LTFRB seeks dialogue with remaining transport groups opposed to PUV Modernization

The Land Transportation Franchising and Regulatory Board (LTFRB) is expecting that 85 percent to 90 percent of public utility vehicles (PUVs) will be consolidated into either a corporation or a cooperative after the Dec. 31 deadline for consolidation, which is part of the PUV modernization program.

“We expect 85 to 90 percent of the drivers and operators to be consolidated into a cooperative or corporation until December 31 because we already simplified the processes for the consolidation,” said LTFRB chairman Teofilo Guadiz III 

But Guadiz said they will continue holding a dialogue with the remaining transport groups that are opposing the PUV modernization to further explain and come up with a middle ground in order to ensure the success of the program.

Guadiz said that he will sit down with the leaders of the Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) which initiated the three-day transport strike.

He said he hopes to have the same dialogue with another transport group, Manibela, headed by Mar Valbuena.

“We will look into the areas where we could have a mutual understanding or some concessions with them,” said Guadiz.

“My office is always open to any request from them and in return, all we are asking for us to have a dialogue to identify which of their concerns are doable and which of them need more time for us to iron out,” he added.

The root of the strike

The Dec. 31 deadline for consolidation is one of the main issues that prompted PISTON to hold the transport strike.

In an earlier statement, PISTON National President Mody Floranda said their main concerns regarding the implementation of the PUV Modernization Program have not been met, particularly the demand to repeal the franchise consolidation component of the program and suspend the entire PUV Modernization Program.

“The franchise consolidation scheme may result in the monopoly of a few big fleet managers or corporations who have the necessary capitalization to control PUV routes, thus concentrating market control in the hands of a few corporate entities and effectively stripping small-time operators of their democratic control over their vehicles and livelihoods,” said Floranda.

According to Floranda, around 80 percent of all jeepney operators in the country only own one jeepney and with the planned consolidation, the majority of jeepney operators are at risk of being displaced.

But Guadiz said he already had a discussion with major transport groups in the country and all of them, according to him, have expressed support for the modernization program.

In fact, he said 70 percent of the PUVs in the country have already consolidated into either a cooperative or corporation.

On the part of the public utility jeepneys, Guadiz said it is now at 60 percent.

Points of clarification

During the first day of the transport strike, protesters are seen bearing placards saying that they are opposed to jeepney phase out.

Guadiz clarified that there will be no phase out after the Dec 31 deadline for consolidation. 

“The government gives them enough time until such time that the Land Transportation Office would say that their motor vehicles are no longer road-worthy—which means to say that they have more than enough time to come up with motor vehicles.

“So it is clear, there will be no jeepney phase out after the December 31 deadline for consolidation because our only request to them is to consolidate into a corporation or a cooperative because this is an initial step for the fleet modernization,” he added.

Another issue raised is whether or not drivers and operators should be excused from consolidation.

Guadiz said this is not possible since the PUV modernization will be difficult to implement if the request for franchise would be done on an individual basis.

As he emphasized that traditional jeepney drivers and operators will be given enough time to modernize their unit, Guadiz cited the government assistance to all PUV drivers and operators.

He said the government is offering around P300,000 subsidy for each unit aside from the assistance package that would be given by financial institutions like the Land Bank of the Philippines and the Development Bank of the Philippines.

“So this is not a loan, this amount is a gift from the national government to our drivers and operators,” said Guadiz.