Crisis Hits Public Transport: Companies Struggle as Costs Soar

The public transport sector in Mauritius is facing difficult times, as companies struggle to meet increased wage costs.

Since the beginning of the year, companies have been grappling with a salary hike ranging from Rs 1,500 to Rs 2,000 per employee.

While some companies were able to meet this commitment for January and February, they are expected to face difficulties starting from March.

This is because they are drawing funds from company resources, leading to significant financial losses.

The National Transport Company (CNT) has spent around Rs 8 million since January to cover the salary increase for its roughly 2,500 employees.

An operator mentioned that any wage hike leads to additional expenses such as overtime, year-end bonuses, attendance bonuses, and the impact of fuel prices.

Several transport companies, including Mauritian Bus Transport (MBT) Ltd, Triolet Bus Service (TBS) Ltd, United Bus Service (UBS) Ltd, and CNT, have been alerting the Transport Ministry about this issue since December 2023.

Union representatives are mobilising to raise awareness about the potential non-payment of March salaries.

A meeting was reportedly held at the Transport Ministry on February 19, but unions are still awaiting a response from the authorities.

Swaleh Ramjane, the general manager of UBS, highlighted the significant impact of the Cost of Price Index (CPI) on bus operators and stated that they have requested support from the government to overcome financial difficulties.

The Daily Challenge reached out to the Transport and Light Rail Ministry for a statement but did not receive a response.

The transport sector in Mauritius is currently in dire need of financial assistance to navigate through these challenging times.

Source: Defi Media