TAG: GS 2: GOVERNANCE
THE CONTEXT: The recent reconstitution of the Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) by the Centre has sparked controversy due to the exclusion of representatives from major Opposition trade unions, namely INTUC, AITUC, and AIUTUC.
EXPLANATION:
- The move has elicited strong reactions from trade unions, while the Centre argues that these organizations have structural issues.
- This analysis delves into the implications of this decision and the dynamics at play.
Composition of the New Panel
- The new CBT, which will serve a five-year tenure, features ten representatives each from both employees and employers.
- Notably, prominent Opposition trade unions like INTUC, AITUC, and AIUTUC have been omitted.
- On the other hand, Laghu Udyog Bharti, an employers’ organization supported by the RSS, has secured two members.
- The absence of representation from All India Manufacturers Association also stands out.
Protests from Opposition Trade Unions
- INTUC President expressed surprise at the exclusion, emphasizing that these unions represent millions of workers.
- The move has been perceived as an injustice, particularly as three posts had been kept vacant for INTUC in the outgoing panel.
- AITUC, one of the oldest trade unions in India, plans to protest the decision, highlighting its strong historical presence.
Structural Issues and Leadership Claims
- The Centre contends that the exclusion is due to structural issues within these trade unions.
- There are multiple groups claiming leadership over INTUC, leading to its exclusion from government panels.
- This ongoing leadership tussle has hindered the representation of these unions in crucial bodies.
Trade Union Coordination Centre, SEWA, and NFIITU as New Entrants
- In lieu of the excluded trade unions, the Centre has introduced the Trade Union Coordination Centre, Self Employed Women’s Association (SEWA), and the National Front of Indian Trade Unions (NFIITU) to the panel.
- The inclusion of these entities reshapes the composition of the CBT, potentially altering the dynamics of decision-making.
Government’s Approach and Tripartite Mechanism
- Critics, including senior CITU leader, argue that the government has consistently weakened the tripartite mechanism.
- The exclusion of major trade unions is seen as part of a broader trend that marginalizes certain voices within the tripartite structure.
Consultation and Opposition’s Demand for Referendum
- Government sources claim that the selection of members involved consultation with trade unions, with each union asked to submit three names for inclusion.
- However, ten central trade unions opposed this and decided to send only one name to the government.
- The demand for a referendum to determine the exact membership of each organization remains unmet.
Employees’ Provident Fund Organisation (EPFO):
- It is a statutory body that came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act, of 1952.
- The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.
- The Board administers a contributory provident fund, a pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
- It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it.
- The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 122 locations across the country.
- The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
Conclusion: Shifting Dynamics and Advocacy for Representation
- The exclusion of major Opposition trade unions from the EPFO governing body reflects ongoing challenges related to leadership disputes and the BJP government’s approach to tripartite mechanisms.
- The entry of new entities introduces a different set of voices, potentially altering the decision-making landscape.
- The protests from excluded trade unions highlight the broader struggle for representation and the dynamics of industrial relations in India.
