Govt, unions should resolve Bill issue: CPM

With the three Left-ruled states divided on Finance Minister P Chidambaram's interim investment pattern for pension funds pending the passage of the Pension Funds Regulatory & Development Authority (PFRDA) Bill, the CPI(M) today sought to wriggle out of its dilemma by asking the government to sort it out with trade unions.

The Left party, which has been primarily responsible for stalling the passage of the pension Bill so far, is not inclined to join issues with the UPA regime on the FM's interim plan which unfolded at the recent chief ministers' meeting here.

"Let the government and the working class representatives sit together and come to an understanding," CPI(M) Politburo member Sitaram Yechury said today.

Yechury, who represented the Left at the negotiation table to break the deadlock on pension Bill, refused to go into the merits or demerits of Chidambaram's proposal. CPI(M)-affiliated trade union CITU has vehemently opposed the proposal to invest 5 per cent of the funds in equities terming it as a 'retrogade step' and demanding from the government to drop the idea of bringing a notification to implement it.

The senior Left leader skirted all queries about CITU's stance and about the reasons for the Left's silence on interim investment plan.

"We have told the government to invite trade unions to have a discussion. After all even on the issue of merger of the Indian Airlines and Air India, talks with workers' representatives had proved to be successful. If the government does not do that (on pension reforms), it is going to be a problem ," Yechury told the Business Standard.

CPI(M) leadership's dilemma emanates from the differences of opinion about the government's proposal among Left-ruled states. While West Bengal rejects the proposal, Kerala and Tripura, despite their stated opposition at the CMs' meeting, are not averse to it.

Kerala Chief Minister Thomas Isaac was learnt to have impressed upon the party leadership recently that West Bengal might afford to reject pension reforms due to significant increase in tax collection after the introduction of Value Added Tax in the state, Kerala and Tripura do not enjoy such advantages accruing from VAT and therefore, they would like the party to do a re-think about the government's proposal.

The CPM leaders are also learnt to be willing to accept FM's proposal on an experimental basis, but have been unable to convince CITU for it.