Volume 5, No. 9, September 2004

The Congress government’s1% reduction in the interest rate on the EPF (Employees Provident Fund) is nothing but the continuation of the BJP governments continuous anti-people reduction of the rate. Over the past couple of years the BJP has reduced the interest on the EPF from 12% to 9.5%. It had time and again threatened to reduce it to 9%, but due to the elections it hesitated. Not so the Congress Government (propped up by the CPI/CPM in two) which is desperate to prove its credentials to its imperialist masters. Of course, the already announced policy of the Central Board of Trustees of the EPF Organisation is to leave the interest rate as per the trend of the market. The bond market rates are around 7%. This step of the Congress is nothing but a move in this direction, which will mean nothing but disaster for 3 crore families.

No doubt after the usual drama of false protests by the opposition unions, both ‘left’ and ‘right’, the government will probably raise the rate to 9%. This is standard procedure to help the CPI/CPI(M) maintain its credibility as they can then claim credit for the partial restoration of the rate. But even a 0.5% drop in the rate means hundreds of crores snatched away from the pockets of the working class and employees. This will impact 3 crore subscribers or the lives of about 15 crore people – over 15% of the countries population. Such draconian measure will only help the government to rob the working people of their money to the tune of thousands of crores.

Given that this government has taken the unprecedented step to pass a legislation to curb the fiscal deficit, more such pernicious measures that effect the lives of the masses are bound to follow. The worst is that the present measure impacts mostly the aged who require these meagne savings for their very survival. The inhuman imperialists and their local agents will not spare ever the elderly in their insatiable greed for profits.

This cut in interest rates must be vehemently opposed by all. The opposition unions have given a call to observe Sept. 20 as Demands’ Day. Let us mobilise workers/employees in lakhs to turn a mock protest into active calls to action – through strikes, demonstrations and gheraos of the labour ministry in all states and at the centre. Let us also demand that the EPF interest rate be restored to its original level of 12% .

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