Wage Revision Notification signed by Jt.Secy (I&P), MOF, Govt. Of India

Source: http://allcgnews.blogspot.com/2010/10/lic-wage-revision-agreement-signed.html

LIC wage revision agreement signed. Gazettee notification soon.

6:41 PM LIC              October, 9,2010

    It is learnt from reliable source that the notification for LIC wage revision has been signed by Jt. Secy (I & P), MoF, Govt of India on 8th October 2010 and sent to press for printing. More details are awaited and will be uploaded as soon as available

Source - Paycommissionupdate

My question to the honorable Jt. Secy (I &P), MOF, Govt. of India

Had you considered the Supreme Court’s judgment dated 3^rd December, 2007; before signing the aforesaid notification?

An excerpt from this judgement :

SC - "Proviso of Para 3 is struck sown ultra vires"

Supreme Court Decision - GIC

 K. S. Raina.                                                                                       -      ------------Petitioner.

                        Versus

Union of India and others.                                                                         --------Respondents.

Coram:

The Hon’ble Mr. Justice Rajiv Sharma, Judge.

Whether approved for reporting?*                                    Yes.

For the Petitioner:                                                  Ms. Ranjana Parmar, Advocate.

For Respondent No. 1:                                         Ms. Shilpa Sood,

Central Government Counsel.

For Respondents No. 2 & 3:                                Mr. Ashwani Sharma, Advocate.

Rajiv Sharma, J.

(Excerpt)

In the present case the petitioner was in fact in employment as on 1^st August 2002, the date from which the Notification (Annexure P-4) dated 21^st December 2005 has been made applicable.

Consequently, in view of the observations made above, send proviso of Para 3 of the Notification dated 21^st December 2005 is struck sown being ultra vires to the extent it deprives the petitioner and other similarly situated persons to get the benefit of revised pay scale with effect from 1^st August 2002 after applying the principle of severability.

According, the petition is allowed. The petitioner is held entitled to get the revised pay scale corresponding to his post he was occupying as on 1^st August 2002 till 15^th March 2004. The respondents are directed to work out the arrears etc. within six weeks from today.

December 3, 2007                                                                                      (Rajiv Sharma), J.

Isn’t the concerned official who signed the notification, liable for Contempt of Court proceedings against him?

Aren’t the members of the Managing Board of Directors, including the Chairman of LIC of India; too, liable for Contempt of Court proceedings against them?

                                                                                                                            Priya

Completing 5 years of my crusade against LIC's injustice, today!

Dear friends,
                     I filed an RTI application on the 11th of February, 2012 for getting information about the  unjust and illegal repudiation of arrears to the resigning employees during implementation of the Wage Revision Charters of LIC of India. Needless to say, this was done as I didn't get any reply from LIC, to my representations for payment of arrears and difference in retirement benefits due to me, for 8 long months! Thus I started a crusade for getting replies to all questions plaguing my mind and indeed every other resigning employee's mind; as to the reasons for repudiation.
                     After first and second appeals and endless correspondence, all that I could manage to get from LIC was that: This injustice was going on since 1st August, 1997, (exactly 2 decades ago), names of a handful of employees (not the entire list as asked for), it didn't have the Minutes of meetings for the same (rather didn't want to give them to me, for obvious reasons), didn't have reason for the repudiation, on its records (thus admitting that its decision was arbitrary) and that it didn't have all the information asked for by me (speaking volumes about the ethics, accounting and record-keeping practices of LIC)! So much for transparency and honesty, by a distinguished Public Authority!
                     Till date, the details of my RTI application and the subsequent 1st and 2nd Appeals have not been uploaded by LIC on its website, as is mandated for Public Authorities.
                      I have compiled a list of ex-employees affected by repudiation, but there are many more names that still remain missing from my list and I hope that the concerned ex-employees will inform me at the earliest so that I can take my crusade to the next level.
                      In spite of contacting all the major dailies and several publications, I haven't received any support from them, which makes me wonder about their unusual reticence in highlighting this important issue.
                      If a reputed Public Authority like LIC of India can heap such injustice on its employees who have sincerely worked for its progress, is there any guarantee that it wouldn't do the same to its esteemed and invaluable policy-holders, in the long run? It has also deprived the Central Exchequer of the income-tax payments which would've been deducted from these arrears' payments, had they been made to the resigning employees!
                      In spite of the Supreme Court's judgments favoring the employees, LIC continues incorporation of the Clause 3 1 B which has been declared ultra-vires by the Supreme Court; in each Charter of wage revision; and repudiates arrears' payments with impunity. Thus it defies the laws of the land with utter contempt. Should we allow LIC to get away with it or bring it to book at the earliest?
                      Think about it!
                      Nevertheless, I pledge to keep the mast flying high till the end result is achieved, in the form of payment of dues to all the aggrieved ex-employees. Come, join me in my crusade against injustice.
                       SATYAMEVA JAYATE! THE TRUTH ALWAYS PREVAILS!
                                                                                                                                   Priya

Negotiations by Class I Officers' Associations - 1997

Source: http://www.business-standard.com/article/specials/lic-officers-demand-bank-grade-pay-packet-197100401007_1.html

Business Standard

Lic Officers Demand Bank-Grade Pay Packet

BSCAL  October 4, 1997 Last Updated at 00:00 IST

The Life Insurance Corporation Class I Officers Association is firming up its demands to be presented before the management for the forthcoming round of wage negotiations. A few days ago, office bearers of the association from all over the country met in Mumbai to finalise their agenda. Speaking to Business Standard, O P Vashisth, general secretary, Federation of LIC Class I Officers Association, said the final charter will be finalised shortly and presented to the management by the end of this month.
The LIC Officers Associations have decided to oppose the central governments attempts to privatise the insurance industry. They are also unhappy that the management of the corporation has not brought the salaries of the insurance officials at par with that of bank officers. They are also demanding rationalisation of the pay structure within the organisation. Vashisth said the association is likely to adopt a tough stance, especially on the issue of parity with bank officers.
He said that on August 17 last, the National Confederation of General Insurance Officers Associations (NCGIOA) and the Federation of L I C Class I Officers Association had decided to form a common front for negotiating on issues pertaining to privatisation and pay revision. This decision has been taken keeping in view the pay revision which fell due on August 1 this year. It was then decided that the two associations would submit a similar if not a common charter of demands to the management of LIC and General Insurance Corporation.
According to an official with the association, efforts are on to evolve a common charter of demands. The pact had been signed following a meeting between the associations. The officers expressed concern for protecting the policy holders interest and the flow of funds to the infrastructure sector.
He said it was unfortunate that the government has not yet implemented the proposal that gave the management of LIC the right to negotiate with the officers and unions directly.
It might be recalled that the finance minister while presenting the budget for 1997-98 had come up with this proposal.
**********************************************************************************

Kindly refer to my blog dated 09.04.2016 titled

The origin of repudiation of arrears in LIC of India

The service rules apply similarly to the resigning Ex-Chairman and other resigning ex-employees.

               If the service rules apply similarly to the resigning Ex-Chairman and other resigning ex-employees, why should the Ex-Chairman expect preferential treatment to get his retirement dues? Kindly refer to the report from the Economic Times, as reproduced below.
               If the Government considers his resignation as VRS,  all the resigning ex-employees' resignations must also be treated as VRS and their arrears and retirement dues must be released by LIC of India, immediately. No two ways about it!
                                                                                                                                   Priya
**************************************************************************************************************
Source: http://economictimes.indiatimes.com/news/lic-chairman-sk-roy-asks-government-to-treat-resignation-under-vrs-category/articleshow/53565351.cms

LIC chairman SK Roy asks government to treat resignation under VRS category

By Dheeraj Tiwari, ET Bureau | Updated: Aug 06, 2016, 04.10 PM IST

NEW DELHI: Life Insurance Corporation of India chairman SK Roy, who resigned unexpectedly, has asked the government to relieve him under the voluntary retirement scheme after realising that he stands to lose benefits including pension and other emoluments if he quits.

Roy stepped down as chairman of state-owned LIC, the country's largest insurance company, in June, two years before the end of his term. It was widely reported that his decision was due to "personal reasons," although  no statement was issued by Roy, LIC, or the government.

A senior official confirmed that Roy had written to the government seeking to leave the company under VRS.

The official said it may be the case that he resigned without realising that he may lose all those years of service that he has put in.

"Now the resignation may be considered under VRS," the official said, adding that it was rare for a government employee to resign instead of seeking voluntary retirement. A detailed email sent to LIC did not elicit an immediate response. Roy did not respond to text messages or phone calls.

Roy is expected to serve for another three months unless a replacement is appointed and he is allowed to leave earlier. "The Appointments Committee of the Cabinet will soon take a call on his resignation," the official said.

Under the rules, an employee can opt for VRS after completing 20 years of qualifying service and has to give notice of not less than 90 days, in writing, to the appointing authority.

A senior LIC executive also confirmed the development. He said the issue is over the interpretation of the rules and Roy must have sought VRS as a measure of "abundant protection."

According to the LIC (Employees) Pension Rules, 1995, forfeiture of service, including resignation, dismissal, removal, termination and compulsory retirement, will entail loss of past service and pensionary benefits. "The rules also state that if the employee of the corporation becomes chairman, then these rules will apply to him as well," the executive said.

Roy started his LIC career in 1981. Prior to becoming chairman, he was manager of the north, central and eastern zones. Roy's resignation is a rare instance of a top LIC executive leaving prematurely.

GN Bajpai resigned as chairman to join the Securities & Exchange Board of India and TS Vijayan stepped down as managing director to become chairman of the insurance regulator.

Who will bolster LIC if it tanks in future?

Source: http://www.firstpost.com/business/if-air-india-is-turning-around-why-should-lic-offer-low-cost-loan-to-the-maharajah

If Air India is turning around, why should LIC offer low-cost loan to the Maharajah?

 

FP Staff  Updated: Oct 20, 2016 12:52 IST National carrier Air India, saddled with huge debt and other major operational challenges over the past few years, seems to be getting its act together and working towards a quicker turnaround.

PTI

Few days after the airline reported its first operating profit in the last ten years for the fiscal year ended 2015-16, the cash-strapped company has now announced it has cut its debt by Rs 5,000 crore in the last fiscal.

As it works towards becoming fully profitable ahead of its schedule under the 10-year turnaround plan, the carrier has brought down its debt to around Rs 46,000 crore at the end of March this year.
"We have phased out more than Rs 5,000 crore debt from the books in the last fiscal and it now stands at around Rs 46,000 crore," a top Air India official said.
The airline had a total debt of Rs 51,367.07 crore at the end of 2014-15 fiscal.
Even as the airline has been reporting improved operational performance besides working on ways to pare debt last fiscal, the debt-laden airline will be seeking help from national insurer LIC to convert its high-cost debt.
Of the Rs 46,000 crore debt post the reduction in dues, an Air India official said Rs 28,000 crore are short-term loans and the rest are long-term borrowings.
According to a report in Times of India, top officials of Air India and Life Insurance Corporation (LIC) are in discussions wherein the former wants its current 10 percent rate of interest on its working capital loan of Rs 10,000 crore be converted to 7 percent by the government-controlled insurer. The lowering of interest rate will help Air India save Rs 300 crore annually on its loan dues.
“AI's total loan is about Rs 50,000 crore, of which Rs 28,000 crore is working capital loan at an interest rate of 10 percent. We are seeking to convert whatever possible of this working capital loan to a LIC loan at 7 percent. Switching Rs 10,000 crore will lead to a saving of Rs 300 crore annually in debt servicing," the Times of India reported quoting a source.
Talks with Air India for a softer loan rate comes after the insurer last year in a similar agreement had announced to provide financial package of Rs 1.5 lakh crore till 2020 to Indian Railways. The Railways has already received first instalment of Rs 2,000 crore loan from the insurer at around 7 percent interest rate.
The question here is: Will the country's insurance behemoth keep fiddling with public money to bailout government companies facing huge losses incurred over the past years?
In the past, there were several instances where LIC was allegedly used in bailing out disinvestments of government-controlled entities.
On queries about LIC being roped in to bailout  disinvestments, finance minister Arun Jaitley said last year, "LIC is not a body which invests only to bailout the government in disinvestment. In issues by private companies, LIC also participates. It stocks the shares as part of its investments and then sells them at an appropriate time."
In fact, last year in the IOC stake sale, the government managed to garner Rs 9,379 crore primarily because LIC bought significant stake during the offer for sale of the state-owned oil company.
“LIC has bought a significant stake in the Indian Oil issue,” a Mint report said last year quoting the head of a brokerage firm.
Besides Air India, will the cash-cow LIC be used as a tool to offer funds at lower rates of interest to other government firms facing challenging operational issues besides servicing huge debts.
For instance, state-run BSNL had an outstanding debt of Rs 7,666.94 crore as on January 31, 2016, while that of MTNL stood at Rs 13,529.62 crore at the end of February this year, former telecom Minister Ravi Shankar Prasad had said in a written reply to Lok Sabha in March this year.
With regards to Air India, the airline is staying afloat on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a period of up to March 31, 2021.
For the first since the merger of Indian Airlines, Air India has reported an operating profit of Rs 105 crore in 2015-16 on the back of lower fuel costs and higher passenger numbers. It had an operating loss of Rs 2,636 crore in 2014-15.
Analysts say a fall of nearly 31 percent in fuel costs in the last financial year compared to the year-ago period was a key factor in the airline becoming operationally profitable.
Sources had said the airline's net loss after interest declined to Rs 3,837 crore in the last fiscal, from Rs 5,859 crore in 2014-15.
However, a Firstpost report had highlighted that although the operational profit is a significant milestone for the ailing national carrier, it could soon evaporate if oil prices go up.
So, it could be said that not many cost initiatives, but savings from benign global crude prices saved it the blushes in 2015-16.
In fact, a media report recently said that the airline has once again missed the target for a modest operational profit for the first quarter of the current fiscal and posted a loss. Unsure about its ability to service the huge debt, the airline's management wants a corporate debt restructuring from the banks for its survival.
(With PTI inputs)

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[–]imaketrollfaces 10 points 1 day ago 

Capital infusion to accelerate profits.

[–]WhatsTheBigDeal 5 points 23 hours ago* 

At the cost of policy holders. As a policy holder for of a LIC policy, the burden on your shoulders is enormous. Not only do you have to pay towards the commissions of your agent who mis-sold you the policy, but also bail out failing OFSes, lend money at low cost to symbols of national pride like Air India besides contributing to the government held company's bottomline.

[–]samacharbot2 1 point 1 day ago 

Talks with Air India for a softer loan rate comes after the insurer last year in a similar agreement had announced to provide financial package of Rs 1.5 lakh crore till 2020 to Indian Railways

---

·         "We have phased out more than Rs 5,000 crore debt from the books in the last fiscal and it now stands at around Rs 46,000 crore," a top Air India official said.

·         Of the Rs 46,000 crore debt post the reduction in dues, an Air India official said Rs 28,000 crore are short-term loans and the rest are long-term borrowings.

·         According to a report in Times of India, top officials of Air India and Life Insurance Corporation (LIC) are in discussions wherein the former wants its current 10 percent rate of interest on its working capital loan of Rs 10,000 crore be converted to 7 percent by the government-controlled insurer.

·         The lowering of interest rate will help Air India save Rs 300 crore annually on its loan dues.

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[–]Bowiefanzy 1 point 1 day ago 

46k crores!!

[–]WhatsTheBigDeal 1 point 22 hours ago 

Air India is just like Kingfisher, just that its debt is sovereign...

[–]stoikrus1 1 point 20 hours ago 

LIC is a government financing arm like no other. It bails any failing PSU bond offering, it props up stock markets and the Rupee. It's a case of poor capital allocation which, if it goes south will wipe out the savings of millions of middle class salaried folks. Just like Unit Trust of India.
******************************************************************************* My queries to LIC in the light of the above-mentioned report:

LIC can't pay its resigning ex-employees their legally rightful Arrears' payments and Difference in Statutory retirement benefits and expects them to file court cases to get justice. This injustice has been going on since nearly 2 decades, that is from 1997! My RTI appeal and the replies received from LIC are testimony to this fact.

Why shouldn't it fulfill its responsibility towards these hard-working employees who have contributed towards its profitability, while in service, by granting them their dues?

Why does it pride itself on bailing out sick and unprofitable Government undertakings?

Who will be able to bail out LIC in case it tanks in future, at the alarming rate at which it is bolstering the above-mentioned undertakings?

Doesn't it owe its stakeholders, majorly the employees, policy-holders and agents, etc.? 

How will it explain its rationale to invest in loss-making undertakings, at the cost of the policy bonuses, policy-holders' trust and the resigning ex-employees' dues that it has unjustly been repudiating?

                                                                                             Priya Swaminathan

NHRC - Handbook

 Source: http://nhrc.nic.in/Documents/Publications/Retiral%20Benefits%20as%20a%20Human%20Rigts%20NHRC%20Initatives_2014.pdf          
         
           The Handbook of the National Human Rights Commission highlights how retirement benefits are essential for the well-being of a retired employee's family. They form a part of basic human rights and shouldn't be deprived to the employees' families when they need them the most.
           Several court cases are given in this handbook; the ones pertinent to insurance are also mentioned. The readers are requested to kindly peruse them carefully.
           One case pertaining to Gratuity payment mentions that Gratuity is not a bounty, it must be given to the ex-employees as per the last basic pay, as per revised pay-scales, irrespective of the mode of retirement.
           One only wishes that LIC's lawyers advise LIC appropriately, whenever it decides to unjustly deprive its ex-employees of their arrears' payments and retirement benefits' difference payable as per revised pay-scales. They should also keep abreast of the latest judgments on these issues and update the Management regularly. They should behave responsibly and conscientiously. One never knows when the shoe could be on the other foot!  
          Loyalty to the Management surely shouldn't mean bending backwards to put the ex-employees to a distinct disadvantage and forwarding the cause of LIC's injustice! 
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          How did LIC manage to illegally repudiate the resigning ex-employees' arrears payments and difference in retirement benefits since 1997? 
          Why should these ex-employees have to suffer the trauma of being deprived of their wages, a Fundamental Right? Why should they have to run from pillar to post for their basic rights? Why doesn't the Government put an end to this?  
          LIC is an institution with the motto 'Yogakshemam Vahamyaham'- 'Your welfare is our responsibility.'
         This 'welfare' obviously does not include the resigning ex-employees' welfare - Sad but true!
         Think about it!