“Pay scales offered to us as on 01st August 2017 with loading factor of 10 per cent put us in most disadvantage when compared to those granted to LICI and ECGC,’’ said unions in their letter to Suchita Gupta, chairperson of GIPSA, the official coordinating agency among four general insurers and GIC Re
The government last year had approved a 16 per cent wage revision with arrears and 15 per cent of hikes with arrears for the employees of LIC and PSU banking industry respectively
New Delhi:
Refusing to accept the latest offer of 12 per cent pay hike with full five year arrears since August 2017 made by GIPSA, the unions of PSU general insurance industry have said it is far much lesser than the wage revision granted to state owned Life Insurance Corporation of India (LICI) and ECGC.
“Pay scales offered to us as on 01st August 2017 with loading factor of 10 per cent put us in most disadvantage when compared to those granted to LICI and ECGC,’’ said unions on Wednesday in their letter to Suchita Gupta, chairperson,GIPSA, the official coordinating agency among four general insurers and GIC Re.
The letter has been written by Joint Forum of Unions and Association of Employees & Officers in Public Sector General Insurance Companies (JFTU _ PSGICs) in response to the latest offer made by GIPSA to the unions on August 4.
The government last year had approved a 16 per cent wage revision with arrears and 15 per cent of hikes with arrears for the employees of LIC and PSU banking industry respectively.
The parity in core benefits of employees in public sector insurance industry, both life and non-life, were maintained from the beginning due to the fact that both are having similar job profile, said the union.
The presentation made by the management, during August 4 negotiation, showing dismal performance of the companies is not a correct picture. The performance figures of GIC Re have not been included, added the unions.
“Our Wage Revision is due from 01st August 2017 and should be based on the performance of previous period of 2012-2017. It is a matter of record that combined profits after tax posted by PSGICs and GIC Re, are Rs.15212.14 crores during the period 2012-2017. Even for the extended period wage periods 2012 to 2022, these profits after tax stood at Rs.14774.40 crores,’’ said the unions.
In addition to the dividends paid over the periods, the companies have contributed crores of rupees to the exchequer as tax on dividends, income tax and GST collections. These companies are the flag bearers of all Government schemes and have suffered huge losses while working as engines of economic growth and social security for the country and its economy, explained the letter from JFTU _ PSGICs.
“The offer of 10 per cent loading is largely insufficient to meet the cost of living adjustments and will work out to be less than 2 per cent on annualised basis. Even after parity with LICI, our pay packages will remain far behind the pay packages in the comparable levels in the government sector who are getting their wages as per the Pay Commission from time to time,’’ pointed out the unions.
“In view of the above, we deserve a better deal and request parity in core pay structure with LICI / ECGC. LICI payments to their workforce on account of various allowances, non-core benefits and other outgoes is otherwise also much higher when compared to any such payments to our workforce,’’ observed the unions.
Meanwhile, association of GIC Re employees `GIC Re United Forum’ has sought clarification from Gupta whether GIC Re employees are part of the wage negotiation between GIPSA and unions of the PSU general insurance industry as the performance of GIC Re has not been included while assessing the financial performance of the industry for wage revision.
“If the GIC Re performance and data is not included in the ongoing wage negotiation of the industry, and still GIC Re employees are asked to accept the new wage revision, it will be a wholehearted deception by GIPSA and DFS(Department of Financial Services) on hardworking GIC Re employees,” said the forum.
We must accept whatever GIPSA is giving us..but this is my personal opinion..that we must accept 12% with arrears.
If the government gives us more than 16% as similar to LIC that should be better. If not, we must accept 12% with arrears.
Otherwise we and all employees will oppose all unions and leaders for their wrong decision..
We shouldn’t loose everything. But arrears must be given.
Thanks
Very right.
We had already paid a lot of claims during Carona and always do pay heavy claims in health segments. Further we are the only public sector companies which are paying huge amount of MACT claims awarded by the courts.
Comparatively the premium is much lower.
We are meeting the targets of social schemes like JPA gramin etc and moreover the premium is much lower for PA insurance also.
Sir,we deserve better pay scales than the LICI and others.
BUSINESS OF GENERAL INSURANCE HAS HIGH RISK NATURE, GEN. INSURANCE COMPANIES
ARE RUNNING ON INVESTMENT AT INTERNATIONAL LEVEL, HOW CAN EMPLOYEES ARE LIABLE FOR HEAVY LOSSES, PROFITIBILITY AND SOLVENCY MARGIN IS ALSO A TECHNICAL ISSUE IN GENERAL INSURANCE,AND THIS MAY BE LAST JOINT NEGIOTATION.SO I REQUEST JFTU NOT TO ACCEPT LESS THAN LICI AND ECGC.
A step motherly treatment to PSU General insurance employees. If LIC is given better wage revision why not General insurance emp since both cater to social responsibility as a result of which premium is low but claims are hefty. If effective policy is devised to counter such losses & losses due to claims which are not genuine, the general insurance sector can show profits
We should continue struggle for a better wage revision.
It should be better than LIC .
Let us wait, we are not losers.
Hope for the best.
Do good for others.
During covid 19 company paid full salary, hence union may accept the govt proposal of mass recruitment in the company