LIC warns of labour unrest ahead of IPO: Report

Ahead of IPO, Life Insurance Corporation of India (LIC) on Sunday warned that industrial unrest, slowdown, and increased wage costs could impact its business and operations.

LIC’s red herring prospectus (RHP) accessed by Livemint, stated, “Certain of our employees are members of unions that our corporation has not recognised, and we may be subject to industrial unrest, slowdowns and increased wage costs, which could adversely affect our business and results of operations.”

According to the news report, as of December 31, 2021, LIC had nearly 1,05,207 full-time employees and the company has not recognised any unions or associations and does not have any wage agreement with any of them.

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The company said that it would be difficult for them to ‘maintain a flexible labour policy’. “Labour unrest or strikes associated with our business could also damage our reputation with our customers," the RHP said.

Two years ago in 2018, the insurance firm’s employees had gone on a similar strike for two days demanding a wage revision and options for pensions and recruitment.

The company has recently been busy due to the country’s largest IPO opening. The LIC IPO aims to price shares between 902 rupees and 949 rupees each. The offering runs from May 4 to 9 for other investors.

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