KSRTEA was registered as a trade union under Indian Trade union Act in 1967. The founder members were Mechanical Staff of Central Works, Pappanamcode TVM and Com.Abdulkhader was the first General Secretary.
With the rise of the political and trade union movement in Kerala and with the patronage of the undivided communist party, Kerala State Transport Employees Union affiliated to AITUC had become the major trade union in KSRTC. The undemocratic functioning of the leaders of the union where then openly opposed by the rank and file of the union. The grievances of the workers were not attended properly. Even committee meeting and annual conferences to be conducted according to bye-law were avoided. The anti working class activities of the employees union paved way to certain units of the union cutting of the connection with the permanent body and not remitting the monthly subscriptions of the members to Head Office. A section of conductors working in the Employees Union formed a separate union of there own.