Indecision on EPF interest rate angers TUs

New Delhi, May 28 (UNI) The repeated deferring of the decision on interest rate on the Employees Provident Fund(EPF) for 2006-07 and 2007-08 by the Board of Trustees has angered the Central Trade Unions, who today alleged that the government is "out to curtail the rate on this or that excuse." The top leaders of the AITUC, CITU and BMS told UNI that Union Labour Minister Oscar Fernandes' postponing the decision on interest rates at the special meeting of EPF Board of Trustees here yesterday, on the plea of the model code of conduct for the Goa assembly elections, was just an excuse.

This was the fifth meeting in a row of the CBT to decide the issue of interest rate to be credited to the occupants of over four crore subscribers of the EPFO for the previous financial year.

While AITUC National Secretary D L Sachdev said Mr Fernandes had not yet made it clear whether he had talked to Finance Minister P Chidambaram and Prime Minister Manmohan Singh on the issue, BMS Chief Girish Avasthi said the Trade Unions would not allow the rate to be lessened further.

Indeed, the government wants to further curtail the rate to eight per cent, Mr Avasthi said adding that all the major Trade Unions would soon launch a countrywide agitation on the issue. "The Labour Minister has been making assurances to the Trade Unions on talking to Finance Minister and the Prime Minister for long".

CITU President M K Pandhe said the decision could have been taken as the Goa Assembly polls was a matter related to the state while the EPF issue was related to the Centre.

Mr Sachdev, however, mentioned about "something positive" saying their demand for paying old rate of interest at the rate of 8.5 per cent to the workers, who are settling their accounts, had been accepted by the way of amending the 60th paragraph of the EPF Scheme.

The Ministry of Labour and Employment in a release here today said, "the most obvious effect of non-declaration of rate of interest will be felt in updation of annual accounts and furnishing of information of balances to members." While presiding over the EPFO meet, Mr Fernandes also remarked that the delay also led to accumulation of Interest Suspense Account which drew adverse attention. It would also have implications in further roll out of the Re-inventing EPF Indian Project in other offices, the release added.

UNI