M & A: FIEUN Urges Regulatory Authority to Guarantee Jobs and Facilities of All Employees

Kathmandu: Financial Institutions Employees Union of Nepal (FIEUN) has drawn the attention of the Insurance Board to guarantee the job and facilities of the employees while giving consent for the merger or acquisition of insurers.

FIEUN has shown its concern over the merger among insurers admitting that the jobs of large number of employees may be pushed to risk in the course of merger. It has requested the insurance regulator, Insurance Board, to make sure that not a single employee is forced to resign during the merger.

FIEUN is the apex body of the employees union of all insurance and financial institutions of Nepal.

FIEUN has stressed that except financial assets, the management of the human assets too must be taken into consideration while issuing in-principle consent for the merger or acquisition.

The FIEUN has mentioned that As per the Article No. 3 of the Directives on Merger and Acquisition of Insurers 2076 (with amendments 2078) ,it is mentioned that the insurer should submit the details of the plan for employees management prior to receiving the in-principle consent from the Insurer Board.

At present, a circular issued by the Insurance Board mentions that “the salary and benefits of the employees will not be reduced due to merger or acquisition”. But FIEUN demands a clear plan and picture for the workforce management of the insurance companies involved in the merger.

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