CHENNAI: Employees of State Transport Corporations have alleged that funds collected via Employee Contributions are being used as working capital for daily expenditure of the corporations.
Citing a report by the Comptroller and Auditor-General, Express had reported in 2010, that 34,000 pensioners will be left dry by 2018 as the funds were being diverted.
Nearly seven years later, employees still complain that their contributions are being misused as the corporation lacks enough operating funds. “Employees’ contribution such as Provident Fund, gratuity which we contribute believing that it will benefit us, are never available to us when we need it the most.
"Every time one of us ask for emergency medical loan or wedding loan for our daughters from Provident Fund, we’re met with the reply that there isn’t enough money,” said P Balakrishnan, president of CITU (MTC workers union).
The situation is similar for those trying to obtain pension. “I retired in January 2016 and I won a case after a year of fighting. They’ve agreed to give my retirement benefits in 12 instalments with only six per cent interest after so much struggle,” said an ex-MTC staff who didn’t wish to be identified as he’s expecting the remaining instalments to be settled. There are about 65,000 pensioners in MTC alone.
According to employees, the transport corporation is facing a severe funds crisis which has led to the situation. “On an average Rs 32 is spent per km but only Rs 27 is earned per km. And all buses put together, run at least a crore km a day. This puts the daily loss at Rs 5 crore and yearly loss at Rs 1,825 crore,” estimated Jayalakshmanan J, general secretary, AITUC (MTC workers union).
Employees have now received notice of lapse of insurance policy from LIC as premium has not been paid by the corporation, said P Anbazhagan, district secretary of AITUC. “We joined the corporation because of benefits that you get with a government job. But we have to lose respect and fight persistently for what is rightfully ours,” he rued.