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Rediff.com  » Business » Strike on, but truckers' unions split

Strike on, but truckers' unions split

Source: PTI
April 23, 2003 11:54 IST
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The nationwide indefinite strike by truckers, demanding stable fuel prices and fewer levies, entered the tenth day on Wednesday amidst reports of a vertical split in the striking union.

 

The protest, called by the All India Motor Transport Congress, the largest truckers' union with 2.7 million vehicles in its fold, has seen prices of fruits and vegetables go up in some states and costing businesses Rs 2,000 crore (Rs 20 billion) a day.

 

The truckers body -- All India Confederation of Goods Vehicle Owners Association -- has dissociated itself from AIMTC, which comprises mostly transport companies that hire trucks and book cargo, and begun holding negotiations with the government on behalf of truck operators since Tuesday.

 

Of the three main demands of truckers, the government has already agreed to discipline the insurance companies on the third party insurance, while the demand for appropriation of toll tax between the truck operators and the good consignors too has been agreed in-principle.


The only bone of contention is the truckers' demand of restructuring the current level of duties and taxes on crude oil and diesel so as to contain the spiralling retail prices.


"The strike is continuing," AIMTC secretary general J M Saksena said while discounting reports of splinter groups calling off strike in Orissa and West Bengal.


"Few individuals might have withdrawn but that did not have any effect on the

strike," he said.


Saksena claimed that oil tankers, transporting petrol and diesel, have joined the 'chakka-jam' agitation in Tamil Nadu and Maharashtra, a move that could affect fuel supplies.


The ACOGOA officials said their main demands have been pushed to the backburner with AIMTC's instances of holding talks only with the ministers.


"We are interested in resolving the issue. If it can be resolved at the official level why should we not hold negotiations," he questioned, while indicating that the talks would be held later on Wednesday also and the end of the stalemate was in sight.


According to ACOGOA, the main issue for AIMTC was the value-added tax regime which would expose their true incomes to the income tax authorities.


Truckers, by virtue of being service providers, do not come under the purview of the new VAT regime which is to replace the varied sales tax.


The AIMTC, on the other hand, said it would not withdraw the stir on just an assurance by the Minister for Road Transport and Highways, B C Khanduri.


"We are open (to meeting him) but he should offer us something concrete," Saksena said.


The union's demands include putting an end to frequent hike in diesel prices, immunity from a planned value-added tax, repeal of an order to scrap 15-year-old trucks and fixing of minimum freight rates.


The AIMTC launched the strike on April 14 to back demands which include calls for a halt to frequent fuel price hikes, immunity from a planned value-added tax, an end to toll fees and minimum freight rates.

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