Workers at public sector insurance companies have turned down the government's request for a 12% pay increase. Rather, they have called for a pay raise of at least 17%. The Department of Financial Services' (DFS) proposed 12% pay increase has been rejected by unions that represent 35,000 workers in the public sector general insurance business. Instead, the unions are calling for a 17% pay raise to match that of the employees of the Indian banking industry and the Life Insurance Corporation (LIC).
The Reserve Bank of India (RBI) recently raised employee salaries. In March of last year, Public Sector Banks signed the 12th BPS. The DFS has agreed in principle to update the employee family pension, raising it to 30%, which is a favorable step that the unions have endorsed. The unions applauded this action as a positive stepping stone.
Details of the Wage Revision Meeting
The wage revision discussions were held in New Delhi. The meeting was attended by representatives from the management of the General Insurance Public Sector Association (GIPSA), which represents the six public sector general insurance companies. Also, representatives from all the recognized unions of the industry, were present in the meeting.
The six state-owned general re/insurance companies included in this discussion are:
- New India Assurance
- Oriental Insurance Company
- United India Insurance
- National Insurance Company
- Agriculture Insurance Company
The Unions’ Stance on the Wage Proposal
Initially, the GIPSA management proposed a 10% increase on the basic pay and dearness allowance (DA). However, this proposal was immediately rejected by the unions. After this rejection, the management raised the offer to 12%. Despite this, the unions stood firm on their demand for a 17% wage hike to ensure parity with LIC employees and those in the Indian banking sector.
According to sources from the unions, they have been clear in their stance that the offer is still insufficient. The unions continue to push for a higher increase in salary.
Next Steps and Future Discussions
In response to the unions’ demand, the GIPSA management has assured that the matter will be revisited and taken up with the Joint Secretary of the DFS for further discussion and consideration.
The meeting was attended by the CMDs, executive directors, and general managers of the participating companies, along with the Joint Secretary and Under Secretary from the DFS. More details will be released soon.
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