New Delhi, December 9
Although Prime Minister Manmohan Singh today did not announce the hike in EPF interest rate from 8.5 per cent, he kept the hopes of four crore subscribers alive by promising to discuss the issue with the Labour Minister and officials concerned to consider the demand.
He called for “less rigid” labour laws and public policy, which allows firms to adjust or perish in the competitive environment.
Inaugurating the 40th Indian Labour Conference here, Mr Manmohan Singh said: “I will discuss the issue with the Labour Minister and officials to see what can be done about it within the existing resources of the Employees Provident Fund Organisation.”
Admitting that it was the only social security to workers in the organised sector, the Prime Minister said: “Falling interest rate can cause hardships to the people at the lower rung.”
The EPFO board had reduced the interest rate by a percentage point to 8.5 per cent evoking strong protests from trade unions across the board and workers around the country.
With the Prime Minister not giving any categorical assurance of hiking the interest rate to satisfy the trade unions, Left parties today warned the UPA coalition of an "imminent confrontation" over EPF issue.
"If the
government does not de-link the social security instruments from market principles, a battle, a confrontation is imminent," CPM leader Nilotpal Basu told reporters here.
Earlier addressing the Labour Conference, Prime Minister argued for changes in the labour laws for the country to be competitive in the global village and sustain a high GDP growth rate.
"We need new laws for new times," he said.
