NEW DELHI : In a move that could significantly reduce the influence of trade unions on the Employees Provident Fund, the labour ministry has proposed to halve the number nominees of employees on the Central Board of Trustees of the fund from a maximum of ten to five.
The ministry has also proposed to reduce the maximum number representatives of the employers and state governments on the board of trustees from 15 and 10 to eight and five respectively.
However, the ministry’s proposal maintains the number of central government nominees on the board of trustees at five. The ministry has also proposed to limit the maximum number of consecutive terms representatives of employers and employees can serve on the board to two.
Trade union representatives have been the biggest stumbling block in Employees Provident Fund investing its funds in equity markets. Though the finance ministry has allowed the non-government provident funds to invest up to 15% of its incremental corpus in equity markets, the board of trustees has not allowed it due to opposition from trade unions. -Cogencis