CCS funds: RTC, employee unions on collision course

Talk over granting of loan fails; Employees’ Union to launch fast on July 30

Leaders of the Employees’ Union of State Road Transport Corporation, both in Andhra Pradesh and Telangana , are on a collision course with the management over the issues related to Cooperative Credit Society (CCS) funds.

The CCS recovers 8 per cent of the basic salary of a member and the deposit thus formed is utilised to grant loans, both short-term and long-term, to the members for causes ranging from education, house construction and performing a marriage, besides implementation of welfare schemes for retired employees. Almost 95 per cent of the employees are Society members and the RTC recovers nearly Rs.50 -55 crore every month from the CCS contributions.

Delay in grant of loans in the last four months has peeved the Employees Union leaders. “In the past, loans would be granted in four to five days. But the employees are being denied the same for the last four months because the Corporation has diverted CCS funds to the tune of Rs. 230 crore to meet other expenses,” alleges APSRTC Employees Union deputy general secretary Y. V. Rao.

Fast on July 30

“This is the time when employees need money to pay their children’s fee in schools and colleges. Denial of loans is causing severe hardships. We have decided to launch an indefinite hunger strike on July 30,” says Mr. Rao.

Talk fails

A decision to this effect was taken after talks between the management representatives and the union leaders failed on Saturday.

The management sought a month’s time to replenish the funds to which the union leaders did not agree.

Mr. Rao will undertake the fast in Vijayawada on July 30 while in Telangana, his counterpart K. Raji Reddy will lead the protest. “If the management still remains indifferent, employees of both Andhra Pradesh and Telangana will collectively intensify the indefinite fast from August 2,” he warns.

Responding to the issue, R. Nagaraju, Executive Director of the Corporation in Vijayaawada zone, admits delay in releasing the loans and attributes it to the financial crunch leading to an “increasing gap between revenue earned and the expenditure.”