PSGICs' unions remain firm on 15% wage hike

Mumbai: The wage revision talk, which was held by General Insurance Public Sector Association (GIPSA), an umbrella body of all the public-sector general insurance companies (PSGICs), with the leaders of all the checked-off or recognized associations which was held on June 22 in a virtual mode, remained inconclusive.

The associations want wage hike on the lines with that of LIC and ECGC which was at 15 per cent. Moreover, they are also demanding increase in company's contribution for PF for the NPS employees to 14 per cent.

Talking to Bizz Buzz, Trilok Singh, general secretary, General Insurance Employees All India Association (GIEAIA), and Convener JFTU Northern Zone, said: "The associations have been given seven days' time to make counteroffer in writing and submit white paper on it. In case GIPSA doesn't pay heed to our demand then we may go for an indefinite strike. We will take a call on our further action plan on June 30."

Vijay Agate, working president of General Insurance Employees' Association, Mumbai, who had attended the meeting, said: "GIPSA offered seven per cent hike in wages and five per cent from current date with two per cent arrears effective from August, 2017, which is the die date for wage revision."

However, the trade union leaders refused the GIPSA's offer. Rather, they demanded another offline meeting with fresh offer of minimum 15 per cent hike on par with LIC, he added.

The associations have referred to the records of previous meeting dated 4th April 2019 called by GIPSA at Mumbai where the then GIPSA chairman, Girija Kumar and all other CMDs categorically had assured that wage revision effective from 1st August 2017 will be even better than the PSGIC counterparts, mainly LIC.

The meeting ended with GIPSA Chairman and NIC CMD Suchita Gupta's note that no sooner the all associations come with their proposal, the GIPSA management will go to the Ministry for further Discussions.

The associations have pointed out various problems the PSGICs are currently faced with. The PSGICs have been giving huge dividends to the Government of India since inception and have been carrying forward all the government schemes of social uplifting with full zeal and dedication. During the time Covid 19 epidemic, the workforce have served the economy and the society as corona warriors for over two years.

During this period, loss of life of more than 500 employee and their family members happened. The unions spoke that the management and the DFS have shown their utmost insensitivity to the most genuine demand of settling wage revision pending for last 59 month, increase in NPS contributions of 14 per cent, improvements in family pension and other important issues.

It is a matter of record that the employees and officers have been working in adverse situations as the DFS and regulator have failed to ensure level playing field for PSGI Companies in comparison to the private sector Insurance companies. The unethical practices of the private sector and failure of regulator in controlling them has been detrimental to the business interests and performance.

Decision, on as per the proposal in 2018 Budget speech by the Finance Minister to merge the three Companies National Insurance, Oriental Insurance and United India Insurance have not been carried out. Status or withdrawal of the said proposal has never been notified in social domain. This has caused continuous doubts in the minds of clientele and intermediaries of these companies resulting into continuous loss of business, it is said.