Considering the coming election, the Central Board of Trustees (CBT) of Employees Provident Fund (EPF) Organisation has fixed the interest rate 8.5% on PF deposits for 2007-08 on the basis of majority vote going against the government's proposal of reducing it to 0.25%. However the representatives of trade unions were not happy with this decision. They were asking 9.5% interest.
Union Minister of state for labor Oscar Fernandes, who was heading the meeting, had said in a released statement, "After considering the facts, the board noted that an interest rate of 8.5% can be declared as sustainable rate." Five representatives have exercised their votes in the favour while four others have opposed. One representative of finance minister was not present in the meeting, who could influence this decision by casting his valuable vote.
Finance Minister P Chidambaram has asked written clarification to the absentee, "Why was he absent in that crucial meeting?"
W R Varadarajan from Centre for Indian Trade Union (CITU), A D Nagpal of Hind Mazdoor Sabha (HMS), D L Sachdeva of All India Trade Union Congress (AIITUC) and Sankar Saha from United Trade Union Centre-Lenin Sarai (UTUC-LS) had protested the decision by giving a signed protest note.
"We reiterate that any interest rate below 9.5% cannot be accepted especially in the present high interest rate regime prevailing in the entire financial sector. We record our opposition to the majority decision at this 181st meeting to declare a rate of 8.5%." said angry TU member.
Though government had sent its proposal to CBT for fixing the interest rate only 8.25% but realizing the forthcoming election, it became agree to approve the recommendation of CBT at 8.50%.
"Earlier NDA, had promised to keep the interest above 9% when it was ruling. Prime Minister, Manmohan Singh has also promised to keep the rate on the same level", said AITUC’s Comrade Sachdeva. "This is outright misuse of workers’ money," he added.
More than 4 crore registered member of EPF would be benefited from this and government will have to bear extra burden of estimating Rs. 263.78.
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