Faced with violent protests in Bengaluru and brewing unrest across the country among the working class, the Government on Tuesday revoked the order, tightening rules for withdrawal of money from Employees’ Provident Fund (EPF) soon after, saying it will be kept in abeyance for three more months till July 31. The decision was to be implemented from February 10 but was later put on hold till April 30.
“The notification issued on February 10, 2016 is cancelled. For now the old system will continue,” Union labour Minister Bandaru Dattatreya said at a Press conference in Hyderabad. He added, “I will take ratification from Central Board of Trustees (CBT) of Employees’ Provident Fund Organisation’s (EPFO).”
Explaining the rollback, Dattatreya said, “The reason is the request of trade unions. The earlier decision (to tighten the EPF withdrawal norms) was also taken on recommendations of the trade unions. Now, when the trade unions are requesting, then we have rolled back the decision.”
The Government swung into action to contain the brewing unrest in the working class after violence rocked Bengaluru for the second day when garment industry workers torched several buses and attacked a police station protesting against the tightening of rules.
Earlier in the day in New Delhi, the Minister had said, “The notification (tightening EPF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders.”
Dattatreya said employees and workers need not have any misconceptions in the wake of the cancellation of the notification. The decision would have barred withdrawal of the employer’s contribution from the EPF money till the age of
58 years. In a placatory move, the labour Ministry also said it was contemplating permitting withdrawal of all accumulations by EPFO subscribers on grounds like purchase of house, serious illness, marriage and professional education of children.
The matter has been referred to law Ministry for clearance.
Throughout the day, thousands of garment workers and unorganised sector workers went on rampage in the Industrial suburbs across the Bengaluru city. The protesters blocked many highways connecting Chennai-Mumbai and other cities. Bengaluru has hundreds of garment units with estimated 12 lakh workers.
A teenager suffered bullet injuries as the police opened fire to quell a rioting mob of garment workers agitating against the new norms for withdrawal of funds from the Employees Provident Fund. According to reports, a teenaged girl Preeti, a bystander, suffered bullet injuries in the leg and was admitted to a local hospital. She was reported out of danger with bullet removed.
Several buses and other vehicles were set on fire and a police station at Hebbagodi on the outskirts of Bengaluru was attacked by workers, who were protesting against the new provident fund rules. The Police had to resort to lathicharge and fire teargas shells to control the spontaneous agitation by the garment workers.
At least two Karnataka State Road Transport Corporation buses and one of Bengaluru Metropolitan Transport Corporation were set on fire.
Incidents of stone-pelting on buses and other vehicles were reported from different parts of the city such as Bannerghatta and Jalahalli cross, as also near the Electronics City, the hub of IT firms.
Traffic jams were reported at various entry and exit points in the city like Hosur Road, which leads to Electronics City and Tumkur Road, which has a large concentration of garment units.
City Police Commissioner NS Megharikh said the situation was under control, but there “are some issues” on the city’s outskirts.
“...we are at work, our officers are at the spot, reinforcement has already gone there. The situation is being brought under control,” he said.
State DGP Om Prakash said the situation went out of control at Hebbagodi and Jalahalli, where reinforcements had been sent. The situation was being monitored by Additional Commissioner of Police.