Biz groups urge review of PUV modernization deadline

Two days before the 30 April deadline for the franchise consolidation of public utility vehicles, notable business organizations in the country, namely the Employers Confederation of the Philippines, Philippine Exporters Confederation, Inc., and the Philippine Chamber of Commerce and Industry are urging the current administration to urgently review the Public Utility Vehicle Modernization Program (PUVMP).

President Ferdinand Marcos Jr. recently said he was firm in proclaiming that the 30 April deadline for the franchise consolidation of PUVs for the PUVMP will no longer be extended, as PUV modernization efforts are now urgent and should be done.

According to the groups, they believe that PUVMP, 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.

"It is evident that the principles of a "just transition" have not been upheld in the formulation, execution, and oversight of the PUVMP. Critically, jeepney operators and drivers were not consulted about the design of modern jeeps or alternative vehicles. There has been no compensation for the surrender of their existing units," the leaders of the three business groups, along with leaders of Federation of Free Workers, Sentro ng mga Nagkakaisa at Progresibong Manggagawa and Trade Union Congress of the Philippines, said in a statement on Sunday.

The groups, dubbed 'Leaders Forum', stressed that the importation of modern jeepneys, which range from P2.5 to P3 million for an imported vehicle, is prohibitively expensive, making ownership unfeasible for many drivers and operators, even with amortization options.

They said that the forced consolidation of franchises into cooperatives or corporations often without genuine consent or equitable participation—is against the spirit of 'cooperativism', which would likely lead to significant collective-action problems.

Anti-UN's Global Goals

On the other hand, the groups said the PUVMP 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 phasing out of jeepneys without providing an affordable alternative for working-class commuters could create a domino effect on domestic businesses and the economy, potentially raising the cost of living and feeding into inflation. This concern further emphasizes the need for a careful and considerate approach to modernizing public transport," they said.

The Leaders Forum also sees that the PUVMP, if properly done, could also present an opportunity to enhance the Philippines’ jeepney manufacturing industry and potentially create thousands of jobs for local workers.

Unfortunately, they said that the Land Transportation Office (LTO), Land Transportation Franchising and Regulatory Board (LTFRB), and the Department of Transportation (DOTr) appear to overlook this potential to bolster the country’s domestic automotive industry.

"Our local jeepney producers cannot currently produce or assemble units quickly; initial estimates suggest they can produce at most 5,000 units per year. It would take several years for Filipino manufacturers to supply enough electric jeepneys for the nation," they said.