Chennai, May 10 (Inditop.com) The much expected wage talks in the state-owned non-life insurance sector has ended in a stalemate.
The employees unions were upbeat about getting better offer from the General Insurers Public Sector Association (GIPSA) as the heads of National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company were present for the first time at the negotiations in Mumbai Saturday.
The unions were hoping for a good wage settlement in the wake of a 14 percent growth the insurers have logged in 2009-10.
“The managements seemed to have not received the mandate to improve their earlier offer of 17.5 percent. They wanted the unions to accept the same offer to enable them to work out scales and deliberate on the organisational agenda – transfers, outsourcing,” J. Gurumurthy, secretary of the All India Insurance Employees Association (AIIEA), told Inditop.
While the unions raised the issue of one more option for employees to join the pension scheme, the management resisted it, saying that the financial burden on the companies will be high.
According to GIPSA, the pension burden on New India alone will be around Rs.626 crore.
“We have urged the managements to keep the pension option open,” said Gurumurthy.
