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Taxi, rickshaw trade pays for alienating middle class

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The penchant for threatening strikes — especially among a section of the rickshaw unions in the city — has come back to haunt rickshaw drivers, as they see another May pass by without the promised annual fare hike coming their way. The PMA Hakeem Committee, which laid down the formula on which rickshaw and taxi fares are calculated, had recommended that the fares should be hiked on an annual basis every May. Of course, this hike would have to be justified by a complex calculation of factors, like Compress Natural Gas (CNG) prices, the cost of living index and maintenance charges incurred by rickshaw and taxi drivers.

The last fare hike was in October 2012. May 2014 has passed despite rickshaw unions sending several reminder letters to the state transport department to call a meeting of all stake-holders to pave the way for a fare hike.

A union functionary, speaking to dna, minced no words in blaming the constant strike threats by some unions as the reason why no political party was willing to hear their plea for a fare hike.
"The middle-class in Mumbai has been alienated by the rickshaw and taxi trade thanks to this constant threat of strikes. The rest of the alienation is cemented because of fare refusals and general rude behaviour by a small section of drivers. The result is that with the middle class no longer sympathetic to the rickshaw and taxi trade, no political party is willing to forward our demands for a hike," said a senior union functionary.

This is despite there being some favourable factors — when judged by the PMA Hakeem Committee formula — for a fare hike, according to union leaders. "Since October 2012 and now, the price of CNG, one of the main ingredients of the Hakeem Committee formula, has increased from Rs33.05 to Rs38.95, a rise of Rs5.90. This itself justifies a hike. Moreover, the cost of living, the insurance we pay for our vehicles and the cost of maintenance of our vehicles have increased," said a union leader.

The general consensus among unions in the city is that for rickshaws, the flag-down rate should be at least Rs17, which is Rs2 more than the current flag down rate of Rs15.
Taxi unions, on their part, are looking at a fare hike of Rs6, taking the flag down rate to Rs25 from the current Rs19.

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