PUV operators, drivers who fail to consolidate can join other coops — OTC

Public utility vehicle (PUV) operators and drivers who failed to consolidate or apply for consolidation on or before the Dec. 31, 2023 deadline can still continue their livelihoods in the public transport sector, the Office of Transportation Cooperatives (OTC) said Saturday.

At a news forum, OTC chairman Andy Ortega said that drivers and operators of unconsolidated PUV units would not ultimately lose their livelihoods as they can still join or be absorbed by other cooperatives or consolidated PUV entities.

"Before the end of December, our office already contacted cooperatives and federations of cooperatives nationwide… we already relayed to them our concern that drivers of these operators, who did not consolidate, can be absorbed by them," Ortega said.

Ortega said cooperatives committed to give opportunities to drivers who will be displaced.

With the period to consolidate finally lapsed, the permits issued to individual operators in all routes without consolidated Transport Service Entity (TSE) have been effectively revoked starting Jan. 1, 2024.

The Land Transportation Franchising and Regulatory Board (LTFRB) later issued Memorandum Circular No. 2023-052, which allowed individual operators in routes with less than 60% TSEs or zero consolidated TSEs to operate until Jan. 31, 2024.

The leeway, however, does not give them more time to consolidate as the government remained firm that the deadline to apply for consolidation already expired on Dec. 31, 2023.

This means, starting Feb. 1, 2024, all unconsolidated PUVs would be considered "colorum" or illegal and would be apprehended by authorities.

Options for operators

As for the operators who failed to consolidate, Ortega said, "They can join another cooperative because they're within the same industry."

"This is what they can do… but it's their decision," he said.

Data from the LTFRB showed that 76% or 145,721 units of UV Express and public utility jeepneys (PUJs) have consolidated under the government's PUV Modernization Program.

In the National Capital Region, only 21,655 or 51% out of 42,177 PUJs have met the end-2023 consolidation deadline, leaving 20,552 units up for revocation, according to a report on 24 Oras last Thursday.

Started in 2017, the PUVMP aims to replace jeepneys with vehicles that have at least a Euro 4-compliant engine to lessen pollution and replace units that were not deemed roadworthy under the standards of the Land Transportation Office.

The Consolidation of individual PUV franchises into cooperatives or corporations is among the prerequisites in implementing the PUVMP.

Ortega said the ultimate goal of the program is to modernize the public transport system and remove the boundary system by making the income of drivers fixed.

"Like employees of companies or corporations, they will be entitled to SSS, Pag-IBIG, and PhilHealth benefits," he said. — VDV, GMA Integrated News