Date:28/11/2007 URL: http://www.thehindu.com/2007/11/28/stories/2007112856342100.htm

Business

AIIEA calls for merger of four companies

Staff Reporter

Along the lines of LIC of India

Business interests could be served through merger
National conference of AIIEA on December 8

KOCHI: J. Gurumurthy, secretary, All India Insurance Employees’ Association (AIIEA), has called for the merger of four public sector general insurance companies and the creation of a monolithic corporation along the lines of Life Insurance Corporation of India.

He was addressing a study camp organised by the Kerala State General Insurance Employees’ Union here on Monday.

Mr. Gurumurthy said that since all the four companies – United India Insurance Company, National Insurance Company, Oriental Insurance Company, and New India Assurance Company – served the same purpose there was no justification for the government to own four different companies.

He said the business interests and social objectives of the companies could be better served through such a merger.

Mr. Gurumurthy said the AIIEA had already launched a campaign and sought the support of political parties and leaders on the issue.

Hike in wages

He sought a 40 per cent hike in wages in public sector insurance companies as demanded in the charter of demands of the Association issued in August this year. Mr. Gurumurthy said that the demand was eminently justified considering the commendable performance of the companies during 2006-07.

He demanded that the managements launch negotiations as early as possible for the settlement of the charter of demands.

There is an urgent need to arrest the growing trend of talented officials from public sector insurance companies joining private insurance companies after being lured by the offer of higher salaries, he said.

Mr. Gurumurthy flayed the public sector managements for withholding promotions of clerical and subordinate employees for the past three years on the ground of proposed changes in the promotion rules.

He alleged that senior employees were subjected to forced transfers under the garb of the transfer policy.

He said that such measures were killing the morale of the employees at a time when the need was for all-round involvement of the workforce in a highly competitive scenario.

Mr. Gurumurthy said that the national conference of the AIIEA to be held at Kanpur on December 8 would give shape to a plan of action to press these demands.