Several unions are calling for workers' representatives on the board of the Employees Provident Fund to resign since they have not been effective in representing workers' interests.

S Somahsundram, general secretary for the Non-Metallic Mineral Products Manufacturing Employees Union, said that workers are unhappy that the five representatives have not been able to negotiate for a higher dividend rate.

"If these people are not effective and have not been able to represent workers' interests or if the board is not sensitive to the workers' need, then these representatives should resign," he told malaysiakini today.

"This is not the first time we have been disappointed. If EPF does not listen to our representatives, then what is the point of sitting on the board - leave and let's take real action," he added.

Yesterday, Malaysian Trades Union Congress president Zainal Rampak was reported to have said that MTUC representatives in the EPF board have requested for a higher dividend, but had to go along with the majority who accepted a six percent rate, the lowest in 25 years.

Reasons stated by EPF, which now has 9.7 million contributors, for the low dividend rate were that the fund now has a broader membership base and has registered RM748.68 million of unrealised losses in equity portfolios.

More action preferred

Somahsundram said workers at grassroots level had preferred more action, like a picket outside EPF to show their outrage instead of negotiating on the board or setting up committees to study matters.

He added that workers are disappointed with MTUC's stand regarding EPF issues and do not agree with the "we'll wait and see" attitude often taken by leadership.

"We had proposed to picket outside EPF to protest against issues which do not serve workers interests at all but MTUC leadership has asked us to wait," he said.

"They said, 'Let's give the new chairman a chance to work things out.' What do we care about the new chairman? We are taking up issues with the department, not the chairman," he added.

On Jan 20, MTUC's general council deferred a picket outside EPF to protest against the EPF annuity scheme, a pension scheme run by several appointed insurance companies, which the Consumers Association of Penang had found in a study to be disadvantageous to workers.

Government backing

Kamarus Zaman Mansor, president of Metal Industry Employees Union, said that if there is no restructuring in the EPF department or improvement in the board, he will not be surprised if profits for contributors continue to fall to as low as 2.5 per cent, the minimum stipulated in the EPF Act.

He urged MTUC to take more proactive steps to pressure EPF and echoed Somahsundram's call that those on the EPF board, if not effective, should resign so that better ways could be explored to represent workers' interests.

Meanwhile, Syed Shahir Syed Mohamud, executive secretary of the Transport Equipment and Allied Industries Workers Union, said that workers did not understand the huge amount of unrealised losses suffered by EPF as the fund had said that it was backed by the government and had a team of experienced international fund managers.

"So has the government and experienced international fund managers advised EPF wrongly?" he queried.

"If other funds like Tabung Haji can record an 8 percent dividend rate during the economic crisis and have registered a broader membership base too, what is wrong with EPF?" he added.