EPFO meets tomorrow to discuss rate of interest

New Delhi, May 26 (UNI) The crucial meeting of the Central Board of Trustees of the Employees Provident Fund Organisation(EPFO) tomorrow, is likely to be a stormy affair with the government and trade unions discussing the interest rate on EPF for 2006-07.

While the government has proposed to pay 8 per cent for the year 2006-07 and 8.25 for 2007-08, the employees' bodies are demanding more.

The EPFO is yet to notify the rate of interest on the EPF for both the years.

The EPF, world's largest social security scheme, has over 42 million subscribers in the country. As many as 40 members are on the Board with 10 coming from the workers' side, the same number from the employers and 10 each from the state and central governments.

Throwing broad hint about the goverment's inability to pay the interest rate as demanded by the Trade Unions, Labour Minister Oscar Fernandes said told, only recently, a group of journalists here that ''what is available is divisible'', in an obvious reference to the declining trend started during the NDA regime.

Talking to UNI, top leaders of CITU, AITUC and BMS said it is unfortunate that the government in spite the assurances in the CMP is now abdicating its social responsibility towards the working classes.

''If the situation persists, we will have no choice but to unleash a unified action including a walkout from the meeting tomorrow,'' said Mr M K Pandhe of CITU, Mr D L Sachdev of AITUC and Mr Girish Avasthi of BMS.

INTUC Secretary Ashok Singh, endorsing their viewpoint said, ''We have to jointly discuss and finalise the action.'' The TUs reminded that EPFO Board Chairman, who is also the Labour minister Mr Oscar Fernandes put the same proposals in the previous three meetings, but assured them that he would talk to both the Finance Minister and the Prime Minister.

''But it is still unclear whether the Chairman has broahced the issue with them or not,'' Mr Pandhe and Mr Sachdev said.

They made a strong case for payment of 9.5 per cent for both the financial years on the plea that over 80 to 90 per cent of the Fund amount which is about one lakh crores is already with the government in the Special Deposit Scheme or in the government securities.

BMS leader Girish Avasthi asserted, ''We will definitely stage a walkout if the government remained adamant. When the whole interest regime had increased and that many banks are now paying 9.5 per cent rate of interst, then there is no justification to continue 8 per cent on the SDSs and less than 8 per cent on government securties.'' Mr Avasthi said the TUs will also launch a countrywide agitation on the workers' issues.

''The government is duty bound to protect the world's largest social security scheme,'' HMS leader R A Mittal added.

UNI