Mumbai, Feb 27: Trade unions are gearing up to the resist the finance minister's move of issuing government-guaranteed bonds to public sector employees opting for voluntary retirement schemes (VRS). The issuance of bonds to "retrenched" employees which can be used as collaterals to borrow money from the banks is likely to turn out to be just a `paper scheme', leading labour experts and union leaders said. Intuc general secretary Raja Kulkarni has vowed to oppse the policy tooth and nail. "The workers should be consulted before taking any policy decision which affects their interest. The need of the hour is to reduce non-labour expenses of the PSUs, " he said.Finance minister Yashwant Sinha has proposed to encourage public sector enterprises to issue bonds to the workers opting for for VRS. Under this scheme, the central government proposes to guarantee the repayment of such bonds and also reimburse the full interest payments. According to the budgetary proposals, the Reserve Bank of India will issue necessaryinstructions to banks to accept bonds as collateral for loans to workers who may need assistance.However, leading labour union leaders are sceptical about the functionality of these bonds. Wondered leading labour advocate Colin Gonslaves: "When the state and the central governments themselves are bankrupt how will they have money to pay off the workers? This is another way to cheat the workers and rob them of their employment."
All India Chemical Workers Union leader GR Khanolkar said, "There is no gurantee that the banks should lend when the workers want the money. The banks, particularly the State Bank does not even entertain income tax from the employees. The banks may even demand a certain part-payments from the workers before making the payments. Above all, the state and the central machinery should work in tandem to relase the money required by the workers. Undue delays will defeat the purpoose of the bonds."
Ashok Singh, convenor of the oil sector officers confederation, said: "Bonds for theretiring employees is the need of the hour. It will save both the organisation as well as the employees. The government gurantees are always valuable to release funds. This will be very useful for the marginally profit-making units to recuperate and turn healthy again." The government over the years has been providing budgetary support to central public sector enterprises for rationalising manpower under the VRS.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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