Kumari Palany & Co

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Superb plans by MTC in Chennai to cover up for the expenses of the salary hike for its employees?

Posted on: 08/Sep/2022 10:16:51 AM
Now, there is an additional expense of Rs 6.5 crores for MTC or Metropolitan Transport Corporation due to hike in the salaries of its employees and MTC has become cash strapped. It must be noted that MTC has decided to cover up this expense by boosting ticket sales. Following the 14th wage settlement and 3percent hike in DA, the expenditure of the salaries of the employees would increase by 10percent from the September month. This was stated by MTC.

An amount of Rs 3.5crores would be earned through advertisements on the MTC buses and Rs. 6.5 crores would be earned through the increase in the ticket revenue. This was according to the finance dept of MTC and this has been mentioned in the recent directive from MTC to the depot managers and regional managers etc.

At each MTC bus depot, the monthly ticket collection target has been fixed. Point is that MTC has directed the depot managers to ensure the drivers and conductors were informed to increase the collections. It was brought to light by an official data from MTC that 55percent of the transport undertakings earnings were spent on salaries. The reduction in the earnings could be because of several reasons like unscheduled leave of drivers/ conductors, trips cancellations and termination of services for want of employees etc.

It is learnt that per day patronage in MTC buses in Chennai was nearly 2 crores until the month of January in 2018. It came down below 75lakhs in 2021 and recently crossed 1 crores.

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