DATA STORY | As BEST workers accept 10-step pay hike, here's a look at its books

Mumbaikars may soon find relief as the BEST workers have called off the strike and accepted the '10-step' pay hike, granted as an interim measure by the civic transport Undertaking's management.

The move by the Brihanmumbai Electric Supply and Transport (BEST) Undertaking union comes after the Bombay High Court directed the union to take a final call on the strike that ended on January 16.

As BEST has agreed to implement the "10-step increment" for its employees with effect from January this year, let's take a look at the Undertaking's state of finance.

Read — BEST union to withdraw stir, accepts 10-step pay hike formula

BEST transport, which has been reeling under pressure over rising debt, is estimated to report a deficit of Rs 844 crore in FY20, as per the revised estimates on the BEST Undertaking website.

BEST's overall deficit is estimated to be Rs 720 crore as per the revised budget estimate for FY20. The deficit is solely due to the debt and expenses under its transport arm as its other arm, which deals with electric supply, is estimated to report a surplus of Rs 124 crore for the next fiscal.

Source: BEST Undertaking website.

The move to implement the "10-step increment" for its employees may further swell the losses of BEST Undertaking.

As per the BEST workers' union and BMC's previous submissions in court, a 'one-step' increase in pay for a BEST worker amounts to around Rs 330 per month.

Rough estimates suggest that if BEST implements 'one-step' increase in pay for 32,000 workers, it would incur a loss of Rs 12.67 crore annually. The undertaking is said to have incurred a loss of over Rs 20 crore due to the workers' strike.

The cash-strapped organisation is said to have told a panel submitting a status report on the strike that meeting the striking workers' demand would only add to their existing financial mess.

BEST said it may also have to hike fares by about Rs 4 to make up for the losses and the Brihanmumbai Municipal Corporation (BMC) may have to source additional revenue from its reserves if their budgets are merged, according to a report by The Hindu.

Also Read — Shiv Sena chief Uddhav Thackeray promises merger of BEST, BMC buses

The BEST workers were on strike since January 8 to January 16 over various demands that include a pay hike, a revision in the pay scale of junior level employees and the merger of BEST's budget with that of the BMC.

Shiv Sena chief Uddhav Thackeray has said his party will fulfill its promise to merge the budget of the transport undertaking with that of the BMC. The party has a majority in the BMC and is a key ally in the BJP-led coalition that heads the Maharashtra government.

BEST may, however, will have to deal with the issue of falling ridership to reduce its losses. The buses' patronage has reduced to 25 lakh from 45 lakh passengers a day in the last six years, according to a report by The Wire.

The BEST union and its management agreed to have retired High Court justice F I Rebello as the mediator. Rebello will look into these issues over the next three months and bring about conciliation.

The BEST has a fleet of over 3,200 buses providing services across the metropolis including Navi Mumbai, and the neighbouring Thane district.