Wage talks between insurance staff, GIPSA remains inconclusive

The third round of ongoing wage negotiations held here between the employees' union leaders of state-owned non-life insurance companies and General Insurance Public Sector Association (GIPSA) remained inconclusive today.
GIPSA comprises chairmen of all the four state-owned general insurance companies in the country. It is currently headed by the New India Assurance Chairman and Managing Director G Srinivasan.
The employee union leaders, representing 65,000 employees working in the sector, are demanding 20 per cent in their wage hike, whereas the GIPSA was ready to offer them only 15 per cent rise, falling on the lines of the recently-concluded 10th bipartite talks held between the bank employee union leaders and Indian Banks' Association.

The general managers (personnel) of all the four state-owned non-life insurance companies in the country and GIC Re participated in today's deliberations. It was attended by the union leaders coming from 10 various employees' unions of the state-owned non-life insurance sector. GIPSA chief executive A K Singhal chaired today's meeting.
"We have rejected the offer of 15 per cent hike in our salary, which was given by the GIPSA during our third round of wage negotiation talks which remained inconclusive today as we have been demanding wage hike to the tune of 20 per cent," Bharatiya Veema Karmachari Sena President Sharad Jadhav told PTI.

In case the GIPSA offer of 15 per cent hike in wage is taken into account then it will put a burden of Rs 5,092 crore on the exchequer. However, in case of 20 per cent hike, it will further add Rs 700 crore to this burden.

Reasoning the demand of wage hike more than their counterparts working for state-owned banks, Jadhav said: "Unlike in the banking sector which has been suffering from piling up of NPAs, we have been giving dividend to the government.
"This year alone, we have handed over dividend of Rs 600 crore, including the New India Assurance's contribution of Rs 220 crore to the government and hence our case shouldn't be compared with that of bank employees."

New India Assurance General Manager (personnel) P Nayak said: "After discussing the highlights of today's meeting, GIPSA will take up the issue with the government before the next round of negotiations takes place.