What the flash strike tells us about MTC
TNN | Jul 2, 2019, 06.53 AM IST
CHENNAI: Office-goers and students were put to inconvenience on the first day of the new working week when crew of government-run Metropolitan Transport Corporation (MTC) buses resorted to a flash protest. Protesting workers’ unions claimed that their monthly salaries were not credited as promised on Monday.
“Commuters were forced to travel in already-full local trains,” said T Sadagopan, a regular MTC bus user from Avadi. West Chennai was worst affected as buses did not leave five depots including Avadi right from 5am.
TNN | Jul 2, 2019, 06.53 AM IST
CHENNAI: Office-goers and students were put to inconvenience on the first day of the new working week when crew of government-run Metropolitan Transport Corporation (MTC) buses resorted to a flash protest. Protesting workers’ unions claimed that their monthly salaries were not credited as promised on Monday.
“Commuters were forced to travel in already-full local trains,” said T Sadagopan, a regular MTC bus user from Avadi. West Chennai was worst affected as buses did not leave five depots including Avadi right from 5am.
Transport minister M R Vijayabaskar met the staff, gave assurances and services resumed around 12.45pm when salaries got credited.
MTC said the payment was delayed because external financial support did not come in time. Somehow, it managed funds for salaries this month. But from the episode it is evident that the once profit-making body is struggling due to a financial crunch. It is also ironical that despite enjoying a monopoly, more than 35 lakh passengers — one-fourth of city’s population — travel in 3,200 MTC buses every day, MTC has empty coffers.
“The amount spent towards salaries is increasing exponentially. Salaries of 21,000 employees contribute to 52% of the operational cost,” said a senior MTC official.
Also, there is a drop in earnings per kilometre due to fall in passenger footfall and increase in fuel and maintenance costs, Vijayabaskar said.
This has forced MTC to take more loans and mortgage properties. Nine depots and 500 buses were mortgaged recently to gather funds.
Experts and unions attribute this to inadequate financial support from the state government. “Transport corporations are given a step-motherly treatment. When the government absorbed the Rs 22,800 crore debt of Tangedco, why is it not ready to help transport corporations,” asked K Anbalagan from SVS-APP transport workers’ union.
There is no clarity of whether the government has waived off MTC’s loans. Total outstanding loan value increased by 333% in the four years, according to official data. From Rs 80 crore in 2013, it stood at Rs 347 crore in 2017.
Besides, diesel subsidy to MTC was cut for a few months and the corporation was allowed to generate it by other ways and means.
Rubbing salt to injuries, absenteeism among workers is high. On an average, 200 buses remain idle due to non-availability of staff. Amid this, union office-bearers are given light duties or desk jobs.
Alongside salary, pending retirement benefits and accident claims are other components which add to MTC’s financial burden. A total of 180 employees, who retired last year, are yet to receive provident funds worth Rs 392 crore.
“The amount spent towards salaries is increasing exponentially. Salaries of 21,000 employees contribute to 52% of the operational cost,” said a senior MTC official.
Also, there is a drop in earnings per kilometre due to fall in passenger footfall and increase in fuel and maintenance costs, Vijayabaskar said.
This has forced MTC to take more loans and mortgage properties. Nine depots and 500 buses were mortgaged recently to gather funds.
Experts and unions attribute this to inadequate financial support from the state government. “Transport corporations are given a step-motherly treatment. When the government absorbed the Rs 22,800 crore debt of Tangedco, why is it not ready to help transport corporations,” asked K Anbalagan from SVS-APP transport workers’ union.
There is no clarity of whether the government has waived off MTC’s loans. Total outstanding loan value increased by 333% in the four years, according to official data. From Rs 80 crore in 2013, it stood at Rs 347 crore in 2017.
Besides, diesel subsidy to MTC was cut for a few months and the corporation was allowed to generate it by other ways and means.
Rubbing salt to injuries, absenteeism among workers is high. On an average, 200 buses remain idle due to non-availability of staff. Amid this, union office-bearers are given light duties or desk jobs.
Alongside salary, pending retirement benefits and accident claims are other components which add to MTC’s financial burden. A total of 180 employees, who retired last year, are yet to receive provident funds worth Rs 392 crore.
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