The Joint Forum of Trade Unions and Associations (JFTU) in Public Sector General Insurance (PSGI) Companies having around 58,000 members unanimously rejected the offers given by the General Insurer’s (Public Sector) Association of India (GIPSA) management.

The GIPSA management offered 7% hike from the current date or 5% hike from current date and 2% arrears w.e.f. August, 2017.

The long pending wage revision talks between the General Insurers (Public Sector Associations of India) and the check-off qualified unions in the Public Sector General Insurance companies meeting held on June 22. The wage revision for the employees was due from August 2017.

All the Unions and Associations rejected the offer calling it disgraceful, demotivating and humiliating offer of wage revision and demanded wage parity in insurance sector not less than the wage revision in LIC.

The 18 constituents of the Joint Forum of Trade Unions and Associations held their meeting recently and discussed the wage revision offer made by GIPSA. The constituents condemned the approach of DFS and GIPSA Companies in dealing with their workforce. JFTU constituents decided to write to CMDs/GIPSA and DFS appropriately giving them 7 days time to resolve the issues and come forward with a respectable offer at par with LIC. The JFTU constituents will meet on June 30 to evaluate the situation and decide rigorous Trade Union action including strike / indefinite strike, if required.

“It is a matter of record that on dated April 4, 2019 the then GIPSA Chairman Girija Kumar and other CMDs had categorically assured that whenever the wage revision will be finalised it will be made effective from August, 2017 and it will be better than that of LIC,” said Prashant Dixit, General Secretary, General Insurance Employees’ Union, Western Zone & Convener JFTU Nagpur Region.

Dixit also said that the PSGI companies 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 even during the time COVID-19 epidemic.

The unions said that the management and the Department of Financial Services (DFS) have shown their utmost insensitivity to the most genuine demand of settling wage revision pending for the last 59 month, increase in NPS contributions of 14 per cent, improvements in family pension and other important issues.

The employees and officers have been working in adverse situations as the DFS and regulator have failed to ensure a 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.

“At number of times, the PSGI companies worked without full time Chairman cum Managing Directors (CMDs) and full time Directors,” Dixit added.