PSGIC unions against performance-linked wage

Mumbai The Finance Ministry will be reviewing the Performance-Linked Wage Revision for PSGIC staff in near future. The matter was discussed during a meeting held by the public-sector general insurance companies (PSGIC) trade union leaders with the FM in New Delhi on August 8.

Talking to Bizz Buzz after meeting with FM, Trilok Singh, General Secretary GIEAIA, said: “It is with utmost respect that we wish to raise our concern regarding the productivity-linked wages that were notified in the last wage revision. We believe that these wages might not be practical, considering the nature of insurance writing, back-office services, and other matters that require intricate application of mind and expertise.”

We sincerely believe that emphasizing quality over quantity of work would serve as a more effective approach, he said.

A delegation led by Binoy Viswam, Chairman of GIEAIA, and comprising Trilok Singh, , General Secretary GIEAIA, Darshan Kumar Wadhwa, Secretary General, GIEAIA Class-1 and others met Honorable Finance Minister, Nirmala Sitaraman in New Delhi recently. During the meeting, the delegation discussed several important matters. They include withdrawal of Performance-Linked Wage Revision Clause from the Wage Revision Notification 2022, merger of PSGICS, recruitment in all cadres. Some of the other issues discussed during the meeting include improvement in NPS and Family Pension and strengthening of PSGICS.

The PSGIC staff union leaders have expressed deep concern over the delay in increasing the employers' contribution to NPS @ 14 per cent and family pension @ 30%. This unfortunate delay has led to financial hardship for both the working employees who joined post-2010 and the aggrieved dependent families of deceased employees.

PSGICs have strategic importance and play their role in building nation’s economy. To safeguard and fortify these crucial entities, Unions demand that merging the companies would be a prudent step. This approach would not only enhance their collective strength, but also foster unity among them, ultimately leading to better service provision and improved insurance penetration across the nation.

In line with the government's financial inclusion policy, we urge for a more thoughtful approach to the closure of offices. More than 1,000 offices have been closed or merged by the management of the PSGICS, which has adversely affected access to insurance services for our valued customers, especially in rural and socially significant regions.

We believe that reevaluating the criteria for office closures and maintaining a balance between sustainability and growth is essential, says the letter of memorandum which had been submitted by the leaders during their meeting with FM. Finance Minister gave patient hearing to the delegation and assured that she would examine the matters raised. As the meeting drew to a close, a Joint Memorandum was presented to the Finance Minister on behalf of both wings of GIEAIA.