The Supreme Court (SC) was asked on Wednesday, Dec. 20, to stop the implementation starting Jan. 1, 2024 of the Public Utility Vehicle Modernization Program (PUVMP) that would cancel existing franchises of all public utility jeepneys (PUJs) and their consolidation into transport cooperatives and corporations.
The petition which sought from the SC the issuance of a temporary restraining order (TRO) was filed by the Pagkakaisa ng mga Samahan ngTsuper at Opereytor Nationwide (PISTON), a representative of a commuters’ group, and several individuals. PISTON is a group of jeepney drivers and operators.
Named respondents in the petition were Transportation Secretary Jaime J. Bautista and Land Transportation and Franchising Regulatory Board (LTFRB) Chairperson Teofilo E. Guadiz III.
Challenged in the petition were seven administrative issuances by the Department of Transportation (DOTr) and LTFRB which were allegedly done with grave abuse of discretion and violative of the constitutional and statutory rights of petitioners. These are:
1, DOTr Department Order (DO) No. 2017-011(Re: Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuance).
2. LTFRB Memorandum Circular (MC) 2018-008(Consolidation of Franchise Holders in Compliance with Department Order No. 2017-011, otherwise known as the Omnibus Franchising Guidelines (OFG).
3. LTFRB MC 2019-066 (Simplified Process for Applications for Consolidation of Individual and Existing Franchise Holders in Compliance with the PUVMP and the Department Order No. 2017-011 (OFG)).
4. LTFRB MC 2020-084 (Extension of Time to File Application for Consolidation Pursuant to Industry Consolidation of PUVMP).
5. LTFRB MC 2021-021 (Guidelines for the Issuance of Provisional Authority to Units of Individual Operators with Pending Application for Consolidation and those that Failed to File an Application for Consolidation Pursuant to the Omnibus Franchising Guidelines (OFG) and the Procedure in the Qualification and Selection of Applicants).
6. LTFRB MC 2023-047 (Guidelines for the Acceptance of Application for Consolidation); and vii. LTFRB MC 2023-051 (Allowing Operations of Consolidated Transport Services Entities in All Routes with Filed Applications for Consolidation on or before31December 2023).
The implementation of the administrative issuances would eventually phaseout passenger jeepneys from roads starting Jan. 1, 2024.
The petitioners told the SC that the DOTr and LTFRB issuances violate the constitutional provisions that guarantee freedom of association, right to due process, right to equal protection of laws, right against unreasonable seizures, and the right to gainful employment and livelihood.
They said the issuances are invalid exercise of police power and a usurpation of legislative prerogative.
They also said the orders and circular are overly broad and infringe the constitutional freedom of association as these issuances force the drivers and operators to join an organization or cooperative.
The SC, they pointed out, has repeatedly ruled that right to join an association carries with it the right not to join.
They said: “Through the issuance of MC NO. 2023-051, the individual operators are being penalized for not joining an association. They are essentially left with no choice but to consolidate if they wish to keep their livelihood. This is gross and patent violation of the individual operators’ freedom of association as guaranteed by the Constitution.”
“In addition, compelling individual operators to form either a cooperative or corporation violate the provisions of Republic Act No. 9520 or the Cooperative Code of the Philippines and Republic Act No. 11232 or the Revised Corporation Code,” they said.
Thus, they said, the issuances are oppressive, overreaching and confiscatory as they will have a damaging impact on the livelihood of the drivers and operators, and even the commuters.
They cited a 2020 study showing the price of modern PUJs (public utility jeepneys) ranged from P1.4 million to P1.6 million per unit in 2017. However, they said, the price increased to P2.5 to P2.6 million.
“The high unit prices translate to high amortization payments and compounded interests, thus, imposing an enormous financial burden on PUV operators and drivers,” they stressed.
They said that prohibiting about 68,000 jeepneys from plying their route next year will result in longer lines, longer wait and even inability of commuters to get transport to their work.
“Worse, the scarcity of public transport could result in more expensive fares for taxis and TNVS like Grab. Worse, more people will be forced to buy second-hand cars and motorcycles resulting in heavier traffic and carbon emission in urban areas,” they also said.
At the same time, the petitioners said: “No legislation was passed to support the so-called PUV ‘modernization’ program or its various facets including mandatory consolidation nor has there been any amendment to Republic Act No. 9520 of the Philippine Cooperative Code of 2008, Article 4 (1) of which provides that cooperatives are voluntary organizations.”