Unions seek full EY report for discussions on PSU general insurers rejig

The Joint Forum of Trade Unions and Associations (JFTU) in 4 PSUs general insurers reiterated their demand for discussions on restructuring after full report is submitted by the consultancy firm EY

The Joint Forum of Trade Unions and Associations (JFTU) in the four public sector general insurance companies reiterated their demand for discussions on restructuring after the full report is submitted by the consultancy firm EY, said a senior official.

 

He also said the management has agreed to maintain the status quo.

"Our primary demand at the meeting with the GIPSA (General Insurers' (Public Sector) Association of India on Thursday was to have the full report of EY before any discussion on the restructuring of the four companies," said Trilok Singh, Convenor-North Zone, JFTU told IANS.

The four public sector government insurers -- The Oriental Insurance Company Limited, National Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited -- have hired consultancy firm EY to suggest rejig measures.

According to JFTU, EY has not given any report on the restructuring but only some power point (PPT) slides.

Based on the PPT slides, the companies are carrying out restructuring exercises like closure of offices, redeployment of staff and other aspects, Singh said.

"The same EY had earlier recommended the merger of the four companies into one, which the unions are also in favour of," Singh added.

The members of JFTU also opposed the forceful implementation of business development executive (BDE), business development manager (BDM) schemes and the irrational closure and merger of offices including the profitable ones, Singh said.

The management will come out with a revised BDE and BDM schemes with more benefits to motivate the staff to generate more business. The companies are also planning to appoint marketing staff on a fixed remuneration per month plus incentives on the business brought in.

The meeting on Thursday was held as per the understanding the management and the JFTU arrived at the conciliation meeting called by the Chief Labour Commissioner, Central earlier this month.

Last fiscal, the four insurers on the advice of Department of Financial Services/GIPSA had appointed EY to diagnose and identify the reasons attributed to the losses suffered by the companies and to design and implement the necessary changes to ensure profitability.

According to Singh, the management was initially reluctant to record the Thursday's discussions and exchange Minutes, but on insistence the former agreed.

(Venkatachari Jagannathan can be reached at v.jagannathan@ians.in)

--IANS

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