GIPSA to meet unions to sort out their differences over E&Y report
E&Y after being selected by GIPSA as a consultant for restructuring 4 PSU general insurance companies had submitted its preliminary report
image for illustrative purpose
Mumbai: Even as differences have started brewing up between trade unions and GIPSA over Ernst & Young (E&Y) recommendations, GIPSA will meet trade unions on January 12. As desired by the chief labour commissioner, government of India, the GIPSA, the official coordinating agency of PSU general insurance companies and GIC Re, has called for a meeting of all recognised unions across the industry to sort out any misunderstandings between management of companies and unions over the restructuring of PSU general insurance companies. Earlier, on Monday, the unions of PSU general insurance sector had decided to defer their January 4 strike as a result of conciliatory meeting with the management of the companies under the guidance of chief labour commissioner, government of India.
E&Y after being selected by the GIPSA as a consultant for restructuring four of PSU general insurers by suitably streamlining their business processes for profitability, had submitted its preliminary report. The unions had alleged that recommendations are being implemented without consulting them.
On Monday, under the banner of (JFTU), the unions participated in conciliation meeting with the management under the guidance of chief labour commissioner (CLC). Various arguments took place in the meeting from both sides and finally CLC advised the managements to give proper bilateral opportunity for discussion with the associations within 15 days and take the suggestions, union sources said.
The unions had alleged that the proposed restructuring would weaken the public sector entities. The JFTU (Joint Forum of Trade Unions) said that in the last couple of years about 1,000 offices, mostly in tier-II and tier-III cities, have already been closed.
This unilaterally forcing massive closures and mergers of hundreds of offices in public sector general insurance companies (PSGIC) are not only affecting the policyholders but the citizens at large, it said, adding that it is also giving undue favour to private insurance companies to capture the market in tier-II and tier-III cities. As advised by the CLC, the trade unions have been asked to nominate two representatives from their respective unions for the meeting. Also, they have been requested by GIPSA to ensure that there is no rotation of representatives during the meeting. The name, designation and place of posting of the two representatives nominated for the meeting may have to be informed to GIPSA by January 09. It is to be noted that the 50,000-odd PSGIC staffs had deferred their nationwide strike, which was slated for January 04, on intervention of CLC.
Talking to Bizz Buzz, Trilok Singh, Convener, JFTU, said, "We under the banner of JFTU participated in conciliation meeting with the management under the guidance of chief labour commissioner. Various arguments took place in the meeting from both sides and finally CLC advised the managements to give proper bilateral opportunity for discussion with the associations within 15 days and take the suggestions."
