Karnataka Transport Strike in Doubt as Govt Agrees to Pay KSRTC, BMTC Employees 26 Months’ Salary Arrears

The proposed Karnataka transport strike from February 19 hangs in the balance after the state government approved the release of 26 months of pending salary arrears amounting to ₹1,271.92 crore for employees of state-run transport corporations. The move comes after weeks of pressure from unions, which had demanded payment of 38 months' dues and warned of a statewide bus strike if their demands were not addressed. Alongside the arrears clearance, the government has also initiated discussions on a fresh salary revision, though unions are yet to officially confirm whether the strike will be called off.

The decision applies to staff of the 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).

Employees Had Demanded 38 Months' Arrears

Transport employees had sought clearance of 38 months of wage arrears and had threatened to launch a strike from Thursday, February 19, if the issue was not resolved.

According to the government order issued on February 18, approval has been granted to release 26 months of arrears totalling ₹1,271.92 crore.

Fourteen months of arrears from January 1, 2022, to February 28, 2023, will be cleared based on the recommendation of a one-member committee headed by retired IAS officer Srinivasa Murthy. A special grant of ₹718.93 crore has been sanctioned for this period.

In addition, 12 months of arrears from January 1, 2021, to December 31, 2021, will be released with a special grant of ₹552.99 crore.

Though the decision does not cover the full 38 months demanded by unions, it clears a significant portion of the pending dues.

Salary Revision Talks From April 1, 2025

The government has also directed officials to begin discussions with labour unions on the percentage-based pay revision to be implemented from April 1, 2025.

Earlier, the basic pay of employees across the four transport corporations had been increased by 15 per cent with effect from March 1, 2023. However, unions continued to press for further revision and full settlement of arrears.

Officials said the delay in clearing arrears was due to the absence of specific budget allocation at the time of the 2023 pay revision and the time taken for the one-member committee to examine the arrears demand.

Financial Strain Cited By Government

The government cited financial stress within the transport corporations as the reason for phased payment.

Officials pointed out that of the daily revenue earned by the corporations, 34.50 per cent goes towards diesel expenses and 46.37 per cent towards staff costs, taking total expenditure under these two heads to 80.87 per cent.

Between 2019 and 2023, liabilities had mounted to ₹4,900 crore. To clear pending provident fund and diesel dues, the government permitted the corporations to raise ₹2,000 crore in bank loans, with the state bearing repayment of both principal and interest.

The government also waived motor vehicle tax amounting to ₹1,219.23 crore over the past two years and released ₹224 crore towards revised pension benefits of retired employees despite no specific budget provision.

In the last two-and-a-half years, 7,800 new buses have been added at a cost of ₹8,351 crore and 10,000 new recruitments have been made to strengthen operations and improve passenger services.

With arrears clearance announced and salary revision talks initiated, union leaders are expected to review the order before taking a final call on the proposed strike.

As of now, no official statement has been issued confirming withdrawal of the strike. The unions' response will determine whether bus services across Karnataka operate normally from February 19.