Nirmala Sithraman,Union finance minister
The unions had asked the DFS and GIPSA to clear the pending Wage Revision at par with Life Insurance Corporation (LIC) without any condition or linking it with future “Performance Linked Wage Revision’’ before Diwali and then to come out with the new proposal for wage revision with effect from 2022-23
New Delhi:
The government wants the unions of the PSU general insurance(GI)industry to accept “Performance Linked Future Wage Revision’’ before it approves the pending wage revision along with arrear, since Aug 2017, for the industry.
In a meeting on Friday, among the officials of department of financial services(DFS), GIPSA, the coordinating agency of four PSU general insurers and GIC Re, and recognised unions, Sourabh Mishra, joint secretary, DFS, categorically mentioned that finance minister Nirmala Sithraman wants an assurance from the unions for implementation of “Performance Linked Future Wage Revision’ before approving the pending wage revision for the industry.
The DFS officials informed the unions that wage revision could be released within five days if union gives assurance that they would allow smooth implementation of “Performance Linked Future Wage Revision’ in the industry.
Asia Insurance Post had reported on Thursday that the GIPSA had called for an urgent meeting of unions at the conference room of department of financial services after Sitharaman wanted the unions to agree for a “Performance Linked Future Wage Revision’ before she approves the final wage revision proposals of the industry.
However, the unions responded by reminding the earlier assurance of Mishra and the GIPSA towards sharing the consultant report prepared by Ernst Young(E&Y), which has been hired by GIPSA to turn the PSU GI industry into agile as well as profitable and has recommended `Performance Linked Future Wage Revision’, to enable them to study the consultant’s proposals before its implementation.
The unions have further clarified that they were not against KPI(key performance indicator) being the sole criteria for assessing the performance and pay structure of PSU GI employees in future but these concepts need detailed and serious discussion.
Moreover, the unions had asked the DFS and GIPSA to clear the pending wage revision at par with Life Insurance Corporation (LIC) without any condition or linking it with “Performance Linked future Wage Revision’’ before Diwali and then to come out with a new proposal for wage revision with effect from 2022-23.
The unions had also raised its demand for merger of three companies- National Insurance Company(NIC), United India Insurance(UII) and Oriental Insurance Company(OIC) as per Budget Proposals 2018.
Mishra had asked the unions to share their views on “Future Wage Revision on Performance Linked’ with the GIPSA for the government’s due consideration.
Observers point out that the condition of `Performance Linked future Wage Revision’’ may not be accepted by the unions easily and will further delay the conclusion of ongoing wage negotiation for the industry.
The ministry had earlier 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.
In `Performance Linked Wage revision’ the performance assessment of each employee will be linked to the performance of the organisation along with his/her own performance, GIPSA had said earlier in a letter to the unions of the industry.
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, GIPSA had said.
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.
However, the unions had their reservations on the new proposals of the MoF and yet to give their consent to it.
It is now almost over a month when the ministry of finance(MoF) had finally rejected the demands of unions PSU GI for a wage revision on par with LIC and was expected to notify 12 per cent hike for the industry soon though unions had not agreed with the proposals.
With the 12 per cent hike along with five years of arrears, wage bill for NIC will be around Rs 2177 crore, Rs 2080 crore for New India Assurance (NIA), Rs 2135 crore for OIC and Rs 1752 crore for UII.
There will be a total outgo of Rs 8146 crore from all four companies for meeting wage revision expenses, said analysts.
The government last year had approved a 16 per cent wage revision with arrears for the employees of IPO bound LIC and had even finalised a hike of 15 per cent with arrears for the PSU banking industry in 2020.
Govt policies bound to increase our losses, otherwise we can earn handsome profit,
We should continue our fight for WR
It is not possible due to social responsibility and govt subsidised schemes without proper staff from many years.
Government should not impose implementation of government schemes through PSU insurers. Let us work in professional way like private sector companies.
Sir, the present Govt is not interested to continue the PSU GI Cos’ at all. Just for an example, Pvt GI Cos’ are giving total payouts for a Motor Vehicle Insurance Policy around 20-30 percent, while PSU Cos’ are bound to the same within 5-13 percent. Are all the Chiefs of IRDA, DFS and CCI are deaf and dimb ? No Sir, they are just Rubber Stamp under present Govt. Very soon all 4 PSU will face the music like BSNL. Those who are younger, better find another secure jobs, middle-aged should learn/upgrade new skills to survive and the rest others should took VRS with optimum benefits.
Govt is doing same with the PSU banks. They are forcefully selling their cheap political agenda through these banks and carrying out each and every step to make them loss assets so that they can easily privatise them.
Govt is not interested to continue Gen Ins industry in public sector so in the name of reforms it has ruined it and continuing the same. There is no motivational factor among employees due negative role of Govt.
PSU insurance sector will face the fate of HMT and other abolished PSUs earlier.There is no future of any career in India as merit and honesty have no space in Govt institutions.
If govt was keen to improve profit and performance of employees, they would have done so by implementing similar structure in ministry first and then in other organisations. In such environment of competitiveness, I guess no one would have disagree to kpi. But kind humiliation and disrespect this govt is showering upon so many people, families…….it is going to come in full circle.
The Hon’ble FM should have taken forward the Budgetary Proposal of late Sh.Arun Jaitleyji to merge 3 PSGICs, excluding NIA. That Proposal was dumped abruptly even after the Boards of these 3 Companies had adopted the merger Proposal .
It could have resulted in many synergies besides economies of scale.
Recent developments indicate that WR is not going to finalized in Coming Months until and unless all the Checked off Unions unitedly thinks over indefinite strike including GIC R unions .
WR at par LIC also depends upon the role of trade unions in coming future .
Creation of strong joint forums are the need of the days at this juncture without which nothing is going to happen in the present situation.
These are my own views and without prejudice.
With Sincere Greetings to all of you.
Many State / Central run Institutions / Financial Institutions are currently in red. Nowhere there is Performance based wage ? Those accountable should also get the same treatment. In the name of reforms this is move to ruin PSU.
PSU GI companies have given lots of money by the way of dividends for several decades to the Government. PSGICs have also invested in Government projects in the interest of the nation. Government imposing its scheme in the name of welfare of the nation ultimately ruining / exploiting the assets of the nation by pressurising the PSGICs to do business without any profit. And now after burdening with such loss generating business they are asking for profit from these PSUs. Government forgot the basics that PSU were never meant for profits but for the welfare of the community but now Government thinks PSU must generate profit or they will privatise the PSUs which will ultimately result in loss of public, who are getting services from these PSUs at meagre cost since many decades. If no PSU will remain in future as per Government intention then Private players will take over the industry and make profit oriented policies which will be at the cost of the public. Government should not forget that we are public limited company covering unlimited liability and though sustaining and leading the industry since very long.
Sir
Govt is not doing correct thing by putting conditions with wage revision. We should also check ourselves that are we prepared to meet the current challenges?
Implementation of govt policies by psgics have worsened financial conditions of these companies, and now they have to fight for wage revision pending more than five years.
From last 20 years government has appointed various consultants and paying crores of rupees for the improvement and suggestions but nothing has happened. The purpose of nationalization is for the benefits of citizens not to make profit.
The government and GIPSA are adamant and not taking into consideration of the root cause for losses. The government schemes are being implemented through PSU general insurers but not given any financial supports.