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Friday, June 25, 2010

60 glorious Years of AIIEA & GIC Wage Revision and Promotion Policy Developments

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------------------------------------- Copy of Standing Committee Circular No.SC/006/2010 dt.22.06.2010 Reproduced AIIEA ENTERS INTO THE 60TH YEAR OF ITS GLORIOUS EXISTENCE ON JULY 1, 2010 On 1ST July 2010 our great organization, All India Insurance Employees’ Association enters its 60th year of glorious existence. Founded by the great leaders like Com. Chandrasekhar Bose, Com. Sunil Maitra and Com. P.T.Donde, the AIIEA became synonymous with struggle and advancement. Towering personalities like Com. Saroj Chaudhuri and Com. R.P.Manchanda developed AIIEA into a homogeneous and strong organization capable of meeting the challenges from within the industry and from the ruling classes. Com. N.M.Sundaram and others moulded it into a powerful weapon for meeting the aspirations of the employees and at the same time a weapon for protecting the public sector insurance industry in the era of imperialist globalisation. If today the public sector insurance industry is in a position to stand up to the challenges thrown by the opening up of insurance sector and maintain its supremacy, it is due to the untiring efforts put in by thousands of the members, cadres and leaders of AIIEA. 1st July 2010 should be celebrated to take the message of AIIEA to the employees once again. We suggest that on 1st July 2010, the units across the country hoist the flag of AIIEA, take the pledge to strengthen AIIEA and conduct other activities involving the employees recalling the glorious traditions and achievements of AIIEA. WE TAKE THE PLEDGE that “We shall cherish the dream that is the AIIEA; We shall welcome the dawn that is the AIIEA; We shall not allow butchers to kill our child that is the AIIEA; We shall fight all attempts, overt or covert, to weaken the AIIEA; We shall in loyalty and in allegiance cherish the AIIEA, Protect it as the apple of our eye and nurse it and nurture it, For the AIIEA has stood us in good stead in the past;

So it will in future too.” Taxability of Gratuity Central Board of Direct Taxes (vide notification no.43/2010 F.No.200/33/2009-ITA.I dt 11.6.2010) has approved notification of ten lac rupees as the maximum amount of Gratuity entitled to exemption under sub-clause (iii) of clause (10) of section 10 of the I.T. Act 1961, effective 24.5.2010. This follows the amendment to Payment of Gratuity Act and the notification thereunder increasing the maximum amount of Gratuity payable under the Act to Rs.10 lacs effective 24.05.2010. PS General Insurance Companies march ahead *Paying back and Reaping benefits* -- thus characterised the media of the event marking the handing over of the Dividend cheque of Rs.142 cr. to Hon. Finance Minister Pranab Mukherjee by the CMD of United India Insurance G. Srinivasan at New Delhi on 11.06.2010. NIC’s profit up at Rs.269 cr: National Board has adopted its accounts for the year 2009-10 on 9.6.2010. Highlights: Robust growth of 8.07% in GDPI – Rs.4625.17 cr. (prev. yr. Rs.4279.87 cr.) Profit Before Tax Rs.268.59 cr. (prev. yr. (-)Rs.133.53 cr.) Net profit PAT Rs.219.89 cr. (prev. yr. (-)Rs.138.68 cr.) Dividend to Govt. proposed Rs.43.98 cr (@ 43.98% of paid up capital of Rs.100 cr.) (prev. yr. Nil)
GIPSA reminded of their commitment for early wage deal After the 8th May 2010 discussions, there has been no communication from the management excepting sending us a copy of the Record Notes of the Discussions. We have reminded the management of their commitment to work out improved scales and allowances and urged for early resumption of talks with improved offers. GIPSA has sought our views on the proposal to change the format of the Competitive examination for promotion to the cadre of AO under para 13.2, from the present subjective to objective type, from the promotion year 2011. We have asked for details of their proposal welcoming any progressive change. We have also reminded the management of their commitment to have an exclusive discussion on promotion policy. Copy of AIIEA’s letter dated 20.06.2010 to GIPSA in this regard is appended herein for your information. With greetings, Yours comradely, Sd/-J. Gurumurthy SECRETARY Letter addressed to CEO, GIPSA dt.20.06.10 enclosed hereto.
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June 20, 2010 The Chief Executive, GIPSA, New Delhi. Sub: Record Notes of 8th May 2010 Discussions and Suggestion on Format Change for Competitive Examination (Para 13.2 of SCS Promotion Policy) This refers to your mails on the above subject. We have received a hard copy of the Record Notes of Discussions of 08.05.2010 by post. There was an error (file damaged) in the soft copy sent by you through e-mail and hence it could not be opened. We request you to send a soft copy by email. Wage Revision: In the Record Notes of Discussions, it is pointed out that the Chairman observed that ‘it is not the structured meeting and therefore only issues specific to wage revision need to be discussed’. But, the Record Notes concentrated more on the submissions on other issues and the focus on the specific issue of wage revision has been shortened. However, we are sure you would have taken further steps to work out improved scales as was the thrust given in the 8th May meeting. The Chairman had highlighted that the ‘important aspect that is considered for wage revision was environmental factors’ and he added saying that ‘we take it as an investment in our human capital and we are hopeful you would give us due return through improved productivity following motivation resulting from the wage revision’. He further said -- ‘In conclusion, I can assure all of you that our pay package will be at par with others in the financial sector. We are looking forward to move ahead with this positive note.’ This statement of the Chairman was echoed by the other executives with the observation that ‘all efforts will be made for securing wage revision for the employees at par with other sister institutions in the financial sector’. The reference was obvious. In fact, a case was made out that GIPSA should work out scales and allowances better than even LIC. We hope you are in the process of working out improved scales and other allowances. Needless for us to add that certain non-core benefits such as, improvements in LTS, Housing Loan, Vehicle Advance, Allowance for PH, Advance for Natural calamities, etc., which were residual issues of the last wage revision (and have already been cleared in LIC) require clearance by GIPSA independent of the current calculations/costing.
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Promotion Policy for SCS: This refers to your mail seeking our views on change in the format of competitive examination under para 13.2. – from subjective to objective type. We welcome any progressive change in the Promotion Policy and you may send us the considered views of the GMs(P) meeting on this score. Whilst on this, we recall the representations of the Unions/Associations for a review of the New Promotion Policy and for an exclusive discussion thereon based on the experience of its implementation in the past two years. An exclusive discussion on Promotion Policy was also appreciated and agreed upon. The following are some of the issues which require to be addressed :
 fixing regular time schedule to conduct promotion exercise
 determination of cadre strength norms (presently, in the name of following some percentage factor, lesser and lesser no. of vacancies are declared)
 norms on posting on promotion
 reservation for PwD in promotions to the cadres of Asst & AO
 the mandated identification of posts which can be performed by VH & other PwD
 solution to problems arising out of employees selected for promotion to two cadres in the same exercise (to the cadres of Sr. Assistant and also AO)
 need for restoration of contingency reserve
 filling up of unfilled vacancies, especially under para 13.2, by calling for volunteers from other surplus zones
 provision of answer sheets to candidates (13.2 competitive examination)
 mechanical application of debar clause for non-acceptance of promotion – need to revisit the provision
 protection of gross emoluments on promotion to higher cadre
 reckoning of stagnation stages for the purpose of fixation
 leased accommodation facility for promotee Assistants
 identification and distinction between academic and technical qualifications
 removal of qualification criteria for eligibility to appear for competitive examination under para 13.2
 declaration of marks scored for WR
 system of communication on below-average rating in WR
 present position on agreed running scale, changes in ACPS provision (para 25) etc.
The companies plead inability to have any discussion on Promotion Policy since a uniform view is required to be taken by all companies and hence they opined a meeting at GIPSA level will be desirable and purposeful. This may be considered at the very earliest. Thank you. Yours faithfully, Sd/-J. Gurumurthy SECRETARY