M A I N   N E W S

EPF rate cut: Trade unions to launch
nationwide protests
Tribune News Service

New Delhi, January 11
The central trade unions today decided to jointly launch nationwide protests against the notification of 8.5 per cent EPF interest rate for 2005-06, and raising the issue with Finance Minister P. Chidambaram here tomorrow.

“The joint meeting of the central trade unions strongly denounced the unilateral notification made by the Centre fixing 8.5 per cent interest rate for EPF,” a joint statement said. The Congress-affiliated INTUC was, however, not present at the meeting.

Seeking the reversal of the decision, the statement said the unions would “protest against this outrageous decision and hold massive demonstrations in workplaces throughout the country on January 20".

Trade union leaders said they would raise the issue with the finance minister when they meet him as part of the pre-budget consultations.

The statement said, "The notification came despite the categorical assurance made by the Prime Minister at the Indian Labour Conference to consider the demand of the trade unions for the restoration of the interest rate on PF to 9.5 per cent".

“Such unilateral approach of the government is violative of the commitment made by the UPA in their NCMP on dealing labour-related matters based on consensus,” it said.

The unions demanded the government to increase the interest rate on special deposit scheme (SDS) of the government where 65 per cent of the fund was invested.

Notifying the 8.5 per cent interest rate, the Labour Ministry said the Employees Provident Fund Organisation would have to pay Rs. 6,889.04 crore as interest to its subscribers for the current financial year while its projected interest income will be Rs. 6,523.15 crore.