BENGALURU: With the Joint Action Committee (JAC) of trade unions of four state-run transport corporations calling for a “Bengaluru chalo” protest on Thursday, the state government on Wednesday announced that it will clear 26 months’ salary arrears of employees and officers of the corporations.
Office-bearers of JAC, however, maintained that discussions on the quantum of wage hike remained inconclusive. They said they will go ahead with the protest on Thursday. Bus services will not be affected as only employees, who are off duty, will participate in the protest.
According to a notification issued by the government, special grants of Rs 1,271.92 crore will be released towards arrears.
Arrears for 14 of the demand for 34 months — from January 1, 2022, to February 28, 2023 — will be paid based on the recommendations of a one-member committee headed by retired official Srinivasa Murthy. This component involves Rs 718.93 crore.
In addition, arrears for 12 months -- from January 1, 2021, to December 31, 2021, amounting to Rs 552.99 crore -- will be released. The government issued an order to commence negotiations with the trade unions to finalise the percentage of wage increase, which will take effect from April 1, 2025.
Explaining the reasons for the delay, the notification stated that wage revision was announced in March 2023 without any budgetary allocation, and the arrears issue was referred to the committee.
It said retirement-related dues of Rs 224 crore have been cleared, although the fund earmarked for the purpose was not available.
Highlighting the fragile financial position of the transport corporations, the government pointed out that liabilities amounting to Rs 4,900 crore accumulated between 2019 and 2023. To clear provident fund and diesel dues, the corporations were permitted to raise Rs 2,000 crore bank loans, with the state bearing the principal and interest components.
Over the past two-and-a-half years, 7,800 new buses worth Rs 3,510 crore have been inducted and 10,000 recruitments made. Currently, 80.87% of daily revenue is spent on diesel (34.5%) and staff costs (46.37%). Motor vehicle tax dues of Rs 1,219.23 crore have also been waived.
Meanwhile, Vijay Bhaskar, general secretary, KSRTC Staff and Workers’ Federation, told TNIE that the federation accepted the reduction of arrears from 38 to 26 months. However, the wage hike percentage has to be decided. “It is not final. They announced that it will be discussed with the unions,” he said.
BJP extends support to transport protest
The Karnataka BJP has extended its support to the protest called by road transport corporations across the state on Thursday. BJP state President BY Vijayendra has written to Chief Minister Siddaramaiah urging him to clear the arrears of transport employees from January 1, 2024. Vijayendra said not clearing the transport arrears shows administrative failure of the state government. “There is a limit to workers’ patience.”