Public insurers may offer 17.5% hike in wages

The Government has agreed to meet the insurance employees' demand for a 17.5- per-cent increase in wages, though it remained non-committal on pension.
The Secretary General of the General Insurance Public Sector (Insurance Companies) Association, Mr A. K. Singhal, said “We have already offered a 17.5-per-cent increase to the employees.” Further discussions are due to held with representatives of the employees of the four public sector insurers on May 8, he added.
The Additional Secretary General of the National Confederation of General Insurers Officers Associations, Mr Vivek Saxena, said, “We will know what is offered only at the meeting next month.” Insurance employees have demanded a pension benefit as provided to the bank employees. Mr Singhal, however, ruled out pensions. He said, “Pension is not acceptable to the managements since it would weaken the balance sheets.”
Also conditions stipulated in the management agenda are not acceptable to the unions. They relate to compulsory retirement of employees, with no mention of any voluntary retirement scheme.
The last round of the VRS in the insurance industry resulted in the migration of skilled and experienced employees to the private sector. This time, the sources said. the managements were keen to avoid such mistakes.
So far five rounds of negotiations have ended in deadlock.
Unlike in the past, when the managements were represented by officers of the ranks of General Manager, the negotiations are expected to be handled directly by the Chief Executives of the four insurers - New India Assurance Co, United India Insurance Co, Oriental Insurance Co Ltd and National Insurance Co.
The sources said that the CEO participation in the wage discussions was prompted by the government which is keen to break the deadlock, ahead with reforms in the sector. The reforms included making the core business of underwriting profitable. Insurers are currently operating at negative underwriting margins with loss ratios as 120 per cent. This year the insurers are expected to make up the provision shortfalls of the past. Under Insurance Act of 1938, general insurers are expected to credit at least 50 per cent of their incremental premiums to technical reserves - Unexpired losses. The sources said that after these provisions are deducted, insurers also were likely to end this year with red-lined net underwriting incomes.

Public non-life insurers’ employees to strike

Around one lakh employees of four Indian government owned non-life insurers will strike work for two hours March 31, demanding 40 percent pay hike and an option to join pension scheme. They claim they have “done well and the management should reciprocate”.All the unions in the four companies — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited — called for a two-hour walk-out from work places preceding the lunch recess March 31, the last working day of the current fiscal.
The unions warned of serious action if their demands were not met.
“The four government owned non-life insurers have clocked a gross premium of Rs.18,222 crore up to February 2010 this fiscal, logging a growth of 12.21 percent over the corresponding period of the previous year. On the other hand, leading private non-life insurers have logged negative growth,” J.Gurumurthy, secretary of All India Insurance Employees Association (AIIEA), told IANS Thursday.
He said the wage talks are still at the level of general manager level of the individual companies, steadfast on their offer of 17.5 percent salary hike, made at Kolkata Dec 22 last year.
The Governing Board of General Insurers Public Sector Association (GIPSA) Feb 5 informed the unions that it did not find it possible to improve the offer.
After the rejection of the offer of 15 percent increase, the GIPSA came up with a revised offer of 17.5 percent.
The AIIEA had demanded 40 percent wage hike so that there is pay parity with that of the private sector.
“The chairman and managing directors seem to feel that it is not their responsibility to find a satisfactory solution to the wage demand of the employees and officers in consonance with growth, productivity and competitive environment,” Gurumurthy added.
He said wage talks were resumed in Life Insurance Corporation of India (LIC) after the unions rejected the 17.5 percent hike offered.

AI G I F W A
To
GIPSA Chairman and All CMDs
Dear Sirs, Sub: Notice of Agitation on Wage Revision and related issues and other pending issues Ref: our letters AIG/HQ/GIPSA/118 dated 1 January 2010 and AIG/HQ/GIPSA/126 dated 25 February 2010

We have been repeatedly bringing to your attention the larger issue of wage revision effective from 1st August 2007. The approach of GIPSA and its member companies has been totally indifferent to the reality. Considering the present growth level and the future projections in our industry, the wage parity with private sector, the wage revisions in other Public Sector Companies, wage increase for Central and State Government employees and the increased work load in the present scenario, the offer of 17.5% in wage bill was rejected jointly by all the Unions on 22nd December 2009 being inadequate. Though it is nearly three months since last round of discussions, you have failed to come out with a realistic offer. We are repeatedly demanding rectification of anomalies to Marketing Cadre created by 2003 Amendment to our Rationalisation Scheme for which there is no proper response from you. The last Amendment to our Rationalisation Scheme in 2008 was made with a need to avoid contempt of Supreme Court Order but the Administrative guideline was not followed as envisaged. Despite our repeated protests the issue of disputed excess cost recovery is still pending. Those opted for administration as per the 2003 Scheme are yet to be recognised and given the job allocation as envisaged in the Scheme. While we accepted your initial inability due to pending Court Cases, it is two years since the Supreme Court pronounced its verdict. There is no response to our repeated reminders. Again we are demanding up gradation of Grade II Development Officers (administration), the failure of which has put them in a pathetic situation of languishing at below the Record Clerk salary level for the past six years since only 7 slabs in the time scale. These issues have been submitted in detail in our Charter of Demands as well presented during the discussions and followed with our minutes of the meeting. TO PROTEST THE ADAMENT ATTITUDE OF THE MANAGEMENT IN NOT RESOLVING THESE ISSUES THROUGH MEANINGFUL DISCUSSIONS, ALL INDIA GENERAL INSURANCE FIELD WORKERS ASSOCIATION HEREBY GIVE NOTICE OF AGITATION DECLARING TWO HOUR WALK OUT STRIKE ON 31 MARCH 2010 FROM 11.30 AM TO 1.30 PM. We call upon the Management to engage in meaningful dialogue to end the impasse failing which AIGIFWA will be forced to intensify the agitation for which you will be solely responsible.

Insurance employees protest for immediate rivision of wages

The Insurance Corporation Employees Union (ICEU) under the banner of All India Insurance Employees Association has staged a dharna outside the Life Insurance Corporation of India (LIC) Divisional Office here demanding immediate revision of wages. Addressing the agitating members yesterday, ICEU general secretary B B Ganesh said wage revision for LIC was long pending since August 2007 and the Corporation was showing a very indifferent attitude on the issue despite its tremendous growth during this period. The total premium Income of LIC has increased from Rs 1,27,782 crore in 2006-07 to Rs 1,57,186 crore in 2008-09 and the total number of polices has increased from 12.58 crore to 26 crore, he said. He alleged that the Centre, instead of intervening to solve the issue was creating hurdles by imposing new conditions like new pension scheme for employees joining after April, 2009. These counter conditions are not acceptable to the employees, he added.

LIC officers strike over wage issue

The Federation of LIC class-I officers' Association has gone on a nation-wide strike on Thursday to protest against non-acceptance of their demands on the wage revision by the management of the Life Insurance Corporation.

Some officials had also gone on a hunger strike on Wednesday in Hyderabad and were forced to end it on police intervention.

"Except Mumbai, the strike has been successful in the rest of the country," claimed R Gunasagar, president of the Federation.

Prominent Congress leader Oscar Fernades is the chairman of the federation. Gunasagar said while the government is insisting 17% rise in the wage, the Federation is demanding the same hike as sixth pay commission.

"Our own management is even refusing to send our demands to the ministry of finance and is insisting that we should accept 17% hike like the banking industry did, That is not clearly acceptable to us," he said.

Gunanasagar said LIC only incurred 2.33% as administrative expenses and pays currently pay Rs 1000 crore as dividend to the government on its Rs five crore investment in 1956.

Gunansagar said the the wage package of employees of the LIC cannot be compared with that of the banking industry as latter has been given pension benifits over the 17% salary hike.

GENERAL INSURERS’ [PUBLIC SECTOR] ASSOCIATION OF INDIA

To,

All check-off Qualified Unions/ Associations of Member Companies

Re : Wage Revision

Please refer to the discussions we had with you in the 5th round held at Kolkata on 22nd December, 2009, at which, on behalf of our Member Companies, we had floated an improved offer of overall 17.5% (including non-core items) revision in the wages with effect from 01.08.2007, (subject to the approval of the Government) along with an organizational agenda aimed at improving the productivity to the requisite level necessary to absorb the impact of the Wage Revision having regard to the statutory limits on the management expenses.

We had requested you to appreciate the offer as also the financial constraints despite which it has been made to you with a view to motivate the employees for contributing further in improving the productivity of the Companies and sought your consent to the same for our approaching the Government for approval thereof and issuance of requisite Notification. While appreciating the improved offer, you had, nevertheless, made certain observations, inter-alia, seeking to explore the possibilities of further improvements, if at all.

Your observations were submitted by us to the Governing Board of GIPSA in its Meeting held on 29th January, 2010. After threadbare deliberations, particularly, looking to the financials of the Member Companies, the Board did not find it possible to further improve the offer made before you in the 5th round as indicated above and desired us to reiterate the same to you.

We would request you to kindly appreciate that this is the maximum the Companies could afford with the given financials and come forward with your consent to the same to enable us to proceed further in the matter.

JOINT ACTION COMMITTEE

Unions/Associations decide on Joint ActionTo demand immediate resumption of wage talks with improved offersTo break the silence of mgt & to say No to mgt agendaThe management has been keeping silence since the last round of wage talks held at Kolkata on Dec 22 when all the Unions/Associations rejected the offer of 17.5% and demanded improved offers delinking management agenda. As per the joint call of the Unions /Associations, demonstrations were held in front of HOs of Cos & in RO centres on Jan 20, 2010 to press for resumption of wage talks with improved offers. Joint Memoranda were submitted to CMDs/GMs of the Cos.A wider meeting of representatives of the Unions/Associations (checkoff qualified & non-checkoff qualified) was held at Chennai on Jan 20, 2010. It was decided to spread the joint movement across the country with the following immediate programmes. Jan 29, 2010 (Friday) -- Joint Demonstrations in all centresFeb 9, 2010 (Tuesday) -- Badge Wearing & Submission of Memorandum to Officer-in-chargeFeb 23, 2010 (Tuesday)-- Dharna in big centresFurther programmes will be decided in the next joint meeting.

GIPSA offered 17.5% wage hike in 5th round wage revision discussion at Kolkata.We have demanded the cost relaxation and raised the issues such as the anomalies in running scale,promotion policy,Admin optees problems and other cadre problems.GIPSA will place our views to the management

JOINT ACTION COMMITTEE FORMED AND DECIDED TO JOINTLY PURSUE THE ISSUE OF "WAGE REVISION" WITH MANAGEMENT FOR AN EARLY AND SATISFACTORY SETTLEMENT- AGIFWA