The decision followed talks in Thiruvananthapuram on Wednesday between Transport Minister C. P. John and representatives of transport workers’ organisations. The government will appoint a commission to examine operating costs and recommend a revised fare structure before final rates are fixed.
Union leaders said the minister had assured them that the new rates would take effect at the beginning of January. John confirmed that the government had accepted the case for a revision in principle, while making clear that the amount of any increase would be determined through the proposed review.
The principal demand is to raise the minimum auto-rickshaw fare from ₹30 to ₹50, an increase of ₹20, or approximately 67 per cent. Operators also want the charge for each additional kilometre raised to ₹20. Taxi unions have sought an increase in their minimum fare from ₹250 to ₹300.
None of those proposed figures has yet been approved as the new tariff. The commission’s recommendations will provide the basis for a government decision, leaving the precise cost to passengers unresolved despite the agreement on a January implementation target.
The strike had been scheduled to begin at midnight on Wednesday and run through Thursday. Its withdrawal removes the immediate threat of disruption to commuters relying on auto-rickshaws and taxis for daily travel, including journeys to workplaces, hospitals and transport terminals.
The joint action committee representing several transport unions had called the stoppage after earlier discussions failed to secure an agreement on fare revision. Organisations involved in the mobilisation included CITU, AITUC, HMS and KTUC. Union representatives agreed to suspend the action following the minister’s assurances.
Workers argue that the existing rates no longer reflect the cost of operating commercial vehicles. They have pointed to higher expenditure on fuel, insurance, maintenance and other essential services, saying that earnings have not kept pace with expenses faced by drivers and vehicle owners.
The existing fare structure dates from April 2022. John referred to that revision during Wednesday’s discussions, acknowledging the unions’ request for a fresh assessment. The proposed commission will consider the competing implications for drivers’ incomes and passenger charges before recommending changes.
The unions have cited the minimum fare charged in neighbouring Tamil Nadu to support their request for a higher starting rate. Their proposal would affect short journeys particularly sharply, while the additional kilometre charge would influence longer trips. The review will therefore need to distinguish between the initial charge, distance-based pricing and the separate tariff applicable to taxis.
The unions have also sought welfare measures beyond fare increases. Their demands include extending Employees’ State Insurance benefits to auto-rickshaw and taxi drivers, many of whom work outside conventional salaried employment arrangements. The government has agreed to examine how such coverage could be provided.
Another issue raised at the meeting was the shortage of suitable resting facilities for drivers. John indicated that the administration would discuss possible arrangements with the tourism department and hotel operators, rather than treating the matter as part of the fare-setting exercise alone.
Representatives also highlighted difficulties caused by the removal or relocation of taxi and auto-rickshaw stands during National Highway development. The government said it would work with local authorities on restoring affected stands where appropriate, addressing a practical concern for drivers operating from established passenger pickup points.
The operation of two-wheelers as commercial taxis was discussed as well.
(The article ‘Auto-taxi fare revision from Jan’ appeared first on Free Press Journal.)
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