PSUs default on workers' state insurance

SHILLONG, February 15: More than private establishments, state government undertakings are reported to be major defaulters of the Employees' State Insurance (ESI). The ESI is a statutory social security scheme for workers in the organised sector and created under an Act of Parliament. Defaulters also include a few newspaper houses of the state. In terms of cash, they have defaulted in payment of more than Rs 60 lakh as the employers' share into the fund. However, many defaulters have now prayed to be allowed to pay in instalments to make up for the loss. Regional director of ESI Corporation D.N. Pegoo told The Telegraph that the scheme could not make much headway here because the state ESI office could not present a "satisfactory image on its role". He said, instead of registering an increase, the number of employees and units decreased over the years. "We had around 3,000 registered employees during the late Eighties, but today the figure is just 1,950," he said. He added that the health benefit scheme, a major component of ESI, could not be implemented adequately. The main problem, employees said, was that the ESI dispensary here did not function properly. Even the doctor was seldom available, they said. This was, in fact, corroborated by the regional director. The dispensary, which should be maintained according to the number of employees registered under the scheme, is already over-staffed. It is run by the labour department. Sources said government authorities were the main stumbling block in the implementation of the scheme. The government had contended that the Act could not be implemented in tribal areas as it was a Central government one. Sources added that the law department had "misled" the government on this point. The government accepted the Act only after the Supreme Court, in a separate but related case, ruled that the Act, which is for the benefit of workers, applied without prejudice to the tribal areas. Nearly 125 factories or business units in the Shillong area are registered under the ESI. With the rise in industrial activities at Byrnihat in Ri Bhoi district, the ESI is planning to implement the scheme there. Twenty-six new factories with nearly 1,789 employees have come up there. Four more factories with 500 employees are also likely to be commissioned soon.