Nationwide Strike by LIC Employees

Ludhiana, February 12, 2026: LIC employees across the country, including employees working under the purview of Ludhiana Division, was on strike in protest against the Union Government’s anti-worker, anti-public sector policies. The strike is being supported by the Central Trade Unions and sectoral federations, including the All India Insurance Employees’ Association (AIIEA).
 
LIC Employees are deeply agitated over the Union Government’s decision to notify all four Labour Codes on 21 November 2025—the Code on Wages, Industrial Relations Code, Code on Social Security and the OSHWC Code—despite sustained opposition from the Central Trade Unions and independent federations. These codes, which replace 29 existing labour laws, drastically dilute workers’ rights relating to job security, collective bargaining, social security and safe working conditions. The government ignored repeated demands to convene the Indian Labour Conference and to withdraw the codes, making this move profoundly undemocratic and anti-worker.
 
While addressing the gathering, Maan Singh, Divisional Secretary, NZIEA, said that Recruitment in LIC has emerged as a critical issue. While LIC’s in-force policies increased by about 410% between 1995 and 2024, staff strength declined by over 49%, a fact acknowledged by the government in Parliament. Despite a huge backlog of vacancies, recruitment to Class III and Class IV cadres has been stalled for years, causing deterioration in working conditions, causing severe staff shortages and industrial unrest. The situation is particularly acute in the Class IV cadre, where recruitment has virtually stopped and attempts are being made to outsource permanent jobs in violation of agreed norms.
 
Another major grievance is the continued denial of recognition to AIIEA/majority trade union in LIC. LIC’s refusal to recognise the majority union violates the principles of industrial democracy and ILO Conventions 87 and 98. LIC remains the only major financial institution without a recognised union despite having the largest unionised workforce.
 
Employees are also opposing the Insurance Laws (Amendment) Act, 2025, which raises FDI in insurance from 74% to 100%, allowing full foreign ownership. This move subordinates the interests of policyholders and domestic savings to foreign capital and threatens the long-term financial sovereignty of the country. The strike is also against the government’s aggressive policy of disinvestment and privatisation of LIC & the PSUs. The Budget 2026-27 has set a disinvestment target of ₹80,000 crore, and through the National Asset Monetisation Pipeline, valuable public assets across infrastructure sectors, including LIC, are being monetised, raising serious concerns over loss of public control and long-term public interest.
 
Further, LIC management has failed to hold any structured dialogue with unions on crucial issues relating to changing business models, increasing technological interventions and their job-displacing impact, leading to growing alienation among employees. Several long-pending issues—such as LTC encashment, enhancement of ex-gratia for pre-1986 retirees, pension under the 1995 Pension Scheme for all employees, and pension updation, enhancement of Gratuity ceiling to 25 lakhs under Payment of Gratuity Act 1972 etc.—remain unresolved.
 
In the absence of meaningful dialogue and resolution of these issues, LIC employees have been compelled to resort to collective action. The nationwide strike on 12 February 2026 is aimed at defending workers’ rights, protecting LIC as a public institution and safeguarding the interests of policyholders and the public at large.