Unions oppose performance linked wages, demand merger of PSU general insurers

General Insurance Employees’ All India Association (GIEAIA) has expressed its reservation about linking pay to performance and demanded the merger of all 4 public sector general insurance firms.

Linking wage revision for the wages from 2022 with the performance of the person and the corporate is opposite to the observe in any PSU, central or state authorities, the GIEAIA stated in a press release.

This motion, if carried out, shall result in encourage privatization within the identify of key performance indicator (KPI), GIEAIA general secretary Trilok Singh stated.

The most unlucky half is that right this moment Department of Financial Services (DFS) officers aren’t addressing the true and critical subject to offer stage -playing discipline to the general public sector general insurance firms (PSGICs), he stated.

The DFS has failed to regulate the unethical practices of the non-public gamers within the insurance sector, he added.

The union needs the federal government to undertake a direct merger of all 4 PSGICs right into a single monolithic company consistent with LIC in one of the best curiosity of the policyholders, staff and the residents at giant.

The union was additionally not proud of the 12.05 per cent wage hike after 5 years wait.

Last week, the Finance Ministry notified a median 12 per cent wage hike for workers of 4 public sector general insurance firms efficient from August 2017.

It is a matter of critical concern that the general public sector general insurance firms who gave good-looking earnings and dividends for the years from 2012 to 2017 and efficiently carried out varied Government Social Security Schemes like Ayushman Bharat, Pradhan Mantri Fasal Bima Yojana, Corona Kawach coverage, aren’t given correct wage hike.

The PSGIs in the course of the interval of 2012 to 2017 contributed greater than Rs 10,000 crore as dividends to the federal government, it claimed.