Provident Fund (PF), the long-term saving of the workers, should attract a reasonable return. The rate of interest in recent years has been slashed to 9.5 per cent, which is likely to be reduced further. The effect of inflation has been totally ignored while determining the interest rate. It is essential that the investment pattern of PF be relooked into and a new pattern should be devised so that workers can get better returns.
No separate fund for pension payable to government employees exists today. It is, therefore, urged that workers’ capital, like PF, deposit-linked insurance, PF-linked pension, gratuity, etc., be brought together and vested in an autonomous “workers capital trust” for the purpose of investment management and administration. The trust may function as an institutional investor and invest funds not only in the equity market within the country but also abroad.
Since the government has decided that for revival of sick industries the workers will be taken into confidence, we feel workers should be given the first option to take over these industries, and for that the government should waive accrued liabilities and provide reasonable working capital.
Workers participation in management should be ma-de mandatory and to facilitate the process there should be reservation for equity participation by workers.
Also, we propose that the Bonus Act be amended to embrace all salaried employees, irrespective of quantum of salaries.
Unorganised workers co-nstitute two-fifths of the total population of our country, yet they are not covered by any law. As the government cannot evade its responsibility, it is necessary that the Budget proposals come out with an effective recommendation as to the modus operandi for providing employment guarantee as also social security to unorganised sector workers.
— The Author is President, INTUC
