Friday, November 23, 2012
Tuesday, November 6, 2012
AIIEA PHENOMINAL GROWTH
DAY BY DAY AIIEA STRENGTH INCREASING IN PS GIC
RAJASTHAN NEWS:
12 NEW MEMBERS JOINED AIIEA FROM NATIONAL,HANUMANGARH & SRIGANGANAGAR .
SIX MORE TO JOIN SHORTLY.
POSITIVE RESPONSE FROM UIIC, OIC, NIA.
EARLIER 7 MEMBERS ENROLLED WITH AIIEA IN NATIONAL SWAIMADHOPUR.
ALROUND APPRECIATION FOR AIIEA'S CONSISTENT EFFORTS TO SECURE ANOTHER
OPTION FOR PENSION,
IMPROVEMENTS IN PROMOTIONS
NON-CORE BENEFITS
RECRUITMENT ETC..
CONGRATS..........
J.GURUMURTHY
Monday, November 5, 2012
SUPPORT AIIEA - STRENGTHEN AIIEA
TO PROTECT PS GIC & THE EMPLOYEES LEGITIMATE RIGHTS
REMEMBER DECEMBER 14, 2012.
REMEMBER CODE NO.27
PLEASE GIVE YOUR LOA TO CODENO.27 .
WHICH PROTECTS NOT ONLY U BUT ALSO THE ENTIRE INDUSTRY TO PROTECT FROM FDI INCREASE, DISINVESTMENT AND BETTER WAGE REVISION WHICH IS DUE FROM 01.08.2012. PLEASE REMEMBER LAST TIME ALSO AIIEA ACHIEVED ACCORDING TO THE ASPIRATIONS OF EMPLOYEES SECURED GOOD WAGE REVISION. YOU MIGHT HAVE REMEMBERED THAT THE ASSOCIATION i.e., AIIEA
W: WHOLESOME
H: HANDSOME
O: OUTSTANDING
WAGE REVISION.
Mean while in a nutshell, it has also brought increased in Housing Loan, Festival Advance, Flood Advance, Vehicle Advance, PH Allowance, Running Scale to RC and Sub-Staff GSLI Increase etc..
The issues which are in Pipeline and expecting to ripen at the earliest.
1. Pension Option.
2. Increase in GTIS
3. Recuritment
4. Restoration of FPA which was withdrawn to RC and Substaff etc.
and manymore........
Rama Sarma SVS
General Secretary
VRGIEA
కామ్రేడ్స్
మీరు తప్పక గుర్తున్చుకొని A I I E A ను వచ్చే చెక్ ఆఫ్ లో బలపర్చండి.
1. డిసెంబర్ 14, 2012
2. కోడ్ నెంబర్ . 27
మీ గుర్తింపు లెటర్ ను 27 కి యిచ్చి A I I E A ను బలపరచండి.
Wednesday, October 31, 2012
FRONTLINE
Volume 29 – Issue 21 :: Oct 20 – Nov 02, 2012
INDIA’S NATIONAL MAGAZINE
From the publishers of THE HINDU
COVER STORY
United in opposition
VIKHAR AHMED SAYEED
It is imprudent to allow foreign capital greater access to and control over domestic
savings, says Amanullah Khan, president, All India Insurance Employees’ Association.
G.P. SAMPATH KUMAR
Amanullah Khan: “It is a myth that an FDI hike will benefit policy holders.”
AMANULLAH KHAN is the president of the All India Insurance Employees’ Association (AIIEA), a trade
union with 1.5 lakh members drawn from employees of public sector insurance companies. These
companies include the Life Insurance Corporation of India, National Insurance Company Limited, The
New India Assurance Company Limited, The Oriental Insurance Company Limited, United India
Insurance Company Limited and the General Insurance Corporation of India. The GIC is the sole
reinsurance company in the Indian insurance market.
In an interview given to Frontline in Bangalore, Amanullah Khan discussed the implications of the
proposed move to raise the foreign direct investment (FDI) limit in the Indian insurance sector to 49 per
cent from the current 26 per cent. Excerpts:
You have made it clear that the AIIEA is opposed to any move to increase the FDI limit in the
Indian insurance sector through the passage of the Insurance Laws Amendment Bill, 2008. Can
you explain why such a stand has been taken?
The AIIEA strongly opposes the FDI hike because the decision to increase the foreign equity limit has
been taken to placate and win the confidence of international finance capital. It will neither benefit the
Indian economy nor bring any benefit to the insuring public. Insurance, especially life insurance,
mobilises small savings of the people for long-term investments. It is therefore imprudent to allow
foreign capital greater access to and control over domestic savings.
The UPA [United Progressive Alliance] government is making all efforts to liberalise the financial sector
and place it in the architecture of global finance capital because of pressure from governments of the
Western world such as the United States, France, Germany and the United Kingdom. The financial
sector plays a very important role in the national economy. The AIIEA strongly believes that the socalled
insurance reforms, the Pension Fund Regulatory and Development Authority (PFRDA) Bill and
the Banking Laws Amendment Bill will harm the national economy. India weathered the 2008 global
recession because the regulations here did not allow it to deal with derivatives. But if it fully integrated
with international capital, it will not be insulated.
Finance Minister P. Chidambaram has stated that it is necessary to increase FDI in the insurance
sector as the benefits will go to the private sector insurance companies, which require huge
amounts of capital infusion. Do you agree with this statement?
No, I do not agree with his statement at all. It is not true that private companies are starved of capital for
their expansion. The 23 private companies in the life insurance sector and the 18 companies in the
general insurance sector have been operating across the country for the past 10 years. Together, they
have more offices than the public sector units. These companies have been promoted by big industrial
and financial houses that have abundant resources at their command. They also have the option of
raising capital through initial public offers (IPO).
The Parliamentary Standing Committee on Finance, headed by former Finance Minister Yashwant
Sinha, has also held that there is no case for increasing the FDI limit and that the insurers can look to
the domestic market if they need additional capital. Unfortunately, the unanimous recommendation of
the committee has not been accepted by the government.
What about the argument that the opening up of the insurance sector will enable the flow of
high-premium income into India?
The argument that the opening up of the insurance sector to foreign capital will enable the flow of a
significant portion of global premium income earned by the foreign partners of private companies into
Indian infrastructure has not been proved right. There has been no evidence in the last decade to
suggest that the foreign partners brought any global premium earned by them to India. To say that they
are suddenly going to bring in capital now is an absolutely hollow claim. The total capital employed by
foreign partners as at the end of March 2011 in the insurance sector was just Rs.6,650 crore. There is
no justification to allow greater access to foreign capital on the premise that large FDI flows will take
place. You cannot make development hostage to foreign capital when there are local resources.
Foreign companies will bring in some capital, but only to mobilise domestic savings.
The government itself has expressed concern that the private companies have not made any significant
investments in infrastructure as the share of the LIC alone in the total infrastructure investments made
by insurance companies is nearly 90 per cent. You must remember that no foreign company is going to
invest in India out of a sense of altruism. They are all out to invest for profit, and to expect that foreign
capital inflow will develop the Indian insurance sector and economy is unwise. FDI is a very poor
substitute for domestic savings.
Arguments in favour of a hike in FDI claim that it will give the much-needed boost to the Indian
insurance industry. Perhaps it is pertinent to ask here how the Indian insurance industry has fared in the
past few years through adverse economic conditions.
The insurance industry in India has done well even in times of adverse economic conditions, like
in the past few years when financial savings and domestic savings have dipped. Life insurance
penetration is 4.4 per cent in India according to 2010 data from the PFRDA. This is much better
than the levels obtaining in the U.S., Canada and Germany. This is also remarkable considering
the low income levels in India.
Today India ranks eighth globally in the volume of life insurance premium earned. The general
insurance industry is also doing well and is making steady improvement in penetration levels.
The insurance industry in India was opened up for private participation in 1999 when domestic players
were permitted to enter the sector in partnership with foreign insurance companies. Since then, a
number of major business houses in India have entered the insurance business. Have public sector
insurance companies such as the LIC managed to retain their market leadership through the past
decade when they competed with private insurance companies?
Well, you will find it interesting that the growth of the life insurance industry is driven by the state-owned
LIC. Even after 10 years of competition, it holds a market share of 76 per cent in premium income and
81 per cent in the number of policies, according to figures available at the end of August 2012.
Efforts to weaken the LIC have been thwarted as it enjoys total confidence of the insuring public. It
services over 30 crore individual policy holders and another 10 crore group policy holders. The LIC is
the biggest life insurer in the world in terms of the number of policies serviced and claims settled. The
hike in FDI is another attempt to weaken the LIC and the public sector general insurance companies.
What about the argument made by supporters of the Bill that the FDI hike will benefit
policyholders? Will it bring in advanced technology?
It is a myth that an FDI hike will benefit policy holders. What is the record of the private companies as
documented by the Insurance Regulatory and Development Authority [IRDA]? The average claim
settlement by the private companies is around 80 per cent as against 99.86 per cent by the LIC. The
private companies have repudiated [dishonoured a claim] 10 per cent of the death claims as against
less than 1 per cent by the LIC.
Secondly, the lapsation ratio [the ratio of the number of policies that lapse during a period to the total
number of policies written at the beginning of that period] of policies in the private companies is
alarmingly high. There are companies where the lapsation ratio is as high as over 50 per cent. The
lapsation ratio of the LIC is just around 5 per cent. There is consensus that the private companies are
making profits because of such high lapsation of policies. Therefore, to say that privatisation or FDI hike
will benefit policy holders is totally untrue.
Also, private insurance companies in India have been concentrating on the rich and the super-rich. This
is evident when you compare the ticket size [size of an insurance policy] and the premium between
private and public sector companies.
And this talk of advanced technology is also not valid. Nobody can argue against the fact that the LIC
has the highest levels of technology in the country. A product-utilising technology has to be developed
locally, based on the needs of the people. So it is wrong to think that foreign companies can develop
products for India.
Along with the hike in FDI in the insurance sector, the Union government also intends to
increase FDI in pension funds to 49 per cent. What is the AIIEA’s stand on this?
The AIIEA is opposed to the PFRDA Bill. The government wants to privatise pension funds. In a country
that has no social security for the vast majority, it should be the responsibility of the state to run a social
security scheme. Foreign participation in pension funds is dangerous. What happened in the U.S. and
other Western countries cannot be ignored. The speculative games that insurance companies and
pension providers played in those countries caused havoc on the savings of pensioners. India cannot
afford to hand over the social security savings of its people to the same speculative forces.
There is also a proposal to permit public sector general insurance companies to tap capital
markets for capital requirement. What does the AIIEA think of this?
The proposal to permit public sector general insurance companies to tap the capital markets for capital
requirement is not acceptable to the AIIEA. This simply means privatisation of the best and profitable
public sector units. The GIC and the four public sector general insurance companies have more than
Rs.100,000 crore in investments and nearly Rs. 30,000 crore in reserves. They are adequately
capitalised and do not need any additional infusion of capital in the foreseeable future. In case of need,
they can generate capital through internal resources. There is absolutely no need to privatise these
companies.
All these proposals are slated to come up for discussion in Parliament’s winter session. What is
the AIIEA doing to mobilise support to its fight against the proposals?
It is because of the efforts of the AIIEA that the foreign equity limit was restricted to 26 per cent in 1999.
Even this time, the AIIEA is determined to oppose the government decision. We are going to intensify
our campaign.
The AIIEA has decided to mobilise public and political opinion against these policies. It has also decided
to observe a nationwide strike if the government brings the Insurance Laws Amendment Bill, 2008, in
Parliament for approval.
The AIIEA appeals to the political parties and progressive sections of the people to support its struggle.
It is clear that the Union government is not going to have it easy in Parliament.
Volume 29 – Issue 21 :: Oct 20 – Nov 02, 2012
INDIA’S NATIONAL MAGAZINE
From the publishers of THE HINDU
COVER STORY
United in opposition
VIKHAR AHMED SAYEED
It is imprudent to allow foreign capital greater access to and control over domestic
savings, says Amanullah Khan, president, All India Insurance Employees’ Association.
G.P. SAMPATH KUMAR
Amanullah Khan: “It is a myth that an FDI hike will benefit policy holders.”
AMANULLAH KHAN is the president of the All India Insurance Employees’ Association (AIIEA), a trade
union with 1.5 lakh members drawn from employees of public sector insurance companies. These
companies include the Life Insurance Corporation of India, National Insurance Company Limited, The
New India Assurance Company Limited, The Oriental Insurance Company Limited, United India
Insurance Company Limited and the General Insurance Corporation of India. The GIC is the sole
reinsurance company in the Indian insurance market.
In an interview given to Frontline in Bangalore, Amanullah Khan discussed the implications of the
proposed move to raise the foreign direct investment (FDI) limit in the Indian insurance sector to 49 per
cent from the current 26 per cent. Excerpts:
You have made it clear that the AIIEA is opposed to any move to increase the FDI limit in the
Indian insurance sector through the passage of the Insurance Laws Amendment Bill, 2008. Can
you explain why such a stand has been taken?
The AIIEA strongly opposes the FDI hike because the decision to increase the foreign equity limit has
been taken to placate and win the confidence of international finance capital. It will neither benefit the
Indian economy nor bring any benefit to the insuring public. Insurance, especially life insurance,
mobilises small savings of the people for long-term investments. It is therefore imprudent to allow
foreign capital greater access to and control over domestic savings.
The UPA [United Progressive Alliance] government is making all efforts to liberalise the financial sector
and place it in the architecture of global finance capital because of pressure from governments of the
Western world such as the United States, France, Germany and the United Kingdom. The financial
sector plays a very important role in the national economy. The AIIEA strongly believes that the socalled
insurance reforms, the Pension Fund Regulatory and Development Authority (PFRDA) Bill and
the Banking Laws Amendment Bill will harm the national economy. India weathered the 2008 global
recession because the regulations here did not allow it to deal with derivatives. But if it fully integrated
with international capital, it will not be insulated.
Finance Minister P. Chidambaram has stated that it is necessary to increase FDI in the insurance
sector as the benefits will go to the private sector insurance companies, which require huge
amounts of capital infusion. Do you agree with this statement?
No, I do not agree with his statement at all. It is not true that private companies are starved of capital for
their expansion. The 23 private companies in the life insurance sector and the 18 companies in the
general insurance sector have been operating across the country for the past 10 years. Together, they
have more offices than the public sector units. These companies have been promoted by big industrial
and financial houses that have abundant resources at their command. They also have the option of
raising capital through initial public offers (IPO).
The Parliamentary Standing Committee on Finance, headed by former Finance Minister Yashwant
Sinha, has also held that there is no case for increasing the FDI limit and that the insurers can look to
the domestic market if they need additional capital. Unfortunately, the unanimous recommendation of
the committee has not been accepted by the government.
What about the argument that the opening up of the insurance sector will enable the flow of
high-premium income into India?
The argument that the opening up of the insurance sector to foreign capital will enable the flow of a
significant portion of global premium income earned by the foreign partners of private companies into
Indian infrastructure has not been proved right. There has been no evidence in the last decade to
suggest that the foreign partners brought any global premium earned by them to India. To say that they
are suddenly going to bring in capital now is an absolutely hollow claim. The total capital employed by
foreign partners as at the end of March 2011 in the insurance sector was just Rs.6,650 crore. There is
no justification to allow greater access to foreign capital on the premise that large FDI flows will take
place. You cannot make development hostage to foreign capital when there are local resources.
Foreign companies will bring in some capital, but only to mobilise domestic savings.
The government itself has expressed concern that the private companies have not made any significant
investments in infrastructure as the share of the LIC alone in the total infrastructure investments made
by insurance companies is nearly 90 per cent. You must remember that no foreign company is going to
invest in India out of a sense of altruism. They are all out to invest for profit, and to expect that foreign
capital inflow will develop the Indian insurance sector and economy is unwise. FDI is a very poor
substitute for domestic savings.
Arguments in favour of a hike in FDI claim that it will give the much-needed boost to the Indian
insurance industry. Perhaps it is pertinent to ask here how the Indian insurance industry has fared in the
past few years through adverse economic conditions.
The insurance industry in India has done well even in times of adverse economic conditions, like
in the past few years when financial savings and domestic savings have dipped. Life insurance
penetration is 4.4 per cent in India according to 2010 data from the PFRDA. This is much better
than the levels obtaining in the U.S., Canada and Germany. This is also remarkable considering
the low income levels in India.
Today India ranks eighth globally in the volume of life insurance premium earned. The general
insurance industry is also doing well and is making steady improvement in penetration levels.
The insurance industry in India was opened up for private participation in 1999 when domestic players
were permitted to enter the sector in partnership with foreign insurance companies. Since then, a
number of major business houses in India have entered the insurance business. Have public sector
insurance companies such as the LIC managed to retain their market leadership through the past
decade when they competed with private insurance companies?
Well, you will find it interesting that the growth of the life insurance industry is driven by the state-owned
LIC. Even after 10 years of competition, it holds a market share of 76 per cent in premium income and
81 per cent in the number of policies, according to figures available at the end of August 2012.
Efforts to weaken the LIC have been thwarted as it enjoys total confidence of the insuring public. It
services over 30 crore individual policy holders and another 10 crore group policy holders. The LIC is
the biggest life insurer in the world in terms of the number of policies serviced and claims settled. The
hike in FDI is another attempt to weaken the LIC and the public sector general insurance companies.
What about the argument made by supporters of the Bill that the FDI hike will benefit
policyholders? Will it bring in advanced technology?
It is a myth that an FDI hike will benefit policy holders. What is the record of the private companies as
documented by the Insurance Regulatory and Development Authority [IRDA]? The average claim
settlement by the private companies is around 80 per cent as against 99.86 per cent by the LIC. The
private companies have repudiated [dishonoured a claim] 10 per cent of the death claims as against
less than 1 per cent by the LIC.
Secondly, the lapsation ratio [the ratio of the number of policies that lapse during a period to the total
number of policies written at the beginning of that period] of policies in the private companies is
alarmingly high. There are companies where the lapsation ratio is as high as over 50 per cent. The
lapsation ratio of the LIC is just around 5 per cent. There is consensus that the private companies are
making profits because of such high lapsation of policies. Therefore, to say that privatisation or FDI hike
will benefit policy holders is totally untrue.
Also, private insurance companies in India have been concentrating on the rich and the super-rich. This
is evident when you compare the ticket size [size of an insurance policy] and the premium between
private and public sector companies.
And this talk of advanced technology is also not valid. Nobody can argue against the fact that the LIC
has the highest levels of technology in the country. A product-utilising technology has to be developed
locally, based on the needs of the people. So it is wrong to think that foreign companies can develop
products for India.
Along with the hike in FDI in the insurance sector, the Union government also intends to
increase FDI in pension funds to 49 per cent. What is the AIIEA’s stand on this?
The AIIEA is opposed to the PFRDA Bill. The government wants to privatise pension funds. In a country
that has no social security for the vast majority, it should be the responsibility of the state to run a social
security scheme. Foreign participation in pension funds is dangerous. What happened in the U.S. and
other Western countries cannot be ignored. The speculative games that insurance companies and
pension providers played in those countries caused havoc on the savings of pensioners. India cannot
afford to hand over the social security savings of its people to the same speculative forces.
There is also a proposal to permit public sector general insurance companies to tap capital
markets for capital requirement. What does the AIIEA think of this?
The proposal to permit public sector general insurance companies to tap the capital markets for capital
requirement is not acceptable to the AIIEA. This simply means privatisation of the best and profitable
public sector units. The GIC and the four public sector general insurance companies have more than
Rs.100,000 crore in investments and nearly Rs. 30,000 crore in reserves. They are adequately
capitalised and do not need any additional infusion of capital in the foreseeable future. In case of need,
they can generate capital through internal resources. There is absolutely no need to privatise these
companies.
All these proposals are slated to come up for discussion in Parliament’s winter session. What is
the AIIEA doing to mobilise support to its fight against the proposals?
It is because of the efforts of the AIIEA that the foreign equity limit was restricted to 26 per cent in 1999.
Even this time, the AIIEA is determined to oppose the government decision. We are going to intensify
our campaign.
The AIIEA has decided to mobilise public and political opinion against these policies. It has also decided
to observe a nationwide strike if the government brings the Insurance Laws Amendment Bill, 2008, in
Parliament for approval.
The AIIEA appeals to the political parties and progressive sections of the people to support its struggle.
It is clear that the Union government is not going to have it easy in Parliament.
Wednesday, May 9, 2012
Public Sector General Insurance Companies register 21.39% growth
The four PS Cos together collected a premium of Rs.30,531.61 cr in the financial year 2011-12, an increase of Rs.5,379.68 cr over the previous year, registering a combined growth of 21.39%.
Flash figures (provisional) – Rs in crores
Flash figures 2011-12
National 7784.91 (2011-12 GDPI) 6220.70(2010-11 GDPI) 1564.21(Accretion) 25.15(Growth%)
New India 8535.68 (2011-12 GDPI) 7097.14(2010-11 GDPI) 1438.54(Accretion) 20.27(Growth%)
Oriental 6043.97 (2011-12 GDPI) 5457.43(2010-11 GDPI) 586.54(Accretion) 10.75(Growth%)
United India 8167.05 (2011-12 GDPI) 6376.66(2010-11 GDPI) 1790.39(Accretion) 28.08(Growth%)
Total 30531.61 (2011-12 GDPI) 25151.93(2010-11 GDPI)5379.68(Accretion) 21.39(Growth%)
AIIEA congratulates all sections of employees for their excellent contribution to this success of Public Sector General Insurance Companies.
United India scores big -- Profit soars to Rs.469 cr. UIIC Board which met at Mumbai on Apr 28, 2012 has declared a profit of Rs.469 cr (PBT) for the year 2011-12. Profit After Tax (PAT) is Rs.386 cr. A dividend of Rs.78 cr is declared constituting 52% of the authorized share capital of Rs.150 cr. The company is celebrating its platinum jubilee this year. It has earned the distinction of being the first PSGI company to adopt the accounts for 2011-12 and to post the highest growth rate in premium. The company received three awards this year from Bloomberg-UTV and India Insurance Review. AIIEA sends its congratulations to all the employees on this success. ... Sd/- J. Gurumurthy, Secretary.
The four PS Cos together collected a premium of Rs.30,531.61 cr in the financial year 2011-12, an increase of Rs.5,379.68 cr over the previous year, registering a combined growth of 21.39%.
Flash figures (provisional) – Rs in crores
Flash figures 2011-12
National 7784.91 (2011-12 GDPI) 6220.70(2010-11 GDPI) 1564.21(Accretion) 25.15(Growth%)
New India 8535.68 (2011-12 GDPI) 7097.14(2010-11 GDPI) 1438.54(Accretion) 20.27(Growth%)
Oriental 6043.97 (2011-12 GDPI) 5457.43(2010-11 GDPI) 586.54(Accretion) 10.75(Growth%)
United India 8167.05 (2011-12 GDPI) 6376.66(2010-11 GDPI) 1790.39(Accretion) 28.08(Growth%)
Total 30531.61 (2011-12 GDPI) 25151.93(2010-11 GDPI)5379.68(Accretion) 21.39(Growth%)
AIIEA congratulates all sections of employees for their excellent contribution to this success of Public Sector General Insurance Companies.
United India scores big -- Profit soars to Rs.469 cr. UIIC Board which met at Mumbai on Apr 28, 2012 has declared a profit of Rs.469 cr (PBT) for the year 2011-12. Profit After Tax (PAT) is Rs.386 cr. A dividend of Rs.78 cr is declared constituting 52% of the authorized share capital of Rs.150 cr. The company is celebrating its platinum jubilee this year. It has earned the distinction of being the first PSGI company to adopt the accounts for 2011-12 and to post the highest growth rate in premium. The company received three awards this year from Bloomberg-UTV and India Insurance Review. AIIEA sends its congratulations to all the employees on this success. ... Sd/- J. Gurumurthy, Secretary.
Thursday, September 29, 2011
Thursday, November 4, 2010
ALL GLORY TO AIIEA
▪ WAGE ARREARS ON NOV.1 ▪ ALL GLORY TO AIIEA
By the time this communication is in your hands, the employees would have received the arrears of wages on November 01, 2010 with a great sense of jubilation for what we have struggled for over three years. A magnificent wage revision has been achieved. It is gratifying to note that employees and officers irrespective of cadre and union affiliations have offered to pay donation to AIIEA appreciating the stellar role played by AIIEA in getting this wage revision. This is the best ever wage revision secured by AIIEA, both in terms of quantum of arrears and in terms of percentage of increase.
▪ 4% LEVY CALL OF AIIEA
▪ RS.16.5 LACS ADVANCE LEVY PAID IN SOUTH ZONE & 92 NEW MEMBERS ENROLLED
Even before release of wage arrears by the management, it is heartening to note that the members of the AIIEA have already started paying their levy to their organization in many centres as per the call of AIIEA for payment of levy at the rate of 4% of their net arrears. In the 14th General Conference of GIEA, South Zone, being held at Davangere (Karnataka) from Oct 31 to Nov 02, it is reported that its eight Regional units in South have together received a levy payment of over Rs.16.5 lacs from the members in advance. The Conference also reports enrolment of 92 new members into AIIEA after conclusion of wage revision. Payment of advance levy of 4% to AIIEA by the members in West Bengal and Bihar-Jharkhand has also been reported. Our congratulations to all those comrades.
▪ FIGHT AGAINST PRIVATIZATION ▪ AIIEA’S MISSION CONTINUES
On the day the employees will receive their wage arrears on Nov. 01, AIIEA would be engaging in the continuing struggle against privatization of public sector general insurance companies. On the invitation of the Parliamentary Standing Committee (Finance), the President and General Secretary of AIIEA will be giving deposition before the Committee giving our considered views against the Insurance Laws (Amendment) Bill 2008. The Bill, inter-alia, provides for increase in FDI limit in Insurance from the present 26% to 49% and provides for disinvestment of public sector general insurance companies. We will have to mobilize support to fight against this Bill and against any attempt of Govt to dismember the PS insurance companies.
▪ FUTURE TASKS
The other tasks set by AIIEA include – (1) the demand for Merger of the four PS general insurance companies; (2) Recruitment (including upgradation of PTEs & restoration of compassionate appointments); (3) our opposition to the arbitrary imposition of the New Pension Scheme; (4) the demand for another option for pension under the existing GI Pension Scheme 1995. Already a one-hour protest walk-out strike against imposition of NPS was observed by AIIEA on 20.10.2010 with the slogan of protest NPS to protect new recruits, protest NPS to protect existing pension and protest NPS to strengthen demand for another option under the existing Pension Scheme. Further measures are being taken to fight the imposition of NPS.
▪ UNCLEARED ISSUES
There are still matters relating to wage revision which require further representations, viz, early clearance for extension of wage revision benefit to PTEs and care takers of guest houses, agreed improvements on LTS, Encashment of EL, Vehicle Advance, Housing Loan, Conveyance Allowance for PH, Running scale for Substaff, Driver and RCs, fitment on promotion, etc.
▪ CONFUSION GALORE
We are aware of the discrepancies and confusions in the implementation of wage revision and payment of arrears. More problems would be encountered when the arrears are paid to the employees on 01.11.2010, such as ad-hoc collection of IT (without giving 89(1) relief etc.), omission of certain allowances, wrong calculation, protection of HRA/CCA on TMP transfers, release of additional stagnation increments due on 01.11.2010, release of benefits to retired employees etc. These problems arise in spite of companies spending several hundred crores of rupees on Information Technology, BPR initiatives etc., since there has been no coordination between the author of wage revision (Personnel department) and IT department who have developed software. The management also did not choose to consult unions so that these difficulties could have been obviated. The problems would be taken up by AIIEA appropriately with the authorities.
▪ STRENGTHEN AIIEA FINANCIALLY & NUMERICALLY
AIIEA has delivered its promise of a unique wage revision and the present wage revision is unprecedented in all respects. Naturally, therefore, the employees have a great sense of appreciation to the organization which is reflected in the levy paid in advance by many employees in a number of centres. This is a clear acknowledgment of all classes of employees that it is only the AIIEA which has delivered on the question of wage revision and is only capable of meeting the future challenges. AIIEA feels that the employees would not only contribute 4% levy voluntarily but also help the organization in different centres to reach out to the other sections of the officers and employees so that the organization will have considerable financial consolidation. This is also the occasion for the units to bestir for organizational consolidation by enrolling more members.
With greetings,
Comradely Yours,
(J. Gurumurthy)
Secretary
Additional 36 slabs of DA from Nov 2010:
The employees and officers will receive an additional 5.40% of their revised basic pay as DA w.e.f. Nov 2010
36 slabs x 0.15% = 5.40%
By the time this communication is in your hands, the employees would have received the arrears of wages on November 01, 2010 with a great sense of jubilation for what we have struggled for over three years. A magnificent wage revision has been achieved. It is gratifying to note that employees and officers irrespective of cadre and union affiliations have offered to pay donation to AIIEA appreciating the stellar role played by AIIEA in getting this wage revision. This is the best ever wage revision secured by AIIEA, both in terms of quantum of arrears and in terms of percentage of increase.
▪ 4% LEVY CALL OF AIIEA
▪ RS.16.5 LACS ADVANCE LEVY PAID IN SOUTH ZONE & 92 NEW MEMBERS ENROLLED
Even before release of wage arrears by the management, it is heartening to note that the members of the AIIEA have already started paying their levy to their organization in many centres as per the call of AIIEA for payment of levy at the rate of 4% of their net arrears. In the 14th General Conference of GIEA, South Zone, being held at Davangere (Karnataka) from Oct 31 to Nov 02, it is reported that its eight Regional units in South have together received a levy payment of over Rs.16.5 lacs from the members in advance. The Conference also reports enrolment of 92 new members into AIIEA after conclusion of wage revision. Payment of advance levy of 4% to AIIEA by the members in West Bengal and Bihar-Jharkhand has also been reported. Our congratulations to all those comrades.
▪ FIGHT AGAINST PRIVATIZATION ▪ AIIEA’S MISSION CONTINUES
On the day the employees will receive their wage arrears on Nov. 01, AIIEA would be engaging in the continuing struggle against privatization of public sector general insurance companies. On the invitation of the Parliamentary Standing Committee (Finance), the President and General Secretary of AIIEA will be giving deposition before the Committee giving our considered views against the Insurance Laws (Amendment) Bill 2008. The Bill, inter-alia, provides for increase in FDI limit in Insurance from the present 26% to 49% and provides for disinvestment of public sector general insurance companies. We will have to mobilize support to fight against this Bill and against any attempt of Govt to dismember the PS insurance companies.
▪ FUTURE TASKS
The other tasks set by AIIEA include – (1) the demand for Merger of the four PS general insurance companies; (2) Recruitment (including upgradation of PTEs & restoration of compassionate appointments); (3) our opposition to the arbitrary imposition of the New Pension Scheme; (4) the demand for another option for pension under the existing GI Pension Scheme 1995. Already a one-hour protest walk-out strike against imposition of NPS was observed by AIIEA on 20.10.2010 with the slogan of protest NPS to protect new recruits, protest NPS to protect existing pension and protest NPS to strengthen demand for another option under the existing Pension Scheme. Further measures are being taken to fight the imposition of NPS.
▪ UNCLEARED ISSUES
There are still matters relating to wage revision which require further representations, viz, early clearance for extension of wage revision benefit to PTEs and care takers of guest houses, agreed improvements on LTS, Encashment of EL, Vehicle Advance, Housing Loan, Conveyance Allowance for PH, Running scale for Substaff, Driver and RCs, fitment on promotion, etc.
▪ CONFUSION GALORE
We are aware of the discrepancies and confusions in the implementation of wage revision and payment of arrears. More problems would be encountered when the arrears are paid to the employees on 01.11.2010, such as ad-hoc collection of IT (without giving 89(1) relief etc.), omission of certain allowances, wrong calculation, protection of HRA/CCA on TMP transfers, release of additional stagnation increments due on 01.11.2010, release of benefits to retired employees etc. These problems arise in spite of companies spending several hundred crores of rupees on Information Technology, BPR initiatives etc., since there has been no coordination between the author of wage revision (Personnel department) and IT department who have developed software. The management also did not choose to consult unions so that these difficulties could have been obviated. The problems would be taken up by AIIEA appropriately with the authorities.
▪ STRENGTHEN AIIEA FINANCIALLY & NUMERICALLY
AIIEA has delivered its promise of a unique wage revision and the present wage revision is unprecedented in all respects. Naturally, therefore, the employees have a great sense of appreciation to the organization which is reflected in the levy paid in advance by many employees in a number of centres. This is a clear acknowledgment of all classes of employees that it is only the AIIEA which has delivered on the question of wage revision and is only capable of meeting the future challenges. AIIEA feels that the employees would not only contribute 4% levy voluntarily but also help the organization in different centres to reach out to the other sections of the officers and employees so that the organization will have considerable financial consolidation. This is also the occasion for the units to bestir for organizational consolidation by enrolling more members.
With greetings,
Comradely Yours,
(J. Gurumurthy)
Secretary
Additional 36 slabs of DA from Nov 2010:
The employees and officers will receive an additional 5.40% of their revised basic pay as DA w.e.f. Nov 2010
36 slabs x 0.15% = 5.40%
Wednesday, August 4, 2010
WAGE REVISION TALKS ON 02.08.10 & DEVELOPMENTS
Final round of WAGE talks at Hyderabad:
Time: 10 to 11.30 am, August 2, 2010
Present:
Mgt. CE of GIPSA & GMs (P), DGMs & other officials from 4 Cos. & GIC.
AIIEA: Full negotiating committee led by Com. K. Venu Gopal.
We conveyed that the wage proposals given on July 26 are satisfactory to a great extent. We wanted the mgt. to consider our representation for improvements (Details given in our earlier cir.no.SC/07/2010 dt. 27.7.2010.
Message No.2
Wage talks in General Insurance concluded:
In the full committee talks in the forenoon of August 02, AIIEA made detailed submissions for improvements on issues highlighted in our earlier circular. In the joint session at 4.00 P.M., the management assured to consider maximum number of issues as would be feasible within financials & expedite their recommendations to Govt. for early notification.Message No.3
Ø AIIEA Does it Again
Ø Towards a WHOLESOME, HANDSOME & OUTSTANDING Wage deal
Ø Management Agenda kept off
Ø Pension issue kept open
Ø All kudos to AIIEA
Hold Victory Rallies in all centres on Wednesday, August 04.
Message No.4
AIIEA ‘s role on Wage Revision appreciated – 18 new members enrolled:
Coimbatore Region 8 – New India 6, Oriental 2 (Salem)
Kerala 3 – Oriental – Kollam 1 & Trichur 2
Hyderabad 7 – National 4, Oriental 2 & United India 1
CONGRATS !
WAGE REVISION TALKS AIIEA ROLE
- Wage Revision in General Insurance heading towards finality
- GIPSA offers satisfactory proposals
- Final round of talks with AIIEA at
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
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
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.
Secretariat
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.
Friday, June 25, 2010
60 glorious Years of AIIEA & GIC Wage Revision and Promotion Policy Developments
1
------------------------------------- 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.
3
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.
4
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
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.
3
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.
4
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
Thursday, April 8, 2010
GIPSA INVITED FOR TALKS ON 08.05.2010.
This has reference to the SMS sent on 07.04.2010 reg Wage talks on 07.04.2010 and find the letter from GIPSA inviting for talks on 08.05.2010.
Sub: Wage Revision -- GIPSA invites Unions for talks at Mumbai on 8th May 2010
J Gurumurthy
Secretary. AIIEA, Chennai
April 07, 2010
------------------------------------------------------------------------
Copy of letter dated 07-04-2010 from GIPSA
To
The Principal Office Bearers of All Check Off Qualified Unions / Associations of Member Companies,
Dear Sir,
Very Truly Yours,
A K SINGHAL
CHIEF EXECUTIVE
GIPSA
Sub: Wage Revision -- GIPSA invites Unions for talks at Mumbai on 8th May 2010
GIPSA has invited the check-off qualified Unions/Associations for discussions on Wage Revision. It will be a joint meeting with the Unions at the level of CMDs of all the member-cos at Mumbai on May 8, 2010. The Unions have been asked to nominate two central leaders to represent in the meeting; we have demanded that discussions should be held with full negotiating team of unions and on a continuing basis. Further developments will be communicated. (copy of GIPSA's invite dt.7.4.2010 is appended below).
Secretary. AIIEA, Chennai
April 07, 2010
------------------------------------------------------------------------
Copy of letter dated 07-04-2010 from GIPSA
To
The Principal Office Bearers of All Check Off Qualified Unions / Associations of Member Companies,
Dear Sir,
This is further to our mail of 30th March, 2010 enclosing therewith a pdf copy of our Chairman's letter of the same date addressed to you.
We hasten to inform you that the issue of Wage Revision for employees of our Member Companies came up for discussion in the meeting of the Governing Board of GIPSA held today and the Board has desired the CMDs of the Member Companies to meet the check off qualified Unions/Associations for further discussing and resolving the issue.
Accordingly, a joint meeting of all the check off qualified Unions/Associations is scheduled to be held at Mumbai on Saturday, the 8th May, 2010 at which the CMDs of all our Member Companies shall be interacting with all of you with a view to resolve the issue. Each Union/Association may be represented by two central office bearers in the said meeting. The exact venue of the meeting is being finalized and shall be communicated to you in due course.
In the meanwhile, we would request you to kindly let us have confirmation of your participating in the said meeting and the names of the office bearers nominated to represent your Union/Association.
Thanking you and looking forward to a fruitful interaction,
Very Truly Yours,
A K SINGHAL
CHIEF EXECUTIVE
GIPSA
Wednesday, March 31, 2010
2 Hours Walk-out Strike on 31.03.2010 in GI PS Companies deferred.
Please note that to-day strike deffered in the context of thecall for 2Hour walkout on 31.03.2010 and the serious preparations therefor, the GIPSA has send a letter under the signature of Chairman on 30.03.2010. He has appealed to the unions to withdraw the STrike and assured to deliberate the matter in their Governing Board on 7.04.2010 for further dialogue and progress. It is a climb down from their earlier stand of " thus far no further ". Talking into account the conciliatory approach of Management, it hasbeen decided to defer the 2Hour strike till further review after 7th April, 2010. Because of the Strike action programme, GIPSA management came down with positive approach. Quodos to all associations who joined in the Joint Action Programme
Rama Sarma SVS, General Secretary, VRGIEA
Rama Sarma SVS, General Secretary, VRGIEA
Wednesday, March 24, 2010
2 HOURS PRE LUNCH WALK-OUT STRIKE ON 31.12.2010 IN PS GI COMPANIES
Dear Comrades,
Best Performance by Public Sector General Insurance Cos. – CONGRATS!
Growth over the corresponding period of previous year (%)
GIPSA / Mgt. Still Indifferent – Refuses to Talk to the Unions
Break the silence – Unions call for Walkout Strike on 31.03.2010
LIC Chairman assures to work for Satisfactory Wage Revision for LIC Employees/Officers
New Team for CITU
Best Performance by Public Sector General Insurance Cos. – CONGRATS!
The four PS General Insurance Cos. have procured a gross premium of Rs.18,222.44 Cr. in the 11-month period of the current fiscal upto February 2010 recording an average growth of 12.21% over the corresponding period of the previous year. The two top private insurance companies posted a negative growth during this period.
Growth over the corresponding period of previous year (%)
New India 8.85%, United India 19.45%, Oriental 15.76%, National 6.11%, Total Public Sector 12.21%
ICICI (-) 7.77%, Bajaj Allianz (-) 6.73%, Tata AIG 0.07%
GIPSA / Mgt. Still Indifferent – Refuses to Talk to the Unions
In Public Sector General Insurance, the wage talks are still at the level of GMs(P) of the Cos. with their insistence on 17.5% (with mgt. Agenda). It seems that any amount of persuasion, logic and justification for a better wage deal would not work when the mgt. decides to remain indifferent. The CMDs of Cos. 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. The mechanism of GIPSA is allowed to bully the employees; the CE sent a letter to the Trade Unions dated 05.02.2010 asking the consent of the Unions to the retrograde offer of mgt; a sort of message is sent out to the Unions that the mgt. would proceed unilaterally. The Unions’ protests notwithstanding, the mgt. remains adamant and indulges in act of dividing the employees stating that some of the Unions have consented and appreciated their offer of 17.5%.
To break the silence of the management, to press for early resumption of talks with a better offer sans conditions and to secure a respectable wage package and pension option, the Unions and Associations of employees and officers have called upon the employees and officers to observe two-hour walkout strike preceding lunch recess on March 31. 2010. The joint strike notice has been issued by the unions and SC/ST Welfare Associations besides issuance of individual union-wise notices.
The four Unions of Confed (NICOA, NIAOA, OICOA & UIIOA), AIIEA, AIGIFWA and the three SC/ST Welfare Organisations (AIGISC/STWA, AIGISC/ST Parishad and AISC/STGIWA) have already issued a joint call. Appeal is made to the other organisations to join the movement in the larger interest of employees and officers.
The Joint Communique dt. 22.03.2010 is sent herein. All our units are advised to coordinate with the unions and Welfare organisations to chalk out appropriate local programmes for the successful observance of the call. The programme includes lunch hour demos on March 30, April 5 and 12 subject to local convenience. The Unions/Associations have decided to intensify the agitation if the mgt. allows the stalemate to continue.
After rejecting the offer of 17.5%, AIIEA and other Unions in LIC launched series of programmes of agitation, which included walkout strike and one day strike to press for a better deal. In the background of further call of the unions in LIC for withdrawal of extra cooperation and one day strike on March 31, 2010, LIC mgt. invited the Unions for discussion on March 19 & 20, 2010. The Chairman and MD assured the unions of their serious efforts for a satisfactory solution to the wage demand. Following the commitment of the mgt. to workout a satisfactory wage settlement and the appeal made by the Chairman, the Unions in LIC have agreed to suspend their agitation.
New Team for CITU
Com. A.K. Padmanabhan has been elected as President and Com. Tapan Sen as General Secretary of the CITU in the national conference held at Chandigarh during March 16-20, 2010. AIIEA has sent its greetings to the new team of CITU.
ALL THE EMPLOYEES OF PUBLIC SECTOR GENERAL INSURANCE COMPANIES OF INDIA ARE REQUESTED TO PARTICIPATE IN THE
2 HOURS PRE-LUNCH
WALK-OUT STRIKE
ON
31.03.2010
TO ACHIEVE THE FAIR WAGE REVISION WITHOUT ANY CONDITIONALITIES .
Friday, March 19, 2010
JAC STRIKE PROGRAMME ON 31.03.2010(2 HOURS WALKOUT AND 13.04.2010 ONEDAY STRIKE
Dear all,
Sub: Joint Movement on Wage Demands
This refers to the mail of Com S. Vasudevan, Secretary General of AIGIFWA dt 16.3.2010. I fully agree with his perception.
The Chennai JAC meeting on 12.3.2010 was attended by all-India leaders of Unions/Assns as mentioned by Com Vasudevan. Com.B.Shanmugham & Com.Kesavan (NIAOA - Confed), Com Ramadoss & Naganathan (GIOAIA - INTUC), Com.Sathyanarayana (Secretary GIEAIA), Com KA Alexander, Com. Umapathy & Com Asokan (SC/ST Welfare Assn) represented their organisations in the meeting, besides J Gurumurthy & PV Nandakumar (AIIEA), G Jayamurthy(Parishad), S.Vasudevan (AIGIFWA), Vasudevan Iyengar, Jose & CA Baskaran (CONFED & UIIOA).
The meeting was held as a continuing process of building up joint movement to break the stalemate in the negotiations and to arrest the intended move of mgt to go ahead with unilateral actions. The success of earlier programmes chalked out in joint meetings at Chennai was noted. Except in General Insurance, in all the public sector institutions, strike actions have taken place on wage question and good settlements have been made possible. It is nearing three months now since the last round of talks was held in General Insaurance on Dec 22. The mgt has been indulging in devious acts to keep some unions out of any joint movement and propogating that one union has given its consent for 17.5%. This has been repudiated by the unions and it is felt that such falsehood of the mgt should be responded by concrete actions by all the unions.
With due consultations, Com.CA Bhaskaran, Secretary General of Confed has since advised their constituent units to issue strike notice on the mgt for the strike actions as discussed and as per consensus arrived at in the JAC meeting held on 12th March.
- The joint programmes as decided include
Two-hour walk-out strike preceding lunch interval on March 31 &
One day strike on April 13, 2010 with weekly demonstrations -
* To break the silence of mgt;
* To press for early resumption of talks with better offers sans conditionalities; &
* To secure a respectable wage package & another Pension option.
AIIEA is endorsing the call and will be issuing Strike notice on the mgt. A joint Notice to mgt is also proposed.
AIIEA has advised its units to organise/join/participate in local meetings of unions/associations with the sole view of taking the movement forward to secure a respectable wage settlement. Hope that should be the spirit of all.
J Gurumurthy
Secretary, AIIEA
March 16, 2010
All the employees of PS GIC companies are requested to mobilise the employees towards strike programmes to reach our voice with echo to higher authorities to resolve the long pending wage revivision without any conditionalities.
Rama Sarma SVS, General Secretary, VRGIEA
Rama Sarma SVS, General Secretary, VRGIEA
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