The country’s largest workers and employers groups are strongly urging the government to urgently review the Public Utility Vehicle Modernization Program (PUVMP) to take into consideration the estimated loss of over 38,000 jobs, promotion of local manufacturing for the iconic Pinoy jeepneys instead of patronizing the imported modern jeepneys, and more consultation with the affected sector.

This was emphasized in a joint statement released over the weekend by the Leaders Forum, representing both workers and employers and signed by their respective heads — Edgardo G. Lacson, chairman of Employers Confederation of the Philippines; Jose Sonny G. Matula, national president Federation of Free Workers; Enunina V. Mangio, president Philippine Chamber of Commerce and Industry; Daniel L. Edralin,  chairperson Sentro ng mga Nagkakaisa at Progresibong Manggagawa; Sergio Ortiz-Luis, Jr.,  president Philippine Exporters Confederation, Inc.; and Raymondo Democrito C. Mendoza, president Trade Union Congress of the Philippines. The Leaders Forum issued the statement in light of the April 30 deadline on the phase out of jeepneys.

“We call for an urgent review of the PUVMP in order to address its legal, financial and human rights infirmities; a suspension of the deadline for consolidation for an indefinite period of time; and advocate for the creation of an affordable, sustainable and carbon-neutral mass transport system,” the statement read.

In a strongly worded statement, the Leaders Forum criticized the lack of consultation. “Critically,  jeepney operators and drivers were not consulted about the design of modern jeeps or alternative vehicles,” it stated.

“It is evident that the principles of a ‘just transition’ have not been upheld in the formulation, execution, and oversight of the PUVMP,” said the Leaders Forum statement stressing that the

program, which includes the phase-out of jeepneys—a cultural icon in the Philippines—will impact the livelihoods of countless jeepney operators, drivers, and their families.

For instance, the group pointed out that there has been no compensation for the surrender of their existing units. Furthermore, the imported modern jeepneys, which range from P2.5 million to P3 million a unit, is prohibitively expensive, making ownership unfeasible for many, even with amortization options.

Additionally, the forced consolidation of franchises into cooperatives or corporations—often without genuine consent or equitable participation—is against the spirit of “cooperativism and likely to lead to significant collective-action problems.“ The PUVMP also seemingly contravenes the United Nations' Social Development Goals that "no one should be left behind" in any economic or industrial changes made in response to the climate emergency.

The group believes that the phasing out of jeepneys without providing an affordable alternative for working class commuters could only create a domino effect on domestic businesses and the economy, potentially raising the cost of living and feeding into inflation. Thus, the groups emphasized the need for a careful and considerate approach to modernizing public transport.

But if done properly, the Leaders Forum, said the PUVMP program could also present an opportunity to enhance the Philippines’ jeepney manufacturing industry and potentially create thousands of jobs for local workers. Unfortunately, they said, the “LTO-LTFRB-DOTr (Land Transportation Office-Land Transportation Franchising and Regulatory Board-Department of Transportation) group appears to overlook this potential to bolster our domestic automotive industry.”

The business leaders and workers emphasized that the local jeepney producers currently lack the capacity to produce or assemble units quickly. Initial estimates suggest they can produce at most 5,000 units per year. This means, it would take several years for Filipino manufacturers to supply enough electric jeepneys for the nation.

To boost the capacity of the local jeepney assemblers, the Leaders Forum advocated for increased government support through its financial institutions. Additionally, adopting a more realistic timetable for the rollout of domestic jeepneys could facilitate this transition.

This system should include support for local jeepney manufacturers to design and produce vehicles that are affordable, safe, and environmentally friendly.

The supply of modern jeeps is insufficient to accommodate hundreds of thousands of commuters, even as 38,000 will lose their jobs, as estimated by the LTFRB.

Despite the extension of the consolidation deadline by Malacañang to the end of April, the groups said there remains no assurance that affordable public transport options will be available thereafter.

The government must also back research and development efforts and provide subsidies to ensure that amortization terms for operators and drivers—including those who have already consolidated and fought for elements of just transition into the PUVMP—are affordable and potentially profitable.

Further, they stressed the importance of skilling, reskilling, and upskilling opportunities within the transport industry and related fields as essential components of just transition. “Comprehensive social protection measures should be established before implementing any PUVMP reforms,” the statement added.

Lastly, the group said that the PUVMP, being a significant national policy, should have been the direct result of meaningful and effective social dialogue process, backed by research, science and economics.

“This process must ensure that all stakeholders—including transport workers, commuters, and industry representatives—have a chance to contribute their insights and objections before any transportation modernization legislation or issuance is passed, to safeguard this essential public service,” the statement concluded.