Trade unions to go on strike against FDI hike in insurance

The govt has decided to raise the FDI cap in the sector to 49%

All trade unions, including the BJP affiliate Bhartiya Majdoor Sangh, in insurance sector will go on a strike tomorrow to protest the NDA government's decision to raise the FDI cap in the sector to 49%.

"Almost 1 lakh employee across the country will strike work tomorrow as the government's move will not only dilute the vitality of insurance sector but also pave the way for foreign capital coming into the most sensitive zone of the economy," senior CPI leader Gurudas Dasgupta said.

"All over the world private insurance companies have been found to be delinquent. If they are allowed in India, it will seriously compromise the interest of investors and also impair upon the safety of long-term investment in life insurance," he said.

The Insurance Laws (Amendment) Bill, Modi government's first major reform initiative to raise FDI cap in the sector to 49% from the current 26%, will be moved in the Rajya Sabha tomorrow.

Dasgupta said trade unions would meet shortly to take stock of the situation arising out of the government's moves, including the decision to "dilute" labour laws.

Such moves, he said, will seriously jeopardise the tranquillity, stability and safety of the financial sector.

Referring to the labour strike in Rajasthan two days ago against the state government's move to privatise the government-owned transport company, he said unions would be stepping up their agitation against such moves.