ON December 18, 2024, the All India Road Transport Workers’ Federation (AIRTWF) submitted a memorandum to the Minister for Road Transport and Highways, Government of India, New Delhi to demand resolution of the issues of road transport sector and the workers.

It is important to know that the transport sector is a critical lifeline for the economy. Contributing 4.1 per cent to the GDP, it is the second-largest employment generator after agriculture. A society without a functional transport system is almost unimaginable. Despite its significance, this vital sector is currently facing a severe financial crisis, primarily due to the steep rise in diesel prices, insurance premiums, and toll charges. Additionally, the Motor Vehicles (Amendment) Act, 2019, has further exacerbated the situation.

In India, around 90 per cent of commercial vehicle owners are self-employed individuals who operate as both the owner and driver. The costs of operating these vehicles have surged, while revenue has remained stagnant or declined, leaving many drivers struggling to survive. In some cases, they are unable to meet their basic operational expenses.

Further, the rapid growth of app-based platforms like Uber, Ola, Rapido, and Porter has added another layer of complexity. While the drivers are responsible for covering the costs of the vehicle, fuel, maintenance, and insurance, the bulk of their earnings are siphoned off by the companies in the form of commissions. These companies, while profiting significantly, do not take on the responsibility of the drivers. Instead, they label the drivers as "partners," effectively distancing themselves from the financial hardships faced by these workers.

The situation has become untenable for many, as the drivers bear the full brunt of increased costs while receiving minimal support or compensation. Without significant intervention, the transport sector, and the livelihood of those who depend on it, may continue to deteriorate.

The e-rickshaw segment has been growing rapidly and has become an essential mode of transportation for the public. Similarly, the auto rickshaw segment continues to serve as a vital feeder service, meeting the transportation needs of people. However, drivers in both these segments are facing numerous challenges and harassment. This situation urgently needs to be addressed, and concerted efforts are required to revive and strengthen the sector.

Road transport workers, including those driving e-rickshaws, auto rickshaws, taxis, trucks, and private buses, are on the roads round-the-clock, braving all weather conditions, with their lives always at risk. The conditions of these workers are deplorable. Around 90 per cent of road transport workers in these categories remain unorganised, without access to statutory protections such as an 8-hour workday, weekly rest, provident fund (PF), or employee state insurance (ESI). Besides, safety measures and wayside amenities are grossly neglected, and the profession of driving is often treated with disdain, leading to the ill-treatment of drivers.

As a result of these poor conditions, there is a significant shortage of commercial drivers, with an alarming deficit of about 30 per cent. This shortage is a critical issue that demands immediate action and the formulation of suitable policy measures to bring the sector back on track. Additionally, the practice of illegal and excessive penalties, along with harassment by police and transport department officials, needs to be streamlined and ultimately ended.

The State Road Transport Corporations (STUs) have historically played a crucial role in the development of their respective states. They have provided employment to large segments of the population, especially to youth from SC, ST, OBC communities, and women, while also implementing reservation policies. In addition, STUs have contributed significantly to society and the economy by maintaining low accident rates, ensuring fuel efficiency, minimising pollution, offering affordable fares, and connecting remote villages and hilly regions to the mainstream.

However, the financial health of many STUs has deteriorated, and several have ceased to exist. Those that remain are in a severe financial crisis, unable to replace or upgrade their aging bus fleets. It is time to rethink the future of STUs and take decisive steps to strengthen and expand them. Appropriate policy decisions must be made in this direction.

Further, the steep increase in penalties under the Motor Vehicles (Amendment) Act, 2019, has placed a heavy burden on self-employed drivers, including auto rickshaw drivers, small goods carriers, and petty vehicle owners. These individuals are being penalised for minor, often unintentional infractions, with many forced to pay exorbitant fines each month. The situation has worsened with the rise of app-based platforms like Uber, Ola, and Rapido, which have drastically reduced the earnings of traditional auto rickshaw drivers, leaving them struggling to make ends meet. In this context, the enhanced penalties have only added to their financial distress. It is urged that the government reconsider these heightened fines and revert to the penalty structure under the Motor Vehicles Act, 1989. The late Professor Dinesh Mohan from IIT Delhi, a supporter of many provisions in the MV Amendment Act, 2019, also criticised the excessive penalties. He had argued that penalties should not exceed the earnings of offenders, citing examples from various countries. Additionally, the recent statement acknowledging that the increase in penalties has not led to a reduction in accidents underlines the fact that harsh fines do not effectively address road safety issues. Auto rickshaws and e-rickshaws have become a vital mode of transport in cities, and with rising diesel prices, the additional financial strain on these sectors will inevitably be passed on to the public. Given the challenges faced by millions of unorganised road transport workers, it is essential that the enhanced penalties be withdrawn and the penalty system under the MV Act, 1989, be reinstated.

The memorandum included demands like reduction in diesel prices, insurance premiums, and toll charges; making vehicle scrapping optional and test vehicles under the transport department with subsidies; amend the MV Amendment Act, 2019 to protect small vehicle owners; provide loans through nationalised financial institutions to relieve small owners from private finance exploitation; enact a Social Security Act for unorganised road transport workers, including self-employed individuals; amend PF and ESI Acts to apply to all unorganised road transport workers without minimum worker requirements; enforce duty hours and weekly rest provisions under the Motor Transport Workers Act; restore the double driver rule for National Permit vehicles; provide wayside amenities with essential facilities on national highways; withdraw Sections 106(1) and (2) of BNS 2023 through appropriate amendments; develop government-operated alternatives to app-based platforms like Uber, Ola, and Rapido to protect drivers and consumers while generating revenue for the government; implement segregation on national highways to reduce accidents; strengthen and expand State Transport Undertakings (STUs); restore capital contribution to STUs as per the Road Transport Corporations Act, 1950; convert outstanding STU debts into government equity; and allow STUs to manage electric bus procurement, maintenance, and operations, with subsidies and viability gap funding.

The AIRTWF said that the above suggestions should not be viewed merely as proposals for the benefit of the transport sector. They are in the broader interests of the nation and its people.