Sahib Singh for cut in EPF interest rate

NEW DELHI: In a clear shift in stance from his predecessor, the new labour minister, Sahib Singh Verma, may overturn the line adopted by Sharad Yadav on the interest rate for employees provident fund (EPF) and on the radical law for lay offs envisaged in last year’s budget.
He supports the finance ministry recommendation that the interest rate should be reduced.‘‘I strongly feel that the recommendation is rational and the matter will be discussed on Tuesday by the central board of trustees (CBT) of EPF,’’ Verma said on Friday.
On the controversial amendments to the industrial disputes (ID) Act, he did not subscribe to the view that the proposed changes in the Act would amount to the adoption of a hire-and-fire system in the country. Except for the term ‘hire-and-fire’, he felt there was nothing wrong with it.
An impression was being created that workers would be thrown out on the whims and fancies of the management. ‘‘If someone is incompetent, he should be given a chance to improve. If he does not, he should be removed,’’ he said.
The proposal is to allow companies employing upto 1,000 workers to effect lay offs, retrenchment and closure without government permission. Presently, such action can be taken only by those companies which employ less than 100 persons.
After the controversy over the proposed amendment, the national labour commission has suggested that the limit be pegged at 300.