PSGIC trade unions too turn against KPI appraisal
10 central trade unions urged the Centre to keep the ‘unilateral imposition’ of key performance indicators (KPI) for general insurance companies (GIC) in abeyance; It comes close on the heels of the demand raised by union at GIC Re against imposition of KPI
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Mumbai: After the trade union at the General Insurance Corporation of India (GIC Re), now it is the term of the PSGIC trade unions to oppose government's plan to implement key performance indicators (KPI). Ten central trade unions (CTUs) have urged the Centre to keep the 'unilateral imposition' of KPI exercise for general insurance companies (GIC) in abeyance.
They feel that imposition of the KPI is severely affecting the health of the industry, the employees, agents, surveyors and the customers.
Some time back, the trade union of GIC Re had expressed its concern over KPI in its missive to the government.
Talking to Bizz Buzz, Trilok Singh, General Secretary, General Insurance Employees' All India Association (GIEAIA), says: "GIEAIA has been vehemently opposing the unilateral imposition of KPI and Restructuring in PSGICs and has conducted demonstrations throughout the country in National Insurance on September 15 and in Oriental Insurance on September 28. It has further directed its entire leadership to be on alert and prepare for bigger struggles in the days to come."
In a letter to Union Finance Minister Nirmala Sitharaman, the CTUs have said that the Department of Financial Services and General Insurers Public-Sector Association (GIPSA) management have started implementing the KPI process without the approval of the boards of the insurance companies. The CTUs have termed it as illegal and unconstitutional.
A GIEAIA delegation along with JFTU recently called Satyajit Tripathi, Chairman and Managing Director, United India Insurance Company Limited, and expressed their serious concern over KPI and restructuring and demanded that it should be discussed with all trade unions before any proposed changes under KPI in UIIC. The CMD has assured them to have discussions with them before any implementation process on KPI and restructuring.
They said imposition of the KPI is severely affecting the health of the industry, the employees, agents, surveyors and the customers, citizens as hundreds of offices are proposed to be closed or merged in the name of KPI exercise and restructuring.
"Besides, employees are restive that their long-term settlement is already delayed by 64 months. They have been promised a raise on par with LIC (15 per cent), but it has not seen the light of the day so far," the CTUs said.
They said the 'bell curve based performance appraisal' has already been understood as a failure and discarded by major organizations globally including many big multinational companies. This is being done on the suggestions of external consultants, who barely understand the intricacies involved and problems that may arise if such a system is implemented without detailed understanding, planning and a roadmap, the CTUs said in the letter.
The CTUs said they fully concur with the stand of sectoral trade unions that final report of the consultants on KPI should be discussed with all stakeholders before implementing it and KPI must be kept in abeyance till then.
Government seems hell-bent on completing certain tasks aimed at weakening the public sector insurance companies in order to facilitate their privatisation well before 2024, the CTUs said in a statement.
