Non-payment of provident fund arrears, wages and salaries accounted for 75 per cent of the dues. This was revealed at the meeting of the parliamentary consultative committee attached to the ministry of labour here on Friday.

The members expressed concern at the state of affairs and demanded legal action against the guilty managements. Law should be enforced in letter and spirit and without showing any distinction between the private and the public sector units, they said.

Labour secretary LD Mishra informed the committee that it was "highly unethical and illegal" on the part of the managements of the undertakings to make notional deductions for provident fund without actual payment to the fund. Being a criminal offence, the defaulting PSUs were liable to be prosecuted, he said.

The representatives of the employing ministries explained that the current dues on account of statutory obligations and wages would be met fully. However, arrears were the result of earlier stipulation on the financial support for the payment of wages on net rather than gross basis.

The expenditure secretary disclosed that the finance ministry would now provide budgetary support for wages on gross basis. He also said that highest priority would be accorded to the payment of wages and statutory dues of workers in any budgetary support for PSUs.

However, he said decision on the revival of non-operating sick units should be expedited to avoid payment of idle wages.

Labour minister Satyanarayan Jatiya warned that drastic legal action will be taken if the concerned departments and PSUs did not show any progress in clearing the arrears. He assured the members that his ministry would not support directly or indirectly any violation of labour laws.

Jatiya also informed that a committee under the chairmanship of SR Satyam has been constituted to look into the quality of service, supply of medical equipment and drugs and the level of satisfaction among the beneficiaries of the ESI hospitals. The committee would submit its report within six months.