BEST cost-cutting: workers’ salaries not paid on time

The Brihanmumbai Electricity Supply and Transport (BEST) Undertaking is reeling under a tremendous financial burden, making it even unable to pay monthly salaries to its 42,000 employees on time. The BEST management has now proposed various cost cutting measures to curtail establishment costs due to the critical financial position of the undertaking. A notice of change was issued to the unions by the management on June 22. 

BEST, the second biggest public transport in the city, has incurred losses of Rs 2,148.04 crore for the financial year 2016-17. 

A document accessed by DNA from BEST management states that after adoption of several cost cutting measures, the Undertaking will save Rs 915 crore on an annual basis and Rs 581.57 crore for this year. This includes saving of Rs 378 crore towards fleet optimisation, Rs 75 crore towards rationalisation of fleet deployment, Rs 85 crores towards combination of duties and more. 

The proposed cost cutting measures include discontinuation of allowances to all employees like monthly medical allowance of Rs 500, annual finance of Rs 1,000 for school books, allowances for field duty and hazardous working among others. So far, the undertaking has already implemented a few cost cutting measures.

A senior BEST management officer said, “If the unions do not agree, we will approach the Industrial Court.”

BEST finances

Loss incurred in fiscal year 2016-17
Rs 2,148.04 crore

Loans borrowed from BMC
Rs 593.56 crore

Loan availed over draft facility from nationalised banks
Rs 210.67 crore

Term loan
Rs 316.71 crore

Short term loan
Rs 741.50 crore