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Wednesday, August 4, 2010


  • Wage Revision in General Insurance heading towards finality
  • GIPSA offers satisfactory proposals
  • Final round of talks with AIIEA at Hyderabad on August 2

The 3-year long struggle to secure a good Wage Revision is heading towards finality.  In the discussion held at Mumbai on July 26, 2010, the management (GIPSA) came out with offers which meet the expectations and aspirations of the employees to a great extent.  The employees must have analysed the pay scales and offers on other benefits in a detailed manner and would have understood the massive progress registered through their struggle.

The joint session of the negotiation on July 26, 2010 was attended by Shri G. Srinivasan (CMD, United India & Chairman, GIPSA), Shri A.K. Singhal (Chief Executive, GIPSA), Shri M. Ramadoss (CMD, New India), Shri N.S.R.C. Prasad (CMD, National), Dr R.K. Kaul (CMD, Oriental) and Shri Yogesh Lohiya (CMD, GIC) besides GMs (P) and other officials of the four Cos. and GIC.  From the side of the Unions, AIIEA was represented by Com. P. Bagchi (Vice-President) and Com. J. Gurumurthy (Secretary, Standing Committee).  Similarly, the other check-off qualified Unions were represented by two representatives each.  The meeting started with a cordial and positive note with the formal introduction and expression of greetings to Shri G. Srinivasan, the new Chairman of GIPSA.  Initiating the discussion, both the outgoing Chairman Shri M. Ramadoss and incumbent Chairnan Shri G. Srinivasan mentioned that they were able to work out improved scales despite various constraints to make it the best the industry could ever obtain and expressed hope to reach finality.

Shri A.K. Singhal, Chief Executive, GIPSA, presented the improved offers of the management, which, inter-alia included improvements in all the scales (over May 08, 2010 offers) as demanded by AIIEA, abolition of stagnation stages for Sub-staff, Driver & RC and introduction of Running Scales for these cadres, increase in the allowances to the extent of
60% and more, doubling the quantum of Medical Lumpsum & HRA, increase in LTS limits from the present 2000 Kms. to 3000 Kms. each way, etc.  Full details of the management proposals are sent herein.
Responding on behalf of AIIEA, Com. J. Gurumurthy, at the outset, expressed happiness over the performance of the Companies in the financial year 2009-10 and on the continuing momentum of growth during the first quarter of the current fiscal.  We congratulated Shri G. Srinivasan on his assumption as the Chairman of GIPSA with effect from July 02, 2010.  We appreciated the effort of the management to workout improved scales, though there was hesitation initially.  We said that though the pay scales and allowances compared favourably with other financial institutions, GIPSA could still consider scope for further improvements.  In this connection, we quoted the submissions of Com. K. Venu Gopal, General Secretary of AIIEA, in the last round of wage negotiations that ‘going by the complex nature of General Insurance market, the fierce competition from private players and poaching of talents, General Insurance employees and officers deserve better scales than even LIC to retain the talent’.  We wanted the management to consider this aspect.

Among other things, we wanted the management to consider --
v  >improvements especially in Sub-staff scale,
v  >introduction of running scales at least upto Sr. Assistant scale,
v  >one more stagnation increment and reduction of its duration for Sr. Assistant to two years,
v  >improvement in allowances,
v  >removal of ambiguities in the classification of Cities for HRA and CCA,
v  >introduction of minimum quantum in HRA,
v  >technical qualification allowance for certain more courses such as MCA & Company Secretaries, >improvement in LTS rules with facility for foreign travel and encashment,
v  >increasing the dependant’s income to Rs.3500/- per month for LTS & Mediclaim coverage,
v  >introduction of and improvements in allowances for Project Areas, Paradip, Hill Stations, Kit, difficult areas and bad climate centres,
v  >graduation allowance to be made available without any cut off date and to class-IV employees as well.  >for quantum differentials in Medical lumpsum, basic pay range should be applied,
v  >all the revised benefits including Medical lumpsum, Hill Station allowance, Kit Allowance, etc. to be effective from August 01, 2007,
v  >introduction of certain other amenities such as provision of newspaper, lunch coupons, petrol reimbursement, etc., for Class-III & IV employees.
v  >the long pending demands for improvement in vehicle advance, housing loan, conveyance allowance for physically handicapped, Group Personal Accident, natural calamity advance, EDLI and other benefits,
v  >to work out a group insurance scheme for all classes of employees,
v  >to call for an exclusive discussion on Promotion matters so as to sort out the deficiencies as highlighted in AIIEA’s letter dated June 20, 2010,
v  >reckoning stagnation stage as a stage for the purpose of fixation on promotion.
v  >other pending issues such as restoration of compassionate appointment, upgradation of PTS to FTS, recruitment in the cadres of Class-III & IV and restoration of half-a-day CL.

On the demand for another option for Pension, we again emphasised that the issue be kept open for further discussion so as to bring all the employees (who are left out) within the ambit of General Insurance Pension Scheme, 1995.
We again wanted the management to seriously consider AIIEA’s demand for payment of PLLI to all employees at the industry level and cautioned them of the non-advisability of implementing the new PLIS which will lead to discrimination and discontentment.

It was a comprehensive submission from the side of AIIEA.  As demanded by AIIEA, the management agreed to call the full negotiating committees of Unions for individual Union-wise discussions between August 2 & 4, 2010 at Hyderabad.  The meeting schedule for AIIEA will be between 10.00 am & 11.30 am on August 2, 2010. After the individual Union-wise discussions with the other two Class-III & IV Unions, the management will hold a joint meeting with Class-III & IV Unions between 4.00 pm & 5.00 pm on August 2, 2010.

In fine, we said that the employees are the greatest asset of an institution.  It is the responsibility of the management to keep them happy and from the side of employees, we assured that there shall be more than adequate response to meet the challenges of the market and to take the industry forward.

The Secretariat of the Standing Committee met in the evening on July 26, 2010 to make a detailed study of the proposals made by the management.  Even while the Secretariat was in session, congratulatory messages started pouring in from across the country.  These messages clearly indicated the happiness and satisfaction of the employees over the achievement secured by the AIIEA.  The Secretariat, after a detailed analysis, came to unanimous conclusion that the offers are satisfactory.  These offers have been secured through relentless efforts of the organisation.  The AIIEA succeeded in uniting all the Unions in struggle which made it possible to bring about this massive achievement.  The Secretariat appreciated that we could identify certain areas where improvements need to be demanded and could place them before the management in the discussions.

Comrades, the present wage proposals are a great progress achieved by the AIIEA.  The AIIEA had promised the employees that it would make all efforts to secure a good wage revision and the AIIEA was confident of delivering on this promise.  It must be understood that this progress did not come easily.  It came through sustained efforts and organisational actions.  The progress achieved should be consolidated.  The AIIEA will make efforts to ensure that the wage revision reaches its finality soon and the employees taste the fruits of the struggle.  We congratulate all General Insurance employees for the unity displayed and the faith reposed in the struggles of the AIIEA which has enabled them to make unprecedented progress in wage revision.  

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