GIPSA officials are meeting the ministry officials on Monday to work out the final details of wage revision and the date of notification..
in a late afternoon development on Sunday, the National Confederation of General Insurance Officers’ Association in a letter to Suchita Gupta, CMD, National Insurance Company and chairperson, GIPSA warned, “Any unilateral decisions on wage revision shall not be appreciable and may vitiate the IR (Industrial Relations) environment”
The ministry of finance(MoF) has finally rejected the demands of unions, belonging to the public sector general insurance industry, for a wage revision on par with Life Insurance Corporation(LIC) and is now set to notify 12 per cent hike for the 44,000 workforce of the industry.
The ministry is yet to make an official announcement about the conclusion of the ongoing wage revision negotiation and GIPSA officials are meeting ministry officials on Monday to to work out the final details of wage revision and the date of notification.
Though, unions have got an advance indication of the `unpleasant though not entirely unexpected development’ where their long standing demand to have a pay parity with LIC is finally being rejected and 12 per cent hike, as offered on August 4, will be enforced by the MoF unilaterally, they are yet to respond to the new situation officially.
However, in a late afternoon development on Sunday, the National Confederation of General Insurance Officers’ Association in a letter to Suchita Gupta, CMD, National Insurance Company and chairperson, GIPSA warned, “Any unilateral decisions on wage revision shall not be appreciable and may vitiate the IR (Industrial Relations) environment. G I P SA Management should take the workforce into confidence on all such matters. We are eagerly waiting for early communications from your side.”
The letter further says “Now it is more than a week that we have not heard anything on our demands of Wage revision from GIPSA, which indicate that no serious thoughts are been given to our genuine long pending wage demands. This tends to create a displeasure amongst the employee communities in PSGICs and may lead to IR actions.”
As the issues over the amount of hike was dragging on for some time, industry sources point out that the top management of PSU four general insurers and GIC Re earlier had informed the ministry that either they have to accept the demands of the unions or just notify the `12 per cent hike along with five-year arrears from August 2017′ to put an end to the sensitive matter.
In fact, during the meeting among the officials of department of financial services(DFS), top management of GIPSA companies and unions, on August 27, Suchita Gupta, CMD, National Insurance Company and chairperson, GIPSA had told unions that 12 per cent of wage hike was a final offer and Sourabh Mishra, joint secretary, one of the government’s key hands in the ongoing wage negotiations, had urged the unions to accept the offer.
However, the unions in the meeting had insisted on a pay hike on par with LIC and wage negotiation had remained inconclusive.
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.
Earlier, refusing to accept the latest offer of 12 per cent pay hike with full five year arrears since August 2017 made by the GIPSA, the unions of PSU general insurance industry had said it was far much lesser than the wage revision granted to state owned 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 in their letter to Gupta.
With the 12 per cent hike along with five years of arrears, wage bill for National Insurance Company will be around Rs 2177 crore , Rs 2080 crore for New India Assurance , Rs 2135 crore for Oriental Insurance Company and Rs 1752 crore United India Insurance.
There will be a total outgo of Rs 8146 crore from all four companies for meeting wage revision expenses, said analysts.
“Whether, the companies particularly, three financially weak companies including NIC, United India Insurance(UII) and Oriental Insurance Company(OIC) have sufficient funds to pay the higher wage bill either with arrears or excluding arrears or they need further capital from the government is yet to be known,” said industry sources.
The ministry has already informed the unions that the next wage revision will be based on the performance of each of PSU general insurers and each individual within the company.
Wage revision of each employee to be linked with the performance of the organisation and his/her own performance, GIPSA had said in its letter to the unions of the industry.
GIPSA is the official coordinating body for the four PSU general insurers, New India Assurance, OIC, NIC and UII GIC Re.
According to the new plans, primary component of the wage revision will be variable (performance based). However, a small fixed component of the pay shall be towards the cost of living adjustment during each appraisal and wage revision cycle, said the GIPSA.
Measurement of performance will be made absolutely objective, based on key performance indicators identified for each employee as well as the performance milestones set for each organization. APAR(annual performance and appraisal report) and promotion policies will be modified accordingly to recognize and reward good performance, said GIPSA.
Please merge all four company
Why mo such restrictions for
Govt Employees, Judges, Parliamentarians, etc?
Remeber that Banks are lootting from Banl Employees’ Pension Fund created by Bank Employees’ to write-off their Big NPAs while Banks are not allowing Pension Revision to Bank Employees on bogus demand of shortage in Bank Employees’ Pension Fund
It’s insult of employees of all four general insurance and GIC re general insurance employees
Reserving comments on treatment of PS GICs different of LIC the treatment being given to retired pensioners of LIC & GIC, especially living in the age group of 75-80-85-90 yrs is most INHUMAN. Majority of such elderly seniors are receiving less than Rs. 5000/ and many more less than Rs.10,000/ to manage their living. Basic Pension was never revised from 1995 till date. LGIPW TRUST is taking up the issue with the Govt.
150 Fellow CWA CA Inter MBA people were laid off by NICL last month.
As per any SOP financial reporting is the first process of restructuring and still the main pillars of financial reporting from last 3 years were removed just 7-10 days before announcement of KPI.
so all these things are expected
Nothing is shocking in this news.
After working more than 36 years in various organisations, I am getting pension from EPFO for Rs 1407/- per month only. This is the reward I received from my government. Govt does not bother for elderly people. This applies for all government. I thing all MPs should be given maximum pension of Rs 1000/- per month. If govt thinks, it is sufficient for common people, why MPs will receive more than a lakh of rupees as their pension.
No doubt that the step motherly treatment given to GIC employees is deplorable but has any body bothered about the retired employees? Do they not deserve the pension enhancement as the working employees are getting wage increase after every 5 years. Why can’t in-service employees link the pension enhancement in their demands during negotiations as a complete package. Every body has to retire one day.
It is deplorable on the part of the Mgmt./Govt. to offer a lesser wage hike as compared to LIC & Banks, especially when there is no NPA in lnsurance Sector. Before opening up the sector to Pvt. players, govt. earned in crores by way of Dividend & Taxes.
Salary and perks to the elected representatives should be strictly based on performance. With regards to the performance of employees of PSGIC, let government stop instructions to General insurance companies to settle claims without scrutiny during natural calamities etc. No interference.
Govt has bailed out these companies earlier
Asking for parity with LIC is absurd.
When inflation is hitting everyone why backing these people.
It is going to be met by the common man and the poor.
Gst on rice milk etc is because of theses inefficient companies.
They never pay higher commission for Agents and brokers
Efficiency is not at all linked.
Even, Monthly analysis of Profit and Loss account is not drawn.
Leave alone provisioning on monthly basis.
There is no accountability and the AG etc audit doesn’t delve into the lapses of the management.
They don’t employ Top persons from IIM etc
Lateral entry for govt PSUs must be tried first
Let the FM adopt one PSU per qtr for turning around even with the Modi Magic .
Unfortunately, we have a FM who can only go to fight and pull up collector for non display of PM’s photo
The parliament should question and roast her over inefficiency as people’s money is squandered.
The 56 inch should reserve it’s generosity for poor man rather than for these jokers
How comments are given without actually studying in-depth of GIC performance?
Every year only PSUGICOs pays dividend to govt.not the private ins.co.
Uttarkhand, Kerala and Chennai floods besides Corona claims, the role and contribution of PSU ins.cos employees contribution are matchless.
From 5 crore share capital, now each cos GDPI is around Rs 14000 to Rs 17000 cr and NIA crossing Rs 33,000 cr.GDPI. If you look MACT Compensations, crores of rupees are being paid for years.
Similarly, crop losses, health claims loss etc.
Only Govt.owned PSU responds to the social needs of poor such as crop insurance, janatha PA insurance etc. as per directions of govt.
From 2 lac employees in all 4 psus now it’s only around 45000. Each officer is toiling like anything. We are not doing deposit insurance to show profit all the time. We are Risk managers covering risks besides taking care of welfare of the society.
There are 4 audit checks besides CAG audit as well which no pvt sector insurance cos have. So pls don’t compare and stop the legitimate and meaningful wage revision pending for 5 years.