GIPSA informed deputy central labour commissioner on Thursday that the performance of all PSU general insurance companies has improved and they were are awaiting DFS go ahead for calling unions for wage revision negotiation. In turn, deputy CLC advised the DFS and GIPSA officials to expedite and conclude the process, said industry sources . 

New Delhi: After banking and Life Insurance Corporation(LIC), hopes for the commencement wage negotiation and possibility of a reasonable hike for around 38,000 workforce of PSU general insurance industry, consisting of six companies, including GIC  Re and Agriculture Insurance Company(AIC) since Aug 22, is looking now bright.

Deputy central labour commissioner, on Thursday, had held a conciliation meeting for the unions of the industry along with the officials of department of financial services (DFS ) and the GIPSA, the official coordinating agency for six general insurance companies, to expedite the commencement of the wage negotiation process for the PSU general insurance industry.

Last wage revision for the PSU general insurance industry, with a hike of around 10-12 per cent, was finalised in Oct 22 for five years retrospectively since Aug 17.

Though, as a matter of routine, the wage negotiations for PSU general insurance industry begin soon after banking industry and LIC, there is a delay  due to some technical reasons as stipulated by the DFS during the finalisation of the last wage revision, that required assessment of Key Performance Indicator(KMP) of all the companies before finalising any future wage hike. Also, the KMP will will decide the quantum of salary revision for employees of the companies.

According to sources in the industry, KMP achievements duly audited for FY 24 has already been submitted to the DFS which is reviewing them.

Earlier, the DFS had indicated that it was positive about starting new wage negotiations.

GIPSA also informed deputy CLC on Thursday that the performance of all PSU general insurance companies, led by GIC Re, has improved and they were are awaiting the DFS green signal for calling unions for wage revision negotiations. 

Deputy CLC advised the DFS and the GIPSA officials to expedite and conclude the process, said the industry sources. 

Meanwhile, companies like GIC Re and New India Assurance have already started providing for future pay hikes for their employees in their Q4FY24 balance sheets.

Next date of conciliation meeting of all stake holders has been fixed on 6th August.

The unions are demanding wage revision parity with LIC along with a 14 per cent  employer contribution for NPS and minimum 30 per cent family pension scheme(FPS). 1.10 lakh employees of LIC had received a 17 per cent hike in their latest wage revision concluded in May.

The unions will also submit justification of their demands in the next 10 days,