accounted for 6.02 percent of the total premium income. This cost declined to 3.19 percent by the time the present wage revision fell due. The brilliant repeat performances of LIC year after year in every aspect of its functioning has naturally made the employees and officers expect a good wage revision in tune with the performance of the LIC. But no worthwhile efforts are made by the LIC management to seriously engage the unions in negotiations to settle the genuine demands of the employees and officers.

The government officials are arbitrarily intervening even in the areas where LIC management could take decisions on its own. It is very disappointing that LIC, the biggest financial institution in the country, with more than Rs.10 lakh crores of assets, has failed so far to assert its right to settle wage revision to the employees and officers on the basis of its performance and financial strength. The genuine aspirations of the officers and employees who are performing for the growth of LIC are being trampled in the process.

In the last wage discussion held on 3rd November 2009, the LIC management offered a wage increase of 17.5 percent. This offer was much below the aspirations of the officers and employees and hence the unions/associations did not accept this offer. The LIC officers and employees deserve a much better deal.

It is in this background that we call upon all the officers and employees in LIC across the country to massively participate in the demonstrations on 27th November 2009 and 11th December 2009 demanding the LIC management and the government that there should be immediate discussions with improved offers leading to a satisfactory wage revision.

We also call upon the employees and officers to be in readiness for a One Day Strike in the last week of December 2009, in case the management does not come out with improved offers.

With greetings,

Yours friendly,

R. Jayaprakash K Venu Gopal Satish N. Jaokar V.K. Sharma

NFIFWI AIIEA AILIEA AINLIEF (INTUC)

Sunil Shinde Atul Deshpande Ganesh Kamath

BVKS NOIW NOINO

Saturday, November 7, 2009

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063

Cir.No.21/2009 6th November 2009

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

JOINT MEETING OF THE UNIONS

A meeting of all unions was held in the evening of 3rd November 2009 to develop a common understanding and programme on the issue of wage revision, liberalization of insurance sector and on absorption of temporary employees. NFIFWI, NOINO and all the unions in Class III and IV attended the meeting. Federation of Class I Officers’ Associations could not attend the meeting but assured AIIEA that they are also committed for a struggle on wage revision.

Broadly, an understanding was reached that joint letters should be addressed to the Chairman, LIC and Finance Minister demanding early settlement of wage revision keeping in view the aspirations of employees and performance of LIC. Majority of the unions also agreed for demonstrations on 27th November and 11th December with a perspective of one day strike in December end if no progress is made.

The Insurance Laws (Amendment) Bill 2008, LIC Act (Amendment) Bill 2009, the Swaroop Committee recommendations on Agents Commission and certain provisions in the draft Direct Tax Code would destabilize the public sector insurance industry. These issues were placed before the joint meeting of the unions. It was decided that forming a common understanding with the Agents Associations, a public campaign must be undertaken. This program would involve meeting the Members of Parliament (especially those in the Standing Committee on Finance) and a campaign among the public and policyholders. It was also decided to hold a national convention in New Delhi in December to mobilize support to our opposition to the liberalization of insurance sector. Further details on the campaign programme are being worked out.

On the issue of temporary employees, a discussion was held where the unions also agreed that a solution should be found out urgently and agreed to exchange views further to have a common approach.

Comradely yours,

General Secretary.

ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION

LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063

Cir.No.20/2009 6th November 2009

To all the Zonal/Divisional/State/Regional Units:

Dear Comrades,

Discussions with LIC on wage and other issues

The strike action on 16th September 2009 finally forced the government and the LIC management to call the unions for a further discussion on the wage issue.

The information sharing session convened by LIC commenced as scheduled on 3rd November at Central Office with a joint session. In this meeting LIC was represented by the Chairman, Managing Directors, Executive Director (P) and other officials. The AIIEA was represented by Coms Amanulla Khan, President, K.Venu Gopal, General Secretary and V.Ramesh, Joint Secretary.

The Chairman in his address at the joint session detailed the growth of LIC during the first half of the year. The total first year premium income underwritten by LIC reached Rs.25,814 crores under 1.40 crore policies with a growth rate of 35.21% in premium and 12.75% in policies. He pointed out that major contributors for the increase in the market share of LIC were the Individual Single Premium Policies and Group Business. He shared a concern that the margin for management expenses in these areas is minimal. He also pointed out that the period during January and February 2010 poses the challenge of meeting and overtaking the collections under Jeevan Astha during the same period last year. He also pointed out that the IRDA instructions regarding cap on the charges under ULIP products may change the business dynamics regarding ULIP policies which used to occupy a major space in earlier years. He also pointed out to the release of a new product Jeevan Nischay for our existing customers.

The Chairman pointed out that certain initiatives like MASH are needed to created space for individual-customer-centric initiatives like Help Desk, CRE and Customer Contact Program etc. On the recruitment front, he added that the new recruits in Assistant cadre joined the respective offices in the month of April 2009. 400 new AAOs will be joining LIC in the month of December and nearly 5000 new development officers are going to be recruited. He informed the session that LIC won accolades in different spheres of activities including Reader’s Digest Trusted Brand Award (Platinum) 2009, IT user 2008 NASSCOM Award, NDTV Business Leadership Award. At the end of the speech the Chairman made an improved offer on wage revision from 15% to 17.5% wage increase over the wage Bill as on 1.8.2007.

Responding to the speech of the Chairman, the General Secretary, AIIEA said that LIC’s growth rate of over 35% in premium helped the whole life insurance industry to register a positive growth while the private insurance companies were in the negative growth mode. On the initiatives being proposed by the Central Office, he said that AIIEA is not against the initiatives to improve the policyholders’ servicing but at the same time the Oragnisation has to have a proper perspective in evaluating the processes like MASH where the branches are to be supported in settling the Survival Benefits.

While responding to the offer of 17.5% on wage revision, General Secretary, AIIEA said that the offer is not acceptable as it falls much below the aspirations of the employees and does not reflect the performance levels of the LIC. He demanded the management to come out with an improved offer to facilitate proper negotiations. He also said that wage revision should not be linked to any conditionality and reiterated that New Pension Scheme for the new recruits is not acceptable to AIIEA.

General Secretary, AIIEA expressed concern that the promised improvements in housing loan including the second loan are inordinately delayed and the employees are becoming restive on this issue. He said that if there is any further delay on this issue, employees in many centres would face great difficulty in acquiring even a small flat due to the expected cost escalation. He also said that while the recruitment in Assistants cadre has been taken up, the recruitment of Class IV employees along with the solution to the problem of temporary employees should be taken up without much delay. He highlighted the plight of the many temporary employees with families to support eagerly waiting for a favourable settlement of their issue.

The AIIEA also demanded improvements in the pension with regard to 100% neutralization of the pre 1-8-1997 retirees and the upgradation of pension of pre 1-8-2007 retirees.

The other unions too expressed identical views on the issues of wage revision, housing loan and resolution to the problem of the temporary employees.

Individual Session

In the evening the AIIEA delegation consisting of Coms. Amanulla Khan, K. Venu Gopal, V. Ramesh and H. I. Bhatt participated in the individual session of the discussions.

The delegation reiterated AIIEA’s demand for increase in the offer of 17.5% in the background of the performance of LIC which forms the basis for the aspirations of the employees. Officials informed that they would go back to the government along with the response of the Unions. On the management’s conditionalities like New Pension Scheme, withdrawal of certain leave benefits, Mobility, outsourcing etc., AIIEA reiterated that these conditionalities are not acceptable to AIIEA and that the wage revision should be without conditions.

On the issue of MASH, AIIEA informed that we would discuss further and inform the stand of the organisation. Here the officials assured that MASH would only supplement the efforts of the branches in meeting the huge volumes of SB payments and would not take away the work altogether. They informed that the urgency is in the background of large volumes of Bima Gold policies which are coming up for S.B payments in December 2009 onwards in addition to the S.B. payments under other policies. They gave the examples of branches in Howrah division in this context where the volumes are very huge and the branches may not be able to do it on their own without support. Officials also confirmed that the staff strength of the branches will not alter since many more functions are being added to the branches for customer care.

On the FEAP upgradation, the officials informed that these are necessary since the present FEAP programmes have almost become unrecognisable due to many versions and patches being loaded for the last 14 years. So, the current exercise is to make a fresh programme which would include certain features like facility to switching between menus (presently the cashiers for example, have to exit the menu of individual premium and then attend to ULIP premium and again exit the menu to attend to the individual premiums) and also providing for a better screen instead of the current black and white screen. On the issue of centralization of server to divisional offices, they informed that the branches would be provided with a server based on EDMS data and the programmers would have to continue to work at the branches supporting these servers. The officials assured that there would not be any fears of redundancy of Programmers in branches.

Actuarial Allowance:

We raised the issue of payment of allowance for actuarial examinations. The officials informed that a new scheme is framed and the Chairman would be issuing instructions under the scheme. A concept of core group at Central Office and Zonal Offices is being introduced in the scheme, wherein the posting to the core group would be by a method of selection. The officials also informed that that the employees who clear actuarial examinations would get the allowance wherever they are posted, that is whether they are posted in CO, ZO, DO or a Branch office without any discrimination. Thus a long standing demand of AIIEA for payment of allowance irrespective of place of work is now conceded.

AIIEA meets the Chairman and the Managing Director

The President and General Secretary of AIIEA met the Chairman separately and impressed upon him the need to immediately settle the wage revision keeping in view the aspirations of employees and performance of the institution. We pointed out that this was very important for the institution to meet the challenges confronting our industry. We also wanted the Chairman to intervene and settle the issue of improvements in housing loan.

The President and General Secretary also met Shri A.K.Dasgupta, the Managing Director. The AIIEA regretted the inordinate delay in notifying the promised improvements in the Housing Loan. The M.D assured that all steps are being taken to ensure that the improved housing loan scheme is put into place early.

These, in brief, are the details of the discussions AIIEA had with the LIC management on the 3rd November 2009. We will communicate the details of the individual issues discussed in separate letters to the respective zonal units.

Comradely yours,

General Secretary.