A flashback on struggles fought in difficult situations for 42 years and gains achieved in permanent interests of LIC employees
The emergence of a new force
14th November 1972. On this day emerged a new force with the banner of “All India LIC Employees Federation”. The glamorous event at Sunderabai Hall in Mumbai was projected by the newly opened Doordarshan, the first telecast of a trade union event in India. The obvious choice for the chief posts of president and general secretary was – Com. S. M. Banerjee and Com. P. P. Patil. And began a new roaring stream of movement with great vigour, vitality and new vistas. At Jamshedpur conference in 1989, Com. Gurudas Dasgupta, M. P. took over as president and Com. A. V. Nachane as general secretary.
The turbulent period
Soon began the agitation for the realisation of Charter of Demands and by the end of 1973, the working at centralised cash collection centres in Mumbai, Trivandrum and Lucknow came to a dead halt which attracted widescale press publicity. Also great was the impact seen at Nashik, Bangalore, Jamshedpur, Indore, Muzaffarpur, Asansol and Kanpur all of which were acknowledged as Federation’s bastions. More disturbing for the detractors was the rise of Federation at Kolkata in a big way.
In this agitation, the entire team of the office-bearers of Federation’s Bangalore divisional union was suspended from service. They included Com. H. V. Anantha Subba Rao, Com. N. Narayana and Com. N. Sundaramurthy. Lockout was declared in six divisions and this was followed by threat of total lockout. In this serious situation, Com. Banerjee and Com. Patil met Finance Minister Yashwantrao Chavan on whose intervention the unbending LIC Chairman was forced to improve the offer on the charter, lift lockouts and withdraw suspensions unconditionally. The negotiations took place exclusively with the Federation. 15 pc Bonus was the shining feature of this settlement.
Government seeks to destroy Bonus settlement in
LIC with the use of parliament
It was this achievement of settlement on 15 pc Bonus that the Government sought to destroy with the use of its majority in the parliament during emergency. The Federation showed an extraordinary courage in challenging in the Supreme Court the Act passed by the parliament at a time when there was dead silence on the trade union front, with the help of Com. R. K. Garg, the flamboyant lawyer who made out an altogether new point that the Bonus under a binding settlement was ‘property’ protected under Article 31 of the Constitution of India. A very big issue was raised and therefore, Federation’s petition was referred to a seven-judge Constitution Bench headed by Chief Justice M. H. Beg and assisted by Justice Chandrachud, Justice Bhagwati, Justice V. R. Krishna Iyer and other senior judges.
Com. R. K. Garg opened his arguments by reading out excerpts from the Communist Manifesto, something absolutely unprecedented and confidently faced battery of questions from the seven luminaries for the whole day. From the next day continued the detailed hearing, Com. Garg putting forward his submissions, the Attorney General appearing for the Government of India in a bid to counter his arguments. Finally came the historic judgement upholding the Federation’s contention that Bonus under a binding settlement was ‘property’ protected under Article 31 of the Constitution of India and striking down the Act.
Industrial Disputes Act supersedes LIC Act
By this time, the binding period of the settlement was over. To achieve the same frustrated purpose, the Government issued Notification under the LIC Act to withdraw the provisions of the Bonus Settlement. With this began the second phase of the Bonus battle with Justice V. R. Krishna Iyer (who was law minister in the first Communist Ministry in Kerala in the fifties) occupying prominent place in the Bench constituted for hearing the Federation’s petition. The Federation won this battle as well with the Supreme Court declaring that the Industrial Disputes Act prevails over LIC Act in industrial matters which means that one settlement can be replaced only by another settlement or industrial award.
The Indefinite Strike
In spite of the Supreme Court judgement, the Government – LIC combine did not release the Bonus payment. The Federation then thought of direct action and, in co-operation with AIIEA, launched indefinite strike in April 1981. LIC’s offices throughout India remained closed for 14 days. The strike was called off when the Supreme Court issued Writ of Mandamus directing the LIC to pay the arrears of 15 pc Bonus with 12 pc interest thereon. This was the first (and the last) indefinite strike in LIC, running for as many as 14 days. The employees who joined the service after 1981 must know this history.
LIC employees thrown out of the purview of Industrial Disputes Act
In a revengeful mood, the Government then passed an Act arrogating to itself an absolute power to determine the LIC employees’ service condtions regardless of any agreement, award or court decree in force. Again battle ensued in the Supreme Court. This time the Government succeeded. The LIC (Amendment) Act, 1981 was upheld by the Supreme Court. The Government unleashed mischievous propaganda to justify its action. The theme was that LIC employees were ‘highwage islanders’. The Federation brought out a booklet exposing the government’s bluff on the strength of factual details. Finance Minister Pranab Mukherjee took a note of it and arranged meeting direct between the representatives of the Government and the employees’ unions in his presence with the Federation playing the pivotal role. The presence of Finance Minister and Com. S. M. Banerjee brought seriousness to these negotiations at the North Block, the Federation’s team led by the present general secretary. This led to resumption of bipartite negotiations, the Government’s overriding power of Notification under the amended Act notwithstanding.
Notifications rolled back
As a result, several highly adverse Notifications were rolled back. These are some instances –
- The ceiling of Rs. 20,000 on Gratuity was scrapped
- The ceiling of Rs. 15.80 on each DA slab was done away with
- The ceiling of Rs. 3500 on gross salary was also scrapped.
Just look at what is now available by way of Gratuity (as against Rs. 20,000), DA for several slabs (as against Rs. 15.80 maximum only for each slab) and maximum gross salary (as against Rs. 3500) and the hugeness of the gains will be sharply evident.
Federation defeats the attempts to split LIC
In between, a very sinister conspiracy was hatched by the Government to split LIC into five independent competing corporations, under the mounting pressure of the capitalist lobby whose representatives in the parliament had opposed tooth and nail the nationalisation of life insurance industry in 1956.
The Government introduced a Bill in the parliament to achieve its aim. The campaign to mobilise public opinion against the Government’s move was organised by the Federation in a very big way by releasing abundant literature. The Bill was referred to the parliament’s Joint Select Committee in the face of vehement opposition from Com. S. M. Banerjee, Com. Indrajit Gupta, Com. C. K. Chandrappan and a few other well meaning MPs. Surprising though it may appear, the entire Joint Select Committee endorsed the Government’s proposal, the only exception being of the CPI MP Com. C. K. Chandrappan. Federation’s well-wishers began saying to its leaders, “we very much admire your Herculean efforts to defeat the Government’s move but now it’s fait accompli. But the Federation did not lose its nerves. It continued its efforts with help from Com. S. M. Banerjee, Com. Mohit Sen and Com. Indrajit Gupta and still more valuable assistance from Dr. Arjun Sengupta, special secretary to Prime Minister Smt. Indira Gandhi who intervened at the final hour. The bill was listed for adoption on the last day of the parliament session but the order continuously underwent change, the Bill on LIC’s split-up slowly sliding down and at midnight the parliament was prorogued sine die, the nation going for the polls. Rang the telephone at the Federation Headquarters. It was telephone call from LIC’s current-in-charge A. S. Gupta who heartily congratulated the Federation for an amazing victory.
It was only because LIC remained one single monolithic corporation that it could take on the rapacious private life insurance companies entering into our Insurance sector in collaboration with foreign Insurers. Had it been split into smaller independent corporations engaged in competition with one another with consequent emasculation and total loss of direction, the public sector in life insurance business would have been wiped out.
The Great Pension Battle
Federation led the Great Pension Battle in the financial sector. While the Finance Ministry and the managements of financial sector Institutions rejected the concept of Index-Linked Pension Scheme on the ground that they could not accept ‘open-ended’ liability, several unions in Banks, LIC and GIC formed an unholy alliance to oppose it, demanding pension as Third Retirement Benefit. They kicked up dust of confusion with mathematical jugglaries going to the extent of saying that replacement of Provident Fund Scheme by Index-Linked Pension Scheme would result in a financial loss that could not be compensated in thousand years ! Relying on Goebbel’s principle that a falsehood repeated several times gives it an appearance of truth, they made various false statements stating assertively that they would prefer continuance of Providence Fund Scheme and a nominal monthly pension of Rs. 500 as Third Retirement Benefit ! This did create largescale confusion in the Banking Sector but in LIC Federation’s extensive education campaign completely exposed the falsehood and they were seen as bluff brigade.
The struggle for Index-Linked Pension Scheme gained a big thrust when Federation and the mighty AIBEA joined hands. The Government had to relent. But even after inglorious defeat, the officials of the Insurance Department sought to puncture the agreed understanding by inserting a clause to the effect that the DA on Basic Pension would be paid on the basis of Actuarial Valuation of the Fund from year to year. As soon as the Federation came to know about this conspiracy, it shot a message to Finance Minister Dr. Manmohan Singh conveying that the Ministry officials were tampering with the agreed understanding. Dr. Manmohan Singh promptly snubbed the Ministry officials and asked them to remove the mischievous clause forthwith.
In LIC, 90 pc officers and employees exercised their option in favour of the pension scheme. The younger employees were impressed by the Federation’s Brochure with the caption “The Younger You Are, The Higher Are Pension Benefits.”
The retired employees were overwhelmed. With tears of joy, they donated their entire first one month’s pension to the Federation which was carrying debts owing to heavy expenses on past struggles. The present generation of LIC employees should understand the love and attachment of the earlier generations towards the Federation and the way they valued every achievement.
The benefit was astounding. As against a maximum of Rs. one thousand interest on LIC’s PF contributions in the 1990s, they are receiving monlthly pension of Rs. 12,000 or more.
The Federation is making sincere efforts towards getting for the left out seven to ten thousand officers and employees one more and final option for Pension.
Healthcare
An important issue constantly in view of the Federation since the 1980s has been Healthcare.
After some time, the Federation secured Mediclaim Scheme with 75 pc subsidy in the premium for the employees in service which subsidy was extended to the retired employees through its efforts recently.
The medical assistance improved with a scheme of ex-gratia relief upto Rs. Nine lakh in high cost or protracted medical treatment, available during service. A very substantial number of employees have been the beneficiaries. The latest benefit is health check-ups for the employees above the age of 40 years, every year for those above 55 years of age.
Federation has now achieved for the employees (including retirees) and their families complete healthcare which means, in practical terms, Sum Insured upto Rs. twenty lakh with 75 pc subsidy for the Basic Sum Insured with cashless service in reputed hospitals and regular health check-ups for life time.
A momentous struggle against privatisation of Insurance Industry
The Government’s move to allow the entry of private insurance companies into the Insurance Sector and that too with their collaboration with foreign Insurers, brought all life and general insurance employees together for a stubborn resistance. This nationwide struggle was led by Federation’s president Com. Gurudas Dasgupta, a leader of very high stature. There was a nationwide propaganda campaign, conventions, TV interviews, culminating in a March To Parliament with mass petition signed by one crore people strongly opposing the entry of private companies into the Insurance Sector.
True, the Government finally succeeded. But the massive resistance delayed the entry of private companies into the Insurance Sector for about four years. This gave time for the LIC to prepare for the competition, upgrading its technology and streamlining its administrative set-up.
The Government is bent upon moving forward. It has raised the FDI limit from 26 pc to 49 pc and thus turn the Insurance business into a purely commercial activity with foreign dominance. This is highly detrimental to national interests and pushes into oblivion the social objectives of LIC and GIC.
Federation alone did it
- It organised youth festivals on an all-India scale-Bangalore (1986) and Jamshedpur (1998). The sprint queen P. T. Usha inaugurated the Athletic Meet at Bangalore while senior cine aritste A. K. Hangal was Chief Guest. At Jamshedpur, the renowned film personsality Mrinal Sen was Chief Guest. Bachendri Pal, the first Asian woman to scale Mt Everest was chairperson of the Reception Committee.
- It organised water conferences with participation of Anupam Mishra, Rajendra Singh and other water experts. A booklet ‘The Water Crisis’ written by its general secretary was published by an education academy.
- Its monthly journal Vima Kamgar carried editorials on atrocities on women and dalits since 1980s – the rape of Mathura, an adivasi girl at Chandrapur police station / Roop Kanwar forced to go sati in Rajasthan / Gangrape of a girl student in Elphinstone College, the gang leader being the son of a minister / a dalit youth stoned to death in Western Maharashtra, his sin being that he entered Hanuman Temple.
- ‘Everlasting Impressions’ – three booklets reproducing editorials of Vima Kamgar on renowned political leaders, social reformers, cine artistes, singers ….
- Three recent publications – Icons (Marx, Lenin, Gandhi, Ambedkar, Dange to Ho Chi Minh, Nelson Mandela and others) / The great women in the world / A Flashback on immortal struggles of the working class (unknown to large sections of office and factory workers)
A glance over other achievements
- Stalled VRS which flooded all other sectors
- Also stalled forced transfers in the name of mobility
- PLLI – a new concept
- Lunch Coupon linked to attendance-a substantial addition to monthly emolument
- Absorption of 5000 Temporary Sub-Staff in permanent employment of the Corporation – Absorption of permanent part-time sweepers in full– time employment.