Bengaluru: Employees from the four Road Transport Corporations (RTCs) in Karnataka staged a protest at Freedom Park on Thursday, pressing for the payment of long-overdue arrears and other financial demands. The protest was organised by the Joint Action Committee of the Trade Unions of Karnataka State Road Transport Corporations, which represents six staff unions.

Key Demands and Arrears Breakdown

The protesting unions submitted a memorandum to Chief Minister Siddaramaiah, outlining a range of financial dues that have accumulated over the years. According to the Joint Action Committee, the four RTCs in question—Karnataka State Road Transport Corporation (KSRTC), Bangalore Metropolitan Transport Corporation (BMTC), North Western Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC)—are collectively facing a financial crisis.

The committee has claimed that the RTCs owe:

  •  ₹325 crore towards dearness allowance and leave encashment.
  • ₹365 crore in subsidy and leave encashment for retired employees.
  •  ₹2,452 crore towards the provident fund.
  •  ₹1,785 crore in salary arrears for 38 months, covering the period from January 1, 2020, to February 28, 2023.

Suppliers, Fuel Payments, and Legal Obligations

In addition to the payments owed to employees, the RTCs also face significant outstanding payments to suppliers and fuel providers. Specifically, they owe:

  • ₹495 crore to suppliers.
  •  ₹600 crore towards fuel payments.
  •  ₹157 crore for Motor Vehicles Compensation (MVC) award payments.

Reasons for Financial Crisis

The Joint Action Committee attributed the precarious financial state of the RTCs to the state government’s failure to periodically revise transport fares in line with the rising costs of services. This observation was supported by the findings of the MR Srinivas Murthy committee report, which had highlighted the need for timely fare revisions to sustain the financial health of the RTCs.

The unions also emphasised that the state government owes the RTCs ₹1,180 crore as reimbursement under the Shakti scheme for 2023-24, and an additional ₹166 crore for the months of April and May 2024.

Demands Presented to the Government

The Joint Action Committee has urged the Karnataka government to clear the outstanding dues amounting to ₹4,565 crore, including the following specific requests:

  •  Reimbursement of ₹1,346 crore under the Shakti scheme.
  •  Payment of salary arrears for 38 months.
  •  Clearing of other dues amounting to ₹998 crore.

The unions also demanded the establishment of a special committee to address the issue of fare revisions, which they argue is essential for preventing future financial crises in the RTCs.

Strike Threat and Government Response

The protest comes with a clear warning: if the Karnataka government fails to address these demands by September 26, the unions plan to launch an indefinite strike starting on September 27. Such a strike could significantly disrupt public transport services across the state, affecting daily commuters, particularly in major cities like Bengaluru.

The government is yet to respond to the demands formally, but the looming deadline and the scale of the arrears owed have brought the situation to a critical juncture. If the demands are not met, the strike could further complicate the financial troubles of the RTCs, which are already struggling with cash flow issues.

Fare Revision and Financial Sustainability

One of the most pressing issues highlighted during the protest is the need for regular fare revisions. According to the protesting unions, the failure to revise fares periodically has led to a widening gap between the operational costs and revenue generated by the RTCs.

The MR Srinivas Murthy committee report recommended that fares be reassessed regularly to keep pace with the increasing costs of fuel, maintenance, and employee wages. However, this recommendation has not been implemented, leaving the RTCs financially vulnerable.

The unions argue that without immediate intervention, including fare adjustments, the RTCs will continue to struggle with cash flow problems, making it difficult to pay employees and meet other financial obligations.

The Impact of the Shakti Scheme

The Shakti scheme, which offers free bus travel to women in Karnataka, has added another layer of financial pressure on the RTCs. While the initiative is popular and widely used, the reimbursement for the free travel has not been fully provided by the state government.

The Joint Action Committee claims that the RTCs are still awaiting ₹1,180 crore for the 2023-24 period under the Shakti scheme, with an additional ₹166 crore outstanding for April and May 2024. This delay in reimbursement has further strained the financial resources of the transport corporations.

Conclusion

The protest by Karnataka RTC employees highlights the deep-rooted financial challenges facing the state’s public transport sector. With over ₹4,500 crore in arrears and outstanding payments, the unions have made it clear that immediate action is needed to prevent a complete breakdown of the transport services. The impending strike, scheduled for September 27, adds urgency to the situation, as a prolonged disruption of bus services could impact millions of daily commuters across the state.

If the government does not take swift measures to address the demands, including clearing the arrears and instituting fare revisions, the financial woes of the RTCs could worsen, leading to further protests and strikes in the future.