Wednesday, January 12 2005 19:38 Hrs (IST) - World Time -

New Delhi: Accusing the UPA (United Progressive Alliance) Government of not adhering to the Common Minimum Programme (CMP), all major trade unions today (Jan 12, 2005) asked the Centre to change its policy direction, while opposing divestment of PSUs and FDI cap hike in some sectors and demanding restoration of 9.5 per cent interest rate on EPF.

"People are in no mood to wait further. Eight months have passed. Government should fulfil the promises made to the people during the election", AITUC (All India Trade Union Congress) general secretary Gurudas Dasgupta told reporters after he and other union leaders met Finance Minister P Chidambaram to give their suggestions on the Union Budget for 2005-06.

"The UPA was voted to power not just for secularism, but for a new economic policy which would serve the people, especially the downtrodden," Dasgupta said.

At their meeting, the unions also sought provision of more funds in social sectors including ten per cent of the budget on education, social security for agricultural, unorganised and organised workers, setting up of 6th Pay Commission, Wage Boards for different sectors, including newspaper industry, progressive hike in corporate tax and higher income tax rate for those earning over Rs ten lakh.

They also demanded scrapping of Fiscal Responsibility Management Act, saying the Government should not be constrained by the gap between fiscal and revenue deficit.

"The question is how to frame tax laws to mobilise huge additional resources to fund additional expenditure. Those who have a capacity to pay must pay for more jobs, for food for the hungry and shelter for the homeless," Dasgupta said.

Opposing the disinvestment of profit-making PSUs, the union leaders also demanded that the Government bring down the caps on FDI in telecom, insurance, banking and aviation sectors.

CITU (Council of Indian Trade Unions) president M K Pandhe said, "We oppose the setting up of pension regulator PFRDA and the new defined contribution scheme, where the pension contribution of Government is curtailed."

The trade unions also wanted an amendment to the Bonus Act to make all employees entitled to bonus, which was at present paid to only 95 per cent of the workforce.

They flayed the Government for its policy of downsizing the workforce and disinvestment of PSUs, saying UPA needs to rethink on the sell-off process.

Seeking "further universalisation" of the Employment Guarantee Scheme, the unions also sought coverage of urban slum-dwellers and fixing of a relevant minimum wage while guaranteeing 100 days employment to "all unemployed able- bodied persons in the country".

Pandhe accused the Government of "totally bypassing the CMP and said the last budget did not fulfil the promises made in the programme. Bharatiya Mazdoor Sabha's Uday Patwardhan demanded a consultative group for identifying jobs for the employment guarantee scheme.

G Sanjeeva Reddy of Congress-affiliated Indian National Trade Union Congress said the Government needs to focus on small-scale industries, self-employment schemes to boost employment while suggesting an "unemployment relief" for educated youth and skilled workers.