LIC IPO: Life Insurance Corporation (LIC) unions have reportedly determined to stage a sequence of protests against the federal government’s resolution to promote part of its holding in the life insurer by preliminary public providing (IPO).
Following finance minister Nirmala Sitharaman’s announcement in her Budget 2020 speech, three main commerce unions of LIC will reveal earlier than all places of work of the life insurance coverage behemoth throughout the nation. The unions will stake agitations on Monday throughout lunch break, adopted by one-hour protest strike (walk-out) on Tuesday earlier than lunchtime.
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“We are totally against it (the offer for sale of equity shares by the Government via IPO). Why should LIC go for an IPO when it is a very profit-making organisation? On Government’s investment of ?5 crore, LIC has given it a dividend of ?2,600 crore last year,” S Rajkumar, General Secretary, Federation of LIC Class-I Officers’ Associations informed the Hindu BusinessLine.
“Whenever the government wants funds, we provide the same for infrastructure development, social sector and housing. By listing LIC, it is killing the golden goose,” he added.
The joint discussion board of LIC’s (three) main commerce unions- Federation of LIC Class-I Officers’ Associations, the National Federation of Insurance Field Workers of India and the All India Insurance Employees Association represents round 90% of the life insurer’s complete workforce.
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LIC had 2.85 lakh staff as at March-end 2019.
Apart from the protests on February third and 4th, the joint discussion board (of LIC’s commerce unions) may even think about a one-day strike later, the report added.
The authorities may even promote its stake in IDBI Bank to non-public traders.
Also Read: LIC IPO: Govt to promote a part of its holding in life insurance coverage firm, says Sitharaman