TN to clear Rs 960 cr pension dues of STC

After the trade unions served strike notice over demands, including non-commencement of talks for the 14th wage settlement agreement and non-payment of terminal benefits, a tripartite meeting was held between their representatives, Transport Corporation officials and Labour Department officials recently.

Sources said that the Transport officials agreed to pay the retirement benefits due to the workers who retried between April and December 2019, and promised to issue a government order. An Transport Corporation official said the order to pay the dues running up to Rs 962 crore would be issued in the next few days.

“About 5,000 retired employees till December 2019 would get their retirement benefits. Subsequently, we would pay the rest of the retired employees,” the official said, adding that talks for the wage settlement agreement would commence soon.

According to trade union sources, more than 7,000 retired employees of the eight State Transport Undertakings are awaiting settlement of terminal benefits since April 2019. “The non-payment of retirement benefits has remained an issue in the STU since 2013. The dues of retired employees were being paid only after protests by unions from time to time. Due to financial constraints, the management diverted the EPFO funds for its daily operation instead of crediting to the individual accounts of the workers,” the unions alleged.