AIIEA opposes govt's decision to open top PSU positions to private sector

Visakhapatnam: The All India Insurance Employees’ Association (AIIEA) strongly opposed the government's move to approve revised consolidated guidelines for appointment of whole time directors, managing directors, executive directors and chairpersons in public sector insurance companies like the LIC and Public Sector General Insurance (PSGI) Companies and the public sector banks.

These institutions are governed by Acts of Parliament- the LIC Act 1956, GIBNA Act 1972 and State Bank of India Act 1955. Their management structures, roles and appointment processes are clearly defined in these laws. The issuance of new guidelines without amending the enabling acts amounts to executive overreach and an undermining of parliamentary authority, the representatives of AIIEA expressed concern.

The move will demoralise employees, strikes at the very ethos of nationalisation which ensured that banking and insurance serve the public interest rather than private profit. The revised guidelines open the door for greater private influence and eventual privatisation of these public sector financial institutions. They would threaten the economic sovereignty of the nation apart from endangering the security of people’s savings. Public sector banks and insurance companies have been the backbone of inclusive growth and social security. Any attempt to dilute their public character or shift control away from Parliament and the people is unacceptable, the AIIEA representatives underlined. Opening the top-most positions of these vital institutions to outsiders from the private corporate sector by way of lateral entry will demoralise the officers who are giving their best to these institutions, opined Srikanth Mishra, AIIEA general secretary. The removal of APAR- based merit evaluation and employing private HR agencies for behavioural assessment will fundamentally alter the appointment framework mandated by Parliament. The AIIEA demands immediate withdrawal of the revised guidelines and calls upon the government to uphold public ownership and engage in transparent consultation before making any such policy changes, Srikanth Mishra added