In the light of the recent strikes by migrant labourers from North India in three units of Tirupur knitwear garment cluster, who make up for the large workforce shortage in the region, TEA President Dr A Sakthivel has urged the Ministry of Labour and Employment, once again, to withdraw the recent amendment in the Employees’ Provident Fund Scheme, 1952, which makes it mandatory for a worker to attain the age of 58 before he can be eligible to withdraw the employer’s contribution to his account.
Also Read – TEA demands withdrawal of recent amendment made in EPF scheme
As per a notification issued by the Ministry, dated February 10, 2016, a new para 68 – NNNN has been introduced in the Employees’ Provident Fund Scheme, under which employees can withdraw the PF account from his own total contribution, including the interest accumulated up to the date on cessation of employment, but will be eligible for the employers’ contribution to the account only after the age of 58 years.
This decision has alarmed the workers in Tirupur cluster, particularly the North Indian workers, who have migrated from states like Bihar, Orissa and UP, as well as Nepal. Besides, the Tirupur cluster also provides employment to other southern and northern districts of Tamil Nadu and the neighboring state of Kerala.
Labourers at three units in Tirupur have already took to staging strikes and have sought from the management an immediate settlement of the contribution made by both employees and employers.
According to the TEA President, the situation is increasingly becoming difficult to handle, with the workers refusing to accept the government’s decision.
Sakthivel said that he had appealed to Union Minister of State for Labour and Employment Bandaru Dattatreya to examine the rule and withdraw the amendment immediately, permitting workers to get employers’ contributions as well, while leaving the job instead of waiting for 58 years.
Dr Sakthivel has also approached Shankar Agarwal IAS, Labour Secretary and Dr V P Joy IAS, Central PF, Commissioner to do what needs to be done to help the workers in Tirupur.
“Tirupur cluster gets migrant workers from North India, numbering about 75,000, and moreover, the inflow of the northern states workers are still increasing day by day, which is actually helping in meeting the labour shortage in Tirupur,” read Sakthivel’s letter to the Union Minister of State for Labour and Employment.
“These workers have started complaining on the issue and resorted for strike in three / four units. Due to this, the production is getting affected, and the units would face difficulties in meeting the export delivery schedule. These units may not only incur financial losses, but also future orders. As a result, it is possible, they may leave Tirupur after four or five years, depending on the situation and opportunities emerging in their native places,” he added.
“We fear that the notification may trigger an exodus of migrant labour from North India, and in such a scenario, the garment exporting units would not be in a position to immediately fill up the labour shortage gaps, and ultimately, the exports business will drastically reduce from the present export level of Rs 23,500 crore, and will also in fact, affect the labours who would continue with the exporting units,” the letter also said.
The TEA president also sought relief measures for the workers and removal of the condition put forth in the notification with immediate effect, allowing workers to get the employer’s contribution portion of the EPF as well, so that it will help them financially while leaving work for a relative’s weddings or to return to their native land to start a new enterprise.
