Open confrontation with UPA imminent: Left

New Delhi, Jan 23 (UNI) The Left parties appear to be on a war-path with the UPA government over Prime Minister Manmohan Singh's announcement regarding the new Pension Fund policy at the Chief Ministers' conference yesterday.

They were also unhappy over the reduction in interest rate on EPF to 8 per cent and amendments to the Contract Labour Act.

Top leaders of the CPI and the CPI(M) told UNI today that these steps strengthened their apprehension that non-Left parties were out to carry forward the dictates of the international finance institutions.

They apprehended that this ''new collaboration'' of the Congress and the BJP Chief Ministers might embolden the Manmohan Singh government to further take ''anti-workers and anti-employees'' decisions.

Earlier at the UPA-Left Meet in November, CPI General Secretary A B Bardhan said the Congress government had indicated that it would go ahead with the Legislative measures for reforms in the financial sector, particularly in the banking sector and in the Labour Contract Act.

''The Left parties had unanimously opposed both the suggestions and told the UPA leadership this could lead to an open confrontation between the government and the Left,'' Mr Bardhan said.

On BJP-ruled states asking for expediting the reforms in the Pension Funds, CPI National Secretary Shamim Faizi said it simply showed ''class affinity'' between the two major political parties of the country.

''One should recall that during the NDA regime, a similiar situation had arisen when the Insurance Regulatory and Development Authority Bill (IRDA) was pending before Parliament. At that time, the Left parties were firm in their struggle against the same,'' he said.

It was the Congress that bailed out the NDA by extending support to the IRDA, Mr Faizi added.

On the new Pension Fund Policy, the CPI leaders said the argument that the state governments would become bankrupt without allowing investments from the Provident Fund in the Stock Exchange ''is nothing but a blatant attempt to hoodwink the people''.

Mr Faizi contended the basic question was that the social security of the employees, contributed to the PF, would get eroded by handing over even 5 per cent of their funds to ''private manipulators''.

CPI(M) senior leader and Deputy Floor leader in the Lok Sabha Salim Mohammad observed that as far as economic issues were concerned, there were no differences between the Congress and the BJP.

''This has been proved time and again. During the Narasimha Rao regime, the BJP was supporting all anti-people economic policies and during the NDA rule, the Congress fought on economic issues,'' Mr Mohammad said.

Forward Bloc National Secretary G Devrajan said, ''The government was running away from its social responsibility towards the old and the retired employees.'' On the government's move to amend the Labour Contract Act, CPI(M) senior leader Nilotpal Basu said they would oppose any such move that curtailed the workers' rights and did not ensure safe working conditions and other routine benefits for them.

On reduction in the EPF interest rate to 8 per cent from the present 8.5 per cent, he said it was not acceptable to the Central Trade Unions (TUs) and that they would fight it tooth and nail to protect the workers.

UNI