The Public Utility Vehicle Modernization Program (PUVMP) is a welcome development.

It envisions a restructured, modern, well-managed and environmentally sustainable transport sector aimed at providing drivers and operators with stable, sufficient, and dignified livelihoods, thus enabling commuters to get to their destinations quickly, safely, and comfortably.

However, despite its noble objective, the PUVMP continues to get strong resistance.

One contentious component of the modernization program is the industry consolidation, which calls for jeepney drivers and operators to either form or join transport cooperatives or corporations. This way, these transport entities will be entitled to benefits such as government subsidies and access to credit facilities, among others, for the modernization of their fleets and operate the modernized units in a systematic and predictable manner. 

While drivers and operators of traditional public utility jeepneys (PUJ) and UV Express agree with the consolidation—in which the cooperatives or corporations they will be joining in become the employers and the drivers become employees and thus enjoy Social Security System membership and other employment benefits—-they resist the Dec. 31, 2023 deadline.

For traditional jeepney drivers/operators, the deadline is too close for comfort to comply with the consolidation requirements—the necessary documents, membership fees in cooperatives, funds to secure stocks in corporations, and other prerequisites. In fact, membership fees in cooperatives or stocks in corporations are a heavy burden to some drivers/operators of jeepneys and UV Express units.

Failure to consolidate by Dec. 31 would mean cancellation of their respective franchises by Jan. 1, 2024. And that would mean loss of livelihood for a number of drivers/operators.

Reports said that out of 222,617 PUV units, 153,787 have complied with the industry consolidation. The figure, however, includes jeepneys, UV Express units and buses.

Another report revealed that at least 64,639 PUJs and 6,756 UV Express units nationwide have not been consolidated.

The projection is that by Jan. 1, 2024, about 25 percent of the current PUJs will be disenfranchised. 

This means, they will be forced to stop operations. And this may be worse than a transport strike—another problem that confronts the PUVMP.

 
Because of this looming transport crisis, PUJ and UV Express stakeholders and some lawmakers are calling for the extension of the consolidation deadline. 

Apart from the consolidation deadline issue, those who have already consolidated face some challenges.

For instance, a group of jeepney drivers/operators were convinced to consolidate into a corporation. But for lack of funds to meet the requirements of forming a corporation, the jeepney drivers and operators were urged to surrender their franchises to the corporation. In return, operators will be paid ₱800 daily as a form of compensation for surrendering the franchises and separate ₱700 daily payment for drivers. But the promised ₱800 daily payment has not been complied with, hence the group’s decision to file a petition before the Land Transportation and Franchising Regulatory Board to withdraw the surrender of their franchises—a move that has not yet been acted upon.

With all these issues, the government and the PUV stakeholders should sit down and find a win-win solution.

The country can ill-afford a transport crisis, especially that the economy is still recovering from the impact of the Covid-19 pandemic.

The transport crisis can be avoided if we all stick together.