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PF Withdrawal: MSMEs support demands of garment labourers; raise concern over crores of loss incurred

Updated: Apr 19, 2016 10:48:23am
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New Delhi, Apr 19 (KNN) A week after the jewellery traders called off their strike against excise, thousands of labourers from the garment sector in Karnataka have come out to street to protest against the amendment to the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

On Monday the protest was held in Hosur road and Mandya in the outskirts of Bangalore resulting into massive traffic jams for hours. Today the protest is being held in Peenya Industrial area and Bomanahalli in which more than 10,000 workers are taking part.

According to the new rules on withdrawal of Employees' Provident Fund, beginning May 1, employees won't be allowed to withdraw the entire Provident Fund (PF) amount if they are below the prescribed retirement age (58 years). The rule states that should the employee withdraw the amount after quitting and remaining jobless for two months, he/she will be eligible to withdraw only the contribution made towards the PF by the employee and the interest earned thereof. The person, however, won't be able to withdraw the entire amount. He/she will get the employer's contribution only at the age of 58.

However, in a latest development, Bandaru Dattatreya-led Labour Ministry has relaxed the recently announced provident fund withdrawal norms besides differing its implementation by three more months to August 1.

According to the ministry of labour and employment, the relaxed norms will enable people to withdraw the employers contribution of 3.67% to PF for housing, medical emergency, education of children and for their marriage purposes.

Rukmini, President, Garment Labour Union, told KNN, “Today lots of protestors have come and are protesting in Mysore road, Peenya Industrial area and Boamanahalli. They want the earlier rule back where the workers are allowed to withdraw their PF when required. The workers in the garment units get very small salaries; only supervisors get 20 thousand plus, the tailors helpers get only Rs 6,000 - 7000. The new rule that has come is applicable from May 1.”

Rukmini, who has worked herself as a tailor in the garment factories for 23 years, said, “This is very difficult. Will we live till 58? There are so many needs that come up in family like marriage, education health. For all those we need money and with the small salary we get we cannot pay for other needs. Basic needs like food and house rents take up all the salary.”

Meanwhile, Peenya Industries Association President K.B.Arasappa told KNN that the industry is fully supporting the cause that the workers are protesting for.

He however pointed that, “Since morning all factories are closed, vehicles have been burnt and properties have been damaged. The loss has already gone into crores. There sole demand is about the PF.”

“We support the protestors thinking that their cause is genuine. MSMEs and all kind of employers will suffer due to this protest. Central government has to take a decision soon,” he added.

The protest has taken a toll on the traffic jams in some areas of Bangalore and has forced many units to shut down.

Mukesh Kalra, Joint Secretary, FISME, who is currently in Bangalore to attend a meeting, said, “There was a massive jam for 7-8 hours in Hossur yesterday. Today also I have a flight but the traffic is bad. Many roads are badly affected.” (KNN Bureau)

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