CV public transport modernization: 80 percent franchise consolidation

CEBU, Philippines — With “80 percent” of public transportation franchises in Central Visayas already consolidated, those who have not are still given “due process” and would be allowed to ply their respective routes until Jan. 31.

The deadline, the fifth time it has been extended, lapsed last Dec. 31, 2023.

“Ang tawag ana kay due process period, not an extension. Padalhan na sila og show cause order. Makadagan pa sila (operators who failed to consolidate) until January 31 kadtong less than 60 percent nga nag consolidate ana nga rota,” said Land Transportation Franchising and Regulatory Board (LTFRB)-7 Director Eduardo Montealto, Jr.

“Kadtong (wala nakig-consolidate unya) more than 60 percent consolidated sa kana nga rota kay considered revoked na to ilang franchise. Pero hatagan gihapon sila og show cause order to hear their side,” he added.

Consolidation is part of the government’s public transportation modernization program. This is the reason why modern jeepneys operated by operators who formed themselves into cooperatives are plying routes served by traditional jeepneys.

In an interview with The Freeman yesterday, Montealto revealed that 80 percent of all public transport franchises in the region are already consolidated.

To recall, the Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (PISTON)-Cebu staged several transport strikes towards the end of 2023 to force the government to lift the Dec. 31 deadline for the consolidation of franchises.

PISTON alleged that individually owned franchises are threatened with non-renewal, or outright revocation of their respective franchises if they would not cooperate.

Greg Perez, PISTON-Cebu president earlier said that the modernization program would condemn hundreds of thousands of jeepney drivers and operators into becoming destitute.

“While launching a media blitz that claims more Filipinos have been raised from poverty, and that more have joined the ranks of the employed, the stark reality is that the government have made more lives miserable,” he had said.

“Yanking drivers and operators from jeepneys that have given them a ready job and their families…will only worsen the situation of the lower classes,” he had added.

Perez said that with the issuance of the LTFRB Memorandum Circular 2023-052 last Dec. 22 did not deter drivers, operators, and their allies from continuing the fight against the deadline for consolidation.

The LTFRB Board’s order stated that units of unconsolidated franchises in routes with more than 60 percent consolidation can still ply their routes until Jan. 31.

However, those units of unconsolidated franchises in routes with less than 60 percent consolidation are no longer allowed to operate, since the Dec. 31 deadline already passed, and would be issued show-cause orders.

Montealto, though, said that with 1,357 operational modern jeepneys and around 800 traditional jeepneys still operating in Cebu, only a few franchises are unconsolidated.

“Dinhi sa Cebu gamay na man lang kaayo ang wala na-consolidate ang ilang franchise. So far, mga 80 percent na ang consolidated and we expect mas mosaka pa ang percentage kay sige pa man ang among validation,” he said.

Montealto said that those drivers who did not take part in the consolidation can still gain employment, as the government would help them find a job in transport cooperatives that are already consolidated.

“Kaning mga drivers nga wala nag consolidate tabangan man sa gobyerno nga makasulod sa transport coop nga nag consolidate na. Kay ang usa ka unit, nagkinahanglan gyud na og at least tulo ka drivers,” he said.

On the other hand, Jaime Paglinawan, BAYAN Central Visayas chairperson, vehemently condemned what he alleged as “anti-people policy of the Marcos, Jr. administration,” which he claimed has become deaf to the calls of the drivers and operators to junk the forced franchise consolidation.

He said they see the consolidation scheme as an act of service to the demands of the ruling few, the big business corporations, foreign investors, banks, and financial institutions.

He said franchise consolidation forces small operators to enter transport coops or corporations that would take over their franchises and force them to buy very expensive modern jeepney units.

Being at a disadvantage, he said, small operators are only allowed to operate under provisional authority.

“Worse, small operators are forced to scrap their existing units and only allowed to operate with the modern models. One new vehicle unit would cost P2.8M up to P3M – an amount that is too expensive for small operators to access. Purchasing modern jeepneys will definitely drown them with loans and debts from banks,” Paglinawan said.

He further alleged that the forced franchise consolidation is nothing but a “steppingstone for the government to legitimize privatization of the public transportation sector, masked as a modernization program.

Bayan continues to urge the president to “junk the forced franchise consolidation and to prioritize the rehabilitation of traditional jeepneys.”  — /RHM (FREEMAN)