Unions seek unified fund manager

PM 'positive' on demand for workers' capital trust.

Even as the UPA regime continues talks with its Left allies to push through the Pension Fund Regulatory and Development Authority (PFRDA) Bill, Prime Minister Manmohan Singh has shown interest in suggestion by the trade unions for a workers' capital trust that will manage provident funds along with all pension and gratuity matters.

According to Sanjeev Reddy, president of the Congress-affiliated Indian National Trade Union Congress (INTUC), who proposed this at a meeting between the prime minister and the central trade unions on Saturday, the trust can have representation from both the workers and the government.

Reddy said an integrated fund could provide better returns.

The prime minister said the proposal merited "due consideration." He also agreed to consider the trade unions' suggestion for abolition of contract labour.

Trade unions said the existing Act on bonus covered only around four per cent of the workers because of the salary limit of Rs 3,500 per month. They wanted bonus for all the workers.

"I agree that the current ceilings were set more than a decade ago. We will soon consider this in the Cabinet and take a favourable decision," the prime minister said.

The prime minister and the ministers present at the meeting, including the labour minister, refrained from mentioning the contentious PFRDA Bill, the Banking Regulation (Amendment) Bill or labour reforms, which remain stalled due to opposition from the Left-backed trade unions.

As for the trade unions' complaint about the violation of labour laws and their demand for social security and better working conditions, the prime minister said he would write to all the chief ministers for effective implementation of labour laws and consider setting up a working group comprising all stakeholders to suggest ways to move forward on these issues.

Welcoming the prime minister's assurances, RSP leader and General Secretary of the United Trade Union Congress (UTUC) Abani Roy said, "The real test will come when the PM has to implement his commitments."

The trade unions alleged that labour laws were not being enforced in export processing and special economic zones and the workers who tried to organise themselves were being victimised.

They demanded that trade union representatives be permitted to visit these zones along with the officials of the labour department. The prime minister, however, did not give any assurance on these demands.

On disinvestment, the prime minister said the UPA government's emphasis was on reviving even the loss-making PSUs. The government has received recommendations for the revival of 32 PSUs out of which 20 have been approved.

Revival packages to the tune of over Rs 5,600 crore have been approved. The prime minister said the government had released Rs 1,800 crore of wage and other dues to the employees of loss-making PSUs.