Public Transport Unions Reject Wage Increase of 15%

As for the union platform, it rejected the proposal and demanded a wage increase of 30%. No consensus has been reached, negotiations will resume next Monday.

A first meeting was held Wednesday morning between unions, the Ministry of Labour and representatives of the National Transport Corporation (NTC). During the tripartite meeting, the original proposal of 45% by the union was rejected and the NTC announced that its 'capacity to pay' was 8%. Thereafter, the meeting was adjourned to resume in the afternoon, time for the NTC to come up with a new proposal. The union platform was therefore announced that it would not compromise on its demand and had even used the threat to call another strike in the transport sector.

The NTC, to date, unpaid Rs 409 million representing refund arrears to the government for a loan amounting to Rs 154 million.

But considering that the NTC did not pay its debts regularly, the amount owed to the government has increased over the years, with interest of around Rs 255 million, amounting to Rs 409 million at June 20 last.

The NTC calls to government for help

With debts to the government amounting to Rs 409 million, the National Transport Corporation (NTC) is often forced to knock on the door of the creditor in order to stay afloat. Thus, according to a document filed in the National Assembly on Tuesday by the Minister of Public Infrastructure Anil Bachoo in 2009, the NTC was, once again, turn to the government to obtain a loan of Rs 40 M. This to improve its financial situation by increasing its liquidity. In this case, the NTC has honored its commitments under the terms of the contract. The last two payments will be made in June 2014 and June 2015. Thus, the value date, the debts accumulated by the NTC vis-à-vis the government amounted to Rs 425 M. If we add other debts, the NTC ends up with a slate of Rs 759 M.

This explains the writings of Robine Soonarane in a recent report, conceding that the NTC can not borrow money from the local financial market to renew its fleet of buses. In the same report, the Director General of the NTC explains the urgency for the acquisition of 370 new buses at a cost of Rs 1.3 billion to replace 402 vehicles in need of major repairs. Thus, the option that says consider is to appeal to the government to help the speedy implementation of the restructuring plan of the company.

According Robine Soonarane invest in the renewal of the bus fleet instead of repair, would enable the company to make monthly savings of Rs 6 million in fuel bills and Rs 13 million for the purchase spare parts and wages.

But the issue remains unresolved today with the decision of the union of the transport platform to reject the proposal made Wednesday by the Minister Shakeel Mohamed for a wage increase of 15% over three years as follows industry: 11% for the first year and 2% for the second and third years. "The leadership of the NTC had initially proposed a wage increase of 8%, but after consultation with the authorities, a proposal was made 15%," said Shakeel Mohamed after the tripartite meeting. The latter insisted that any wage increase should be reasonable because it affects the price of bus tickets.

"We proposed this increase so that no consumer should not be penalized," said the Minister of Labour and Industrial Relations.

The union, however, the platform mean it that way. For her, the salary increase is 30%, distributed as follows: 15% in the first year and 7.5% in the second and third years.

Ashok Subron, the negotiator of the Bus Industry Union of Workers, has insisted that the absence of a mutual agreement on Monday, following a meeting with the National Remuneration Board, a decision could be taken at a special meeting to a strike in the transport sector.