Senate adopts reso asking LTFRB to defer June 30 jeepney phase out
Published Feb 28, 2023 01:20 pm
Senators on Tuesday, February 28 adopted a resolution calling on the Land Transportation Franchising and Regulatory Board (LTFRB) to postpone the planned phase out of all traditional jeepneys by June 30.
This followed their approval in today’s Senate plenary session.of the resolution of Sen. Grace Poe that the LTFRB should first resolve the valid and urgent concerns raised by affected operators and drivers regarding the financial viability of the program.
In her sponsorship speech, Poe said the planned phase out has been extended four times.
In recent years, the Department of Transportation (DOTr) and LTFRB have been implementing the Public Utility Vehicle Modernization Program (PUMP).
The major components of the PUMP is the route rationalization and consolidation into cooperatives of jeepneys, UV Express, and Filcabs.
Poe pointed out that the DOTR required existing operators to consolidate according to the following requirements:
– Routes shall have a minimum number of units, as set by the Local Public Transport Route Plan; and
– A route shall have the least possible number of operators, as determined by the LTFRB.
The DOTr required operators of new or developmental routes to have a minimum fleet size of 15 units.
The LTFRB, on the other hand, required al existing individual franchise holders to form juridical entities which would in turn file for a Petition for Consolidation of Certificates of Public Conveyance (CPC)1; 1LTFRB Memorandum Circular No. 2018-008.
On Feb. 20, 2023, the LTFRB then directed all existing franchise holders to comply with the consolidation directive within one year, and later on converted all individual franchises into provisional authorities (PAs) with a one-year validity.
The deadline of the consolidation directive- as well as the validity of the one-year PAs- has been continuously extended to allow PUVs time to comply with the onerous requirements.
On Feb. 20, 2023, the LTFRB issued Memorandum Circular No. 2023-013 which gives PUV operators only until June 30, 2023 to join an existing consolidated entity, or, on Oct. 13, 2023, to form a juridical entity and file a petition for consolidation, or else their PCs wil be revoked.
Poe said various transport groups have condemned the LTFRB’s decision and expressed concern on the impact of the move on operators and commuters alike:
– The transport group PISTON noted that the cost of acquiring “modern jeepneys” – estimated to be around P2.4 to 2.8 million – is “burying small-time operators deep in debt’’.
– The citizen’s group Lawyers for Commuters Safety and Protection noted that the LTFRB’s decision would phase out around 50,000 jeepneys and lead to a transport crisis.
– Transport group MANIBELA announced that their organization of 40,000 operators would hold a week-long strike against the phaseout of traditional jeepneys. Poe stressed that the LTFRB should not coerce PUV operators into complying with their guidelines without addressing the sector’s concerns, particularly on the high capital costs of acquiring of modern jeepneys. She stressed that transport groups – in particular PISTON – have noted that they are not against modernization per se, but that they are seeking a “just transition” process. “Whereas, to continue with the phaseout without taking these concerns into consideration would run counter to the directive of the Constitution to promote social justice in all phases of national development,” the resolution stated. Poe pointed out that there are bills pending which seek to promote a “just transition” for PUV Modernization, which are the result of consultations with transport groups, and which could address the flaws and concerns of the current program.
– Transport group MANIBELA announced that their organization of 40,000 operators would hold a week-long strike against the phaseout of traditional jeepneys. Poe stressed that the LTFRB should not coerce PUV operators into complying with their guidelines without addressing the sector’s concerns, particularly on the high capital costs of acquiring of modern jeepneys. She stressed that transport groups – in particular PISTON – have noted that they are not against modernization per se, but that they are seeking a “just transition” process. “Whereas, to continue with the phaseout without taking these concerns into consideration would run counter to the directive of the Constitution to promote social justice in all phases of national development,” the resolution stated. Poe pointed out that there are bills pending which seek to promote a “just transition” for PUV Modernization, which are the result of consultations with transport groups, and which could address the flaws and concerns of the current program.