The Hindu : National : PM to discuss EPF rate with Labour Minister

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Saturday, Dec 10, 2005

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PM to discuss EPF rate with Labour Minister

Special Correspondent

"I will see what can be done within the resources of EFP Organisation"

NEW DELHI: Prime Minister Manmohan Singh will discuss with Labour Minister K. Chandrasekhar Rao the issue of lowering of the interest on Employees Provident Fund deposits and see what can be done within the resources of the EPF Organisation.

He was responding to the demand for restoration of the rate to 9.5 per cent made by trade unions at the 40th session of the Indian Labour Conference (ILC) here on Friday.

Mr. Singh did recognise that the fall inthe rate reduced returns to the individuals and caused hardship, particularly to those on the lowest rung of society.

"All I can say is that I will discuss the matter with the Labour Minister and officers and see what can be done within the existing resources."

The Prime Minister overstayed for 40 minutes to hear trade union representatives, who unanimously demanded restoration of the EPF rate.

The most vocal among them, M.K. Pandhe of the Centre of Indian Trade Unions threatened that the unions would launch a countrywide protest.

"If that has to be avoided, the Prime Minister must announce restoration at the meeting today or in the immediate future," he said, adding Dr. Singh should realise that his was not a majority Government but was supported by 61 Left MPs. "Do not hastily change the law if the government has to survive for five years."

All-India Trade Union Congress general secretary Gurudas Dasguptasaid the decision to lower the interest rate deeply `hurt' the people. "If the government could reduce the turnover tax and bear a loss of Rs. 700 crores just because brokers made a noise, it can generate Rs. 700 crores for the welfare of the four crore EPF subscribers."

Suggesting a change in the pattern of investment of the subscriber's money, Ashok Singh of the Indian National Trade Union Congress said taking money from the reserve fund last year was wrong. That was also workers' money and meant for a specific purpose.

The Labour Minister said that last year, the EPF Organisation mobilised resources internally to meet the payment of 9.5 per cent.

Representatives of the Hind Mazdoor Sabha, the United Trade Union Congress, the UTUC (LS) and the National Federation of Trade Unions spoke.

The conference, being held after two years, will discuss the proposed amendments to labour laws, social security for the unorganised sector, the workers' right to strike, disinvestment in public sector companies and Foreign Direct Investment in the print and electronic media.

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