BMTC Case Study

R. RITU CHOPRA Section C 11YACMA117

Bangalore Metropolitan Transport Corporation Introduction

BMTC began with a legacy of loss. Back in 1997, it was formed after the bifurcation of Karnataka State Road Transportation Corporation (KSRTC) and gained an equity capital of Rs 64.59 crore (US $16 million), and an accumulated loss of Rs 72.68 crore (US $18 million). But the very next year, it was able to make a profit and has continued to do so ever since, resulting in an accumulated net worth of Rs 683.31 crore (US $170 million). Consistent profit on traffic revenue started from the year 2003-04. BMTCs origin goes back to 1940 when it was created as a private company called Bangalore Transport Company (BTC) with a fleet of just 98 buses serving the city. In 1956, the Government of Mysore took it over and renamed it the Bangalore Transportation Service (BTS), which extended its service to a 16 km radius around the city. BTS was recognized as an independent unit under KSRTC in 1993 and in 1997 got separated from KSRTC and was re-born as BMTC. Part of the success of BMTC lies in its ability to offer innovative and tailor-made branded services to its customers, creating brand loyalty and a sense of belonging among its patrons. Pushpak was the beginning of the initiative and at present BMTC boasts of services like Metro, Grid, Passes Special, Ladies Special, Hospital Special and Mall Special. To cater to different economic sections of society it has a variety of rolling stock such as Ordinary, Pushpak and the world-class Vajra (Volvo) services. This initiative was aimed at reducing personalized mode of transport and encouraging public transport, contributing directly to traffic and air quality improvement in the city. The introduction of more comfortable and better designed passenger/environment friendly buses has received wholehearted support and encouragement from the public, helped BMTC grow faster than any other city public transport in India and made it profitable too. BMTC has one of the most successful commuter pass systems, with a patronage of more than half a million. The modest pricing and the services made available under it is the central feature of its stupendous success. Seven additional benefits including automatic travel insurance and medical reimbursements are offered to pass users as a bonus under an umbrella called rainbow benefits.

BMTC not only strives to serve the citizens of Bangalore by providing affordable, efficient and safe public transport but also takes care of its employees who have powered the corporations unprecedented success story. BMTC staff are provided with facilities like medical treatment, housing, loans for the education of their children, a life insurance scheme of Rs 3 lakh (US$ 7500) - the only government sector undertaking to do so in India. It encourages gender equality by reserving 33 per cent of its jobs for women. In order to fulfill its mission - providing efficient, economic, safe, reliable and punctual services to the commuters of city and suburban areas of Bangalore, BMTC has plans for large scale expansion requiring a capital of Rs 3000 crore (US $7.5 billion) for running 1000 buses in its circuit. With the opening of the new international airport and a booming economy creating new jobs and more Bangaloreans by the day, BMTCs expansion is fundamental to the citys vast mobility needs. The proposed growth includes improved connectivity of routes, a huge increase in the number of buses operating and easier access to information for the commuter. With a history of efficiency, growth and service, BMTC is poised to be an important contributor to Bangalores success as an international city.

Records

BMTC introduces multi-axle Volvo buses for local transport for the first time in the country. These 14.5 meter long buses can accommodate 55 percent more passengers compared to normal Volvo buses.[12]

BMTC was the first in the country to introduce intra-city Volvo buses. Earlier, they were well received on the IT sector routes but are now patronized on all routes in the city.

It has the record for making profits consistently for years. It has the youngest fleet of buses in the country due to which the KMPL is also higher compared to other undertakings.

BMTC is one of the few undertakings to introduce pneumatic doors in India even in its fleet of ordinary buses to provide safety for passengers. Currently, buses in Chennai and Hyderabad also have adopted this system.

Operates the longest city bus route in India: Route no. 600 (circular bus route) which starts from Banashankari and covers 117 kilometers (73 mi) round trip to reach Banashankari, covering BTM layout 100 feet road, Hosur Road, NH-207 (Attibelle to Varthur), ITPL, K. R. Pura, Hebbal, NH-4 (Tumkur Road), SH-17 (Mysore Road), Banashankari Ring Road. It traverses an entire circle covering these places to reach Banashankari.

BANGALORE: The state government has decided to sack over 3,000 trainee drivers for participating in Karnataka State Road Transport Corporation (KSRTC) and Bangalore Metropolitan Transport Corporation (BMTC) strike resulting crippling of public transport system.

Even as strike continued on second day on Friday, the government served show-cause notices to 3,000 trainee drivers asking them to report to duty within 24-hours, failing gate pass would be given. Drivers and conductors are off the duty since Thursday demanding wage hike. "Participation in strike by trainees is in violation of service rules. We will initiate the process to recruit an equal number of drivers soon after formalities are completed," R Ashoka, deputy chief minister in charge transport department told reporters.

He said the government would not be able to meet the wage hike demand given as bus fares have to be increased manifold. "If the demand on wage hike is fulfilled, bus fares will have to be hiked at 14.43%. It will be a burden on the common man at this time of crisis. Government is not ready for this," Ashoka maintained. Barring wage hike, government is ready to fulfil all the demands.

He said the additional burden on the state exchequer because of the 10% hike in basic pay of the employees of the four state-run transport corporations, including Karnataka State Road Transport Corporation and Bangalore Metropolitan Transport Corporation, effective last month was Rs 2,287.20 crore over the four-year period.

The transport department has estimated that it would cost them Rs 325.49 crore a year due to Rs 5 (Rs 6.13 in Bangalore adding taxes) hike in diesel prices. Ashoka indicated that ticket fares would not be raised because of diesel price hike.

When asked why the government had not signed agreement as per the unions demand, Ashoka said such a demand was existing since 16 years and was not a new one. "Political parties in power earlier to this government failed to address this issue. This government is working on find permanent solution," he said.

Replying to a query on allegations of large scale corruption and harassment at depot manager level, the transport minister said five each depot managers and DCs have been shunted out in last three weeks. "Government is ready show doors to others following complaints," he said.

Ruling out political hand in the strike, the deputy chief minister said government never anticipated strike as they are given best of the wages and other facilities in south India. "Drivers and conductors have betrayed people and government," he said. A similar strike was called for in April by unions to protest against unilateral wage hike and demands for a proper wage revision after discussion with the unions. The strike was called off at the last minute when the management agreed to the demands of the unions and promised that in future they would be consulted. According to the union members, the management has breached their confidence and broken their promise. They have tasted power and do not want to let it go, but we will take it from their unwilling hands, said HV Ananthasubba Rao, convenor of the joint committee.However, top officials of the BMTC maintain that the claims made by the unions are false and there is no chance of a negotiation at all.

During the meetings in April, we had promised to discuss wage revision with them. First they asked for a few days time and we gave them time to study the proposal. However, after that deadline, they asked for another weeks time. Since wage revision was already delayed and employees were already discouraged, we decided to go for 10% wage revision, said KR Srinivas, MD, BMTC. Manjunath Prasad, MD, KSRTC said that this is the highest revision that could be offered.

Employee Restive:
A group of conductors and drivers attending the second shift at the shivajinagar bus station said they all will not come to work on Thursday (13th September). We have been working as robots for the corporations benefit, but what has the authorities done to look at our needs? Our salaries are low. A hike happens once in every four years, and the percentage is very low, said a woman conductor. We are demanding hikes based on experience and service record, Ananth Subba Rao, president, KSRTC Staff and Workers Federation, said. The KSRTC and BMTC United Employees union, Akhanda Karnataka state Road Transport Workers Union, INTUC and Karnataka Rajya Raste Sarige Naukarara Mahamandala announced their members will take part. The corporation has hiked the salaries by 10% and 23% for KSRTC and BMTC employees respectively but to no avail, this hike is barely sufficient to take care of basic necessity of a family of 4.

Employees Hitches:
Were left at Gods Mercy (A Day In The Life Of A Conductor) A conductor whos with the corporation since fifteen years says, I start working at 6am every day and finish my trips by 2: 30pm. But office work of cash clearance of ticket money goes on till 4pm. If a conductor for next trip is absent, a conductor from first shift is asked to continue for the second shift which goes on till 10pm. Were not paid for over time. He continues saying, we end up sleeping in the bus and its mandatory. Inspectors come to see

if we are taking care of the bus. Buses have no facility to even keep our belongings. When we go to distant places like Avalahalli, Hosakerehalli, or any village- turned-layout, there are no restaurants and no toilets either we are at Gods mercy. Due to this he hardly finds time to spend with his family. I Hardly Get To See My Family (A Day In The Life Of A Driver) A driver whos been with the corporation since 10years claims that the salary given by the management is so insufficient that he runs out of money by the time the first half of the month ends. He has two children, wife and an unmarried sister to take care of, but hardly gets to see them during the month. Most of the time, he is either on a night shift or is sleeping in the bus on the outskirts of the city only to start working in general shift from 7 in the morning till 10pm. He earns a salary of 16,000 but takes home only 12,000 the reason being, fine charged for reaching late to the depot which means, his monthly incentives are gone.

Reasons:
The first and foremost reason strike happened was, the BMTC corporation was not generous about hiking the wage of the employees though it is generating good profits. Second, the percentage of the hike is very low. Employees disheartened with the managements decision Performance not taken into consideration Hard work is not being noticed Over time not paid Therefore, the union called the strike.

Suggestions:

The corporation should create good employee- employer relationship to prevent such problems in future.

It should look at problems from the employees point of view. Performance, hard work and overtime should be considered while hiking the salaries. Performance appraisal system should be introduced in the system. Compensations/ rewards /benefits should be given to the employees for good performance and negative rewards be given to those with high accident rates.

Drivers and conductors go through a lot of stress during the working hours. Therefore, management should appoint counsellors to distress them. Because stress is one of the reasons for undesirable behaviour.

They should be sent on family trips once in two years. Employees should be motivated and a positive attitude should be generated within them so that they do not showcase undesirable behaviour with the commuters.

Every BMTC bus should have suggestion box so that the commuters will be able to suggest them on how to improve and share their experience with them. This will provide them better feedback from the commuters.

The corporation is fairly making good profits therefore the percentage hike in salary should be satisfying. The corporation shouldnt increase the price of tickets when there is hike in petrol price because buses run on diesel not petrol.

The above mentioned were the reasons for the strike and the mentioned suggestions may prevent such happenings in the future if taken seriously.

Sources:

http://www.google.co.in/#hl=en&sugexp=les%3B&gs_nf=1&pq=history%20of%20bmtc&cp= 13&gs_id=1w&xhr=t&q=accident%20rate%20of%20BMTC&pf=p&sclient=psyab&oq=accident+rate+of+BMTC&gs_l=&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.&fp=449d6a268 234a6e5&biw=1311&bih=703

http://www.dnaindia.com/bangalore/report_bmtc-strike-wait-may-be-indefinite-thistime_1740314

Times Of India 13th September 2012 Times Of India 14th September 2012 Times Of India 15th September 2012