Performance-linked wage revision for PGIC staff

Outcome of the wage meet

- Arrears to be paid from the due date to all employees

- There will be 100% neutralization of DA, which is fixed at 0.08%, HRA, CCA, FPA, transport allowance and qualification allowance on the line similar to LIC

Mumbai: The next wage revision will be based on the performance of each company at various levels. The GIPSA management came out with an offer of 12 per cent increase on total wage bill, merger of 100 per cent of DA as on August 1, 2017 to the basic and thereafter loading by 10 per cent on it. Arrears to be paid from the due date to all employees. There will be 100 per cent neutralization of DA which is fixed at 0.08 per cent, HRA, CCA, FPA, transport allowance and qualification allowance on the line similar to LIC.

The meeting of GIPSA management of PSGI Cos/GIC (Re) was held with all checked off qualified Unions/Associations in New Delhi on August 04. The companies were represented by the CMDs & GMs.

Two office bearers of each checked off qualified unions were invited by the GIPSA management and attended the same. Suchita Gupta, Chairperson GIPSA and CMD, NIC initiated the meeting.

The meeting began with formal welcome and exchange of pleasantries. A brief presentation was made by Anjan Dey, CMD, Oriental, on behalf of the GIPSA management in regards to business figures, combined ratio, solvency margin, capital infusion, wage bill of the companies and other financial performance of the companies.

He further informed that the offer being made was based on the commitment made by the CMDs to the government to reduce the losses in the next three years and to attain improvement in the results. The pending wage revision effective from August 1, 2017 is uniform in all PSGI companies.

GIEAIA along with all unions and associations appreciated the efforts made by the GIPSA management as against earlier offer of 7 per cent hike from current date or 5 per cent from current + 2 per cent with arrears from the due date.

The Association stated for further improvements to ensure parity in insurance sector and to come out with improved offer at par with LIC. It asked the management to share the data in regards to the dividends, tax collected through GST & amount of claims paid by all PSGI Companies under the social schemes launched by Govt.

It was also pointed that the policy decisions affecting the health of the companies are taken by the Govt/corporate management and the employees and officers have become victim of such policy decisions. GIEAIA raised the issue of recruitment, running scale, 14 per cent employees contribution to NPS, improvement in Family Pension at 30 per cent, Pension option to left out TAC & LPA employees, to protect and strengthen the autonomy of PSGI Companies urging the GIPSA management for timely solution of these issues.

Talking to Bizz Buzz, Trilok Singh, general secretary, GIEAIA said: "We also raised the issue of improvement in non-core benefits and to have detailed discussions on important issues concerning the industry."

GIEAIA expressed its strong opposition on the performance linked wage revision in future and stated that this is irrational/hypothetical and will lead to adventurism and apprised that the wage revision should be on the basis of the performance of the industry as a whole as it is happening presently.

The Chairman GIPSA and all CMDs also addressed the meeting and stated that the offer made is in the most difficult times and requested unions/associations to submit their inputs within a week's time for placing the same before the authorities in DFS. The meeting was held in very cohesive and cordial atmosphere and concluded on a positive note.

A meeting of JFTU constituents will be held soon and the joint letter will be drafted and same will be sent to GIPSA management with its detailed observations/demands and suggestions for further improvements.