The financial crisis unfolding in the Kerala State Road Transport Corporation (KSRTC) has hit salary distribution of employees.
Despite revenue of ₹58 crore in March, highest since the outbreak of COVID-19, the salary for the month has not been credited to the accounts of employees.
The delay in distribution of salary and the announcement of Transport Minister Antony Raju that the utility may have to lay off a section of employees as an immediate step to wriggle out of the crisis have strained the equation between the Minister and employees’ unions.
Pradeep Sreedhar, president, Kerala State Transport Employees Union, said the rise in fuel prices had increased the daily spending of the KSRTC. But this had neither affected the day-to-day operations nor necessitated holding back the salary of employees.
“If the Minister is unable to bring the corporation into the growth path harnessing its resources, he should step down, instead of asking the employees to go home,” said Mr. Sreedhar.
The KSRTC had lost around 2,885 buses fit for operations due to the mishandling of affairs, while it could procure only 101 buses in the past six years. The newly bought buses had been allotted to the KSRTC-SWIFT, a legally independent company, for operating long-distance buses of the KSRTC for 10 years, said Thampanoor Ravi, president, Transport Democratic Federation.
While employees were denied their salary or being retrenched, backdoor appointments of hundreds of contract labourers owing allegiance to the ruling party were being made, he said.
The idea of introducing the Madhya Pradesh model scheme to save money by offering employees leave with half salary and announcement of lay off have provoked the unions.
According to officials, the KSRTC had been finding it difficult to meet daily expenses, as it required around ₹80 crore a month for paying salary and pension and meeting the rising fuel charges.
