Employers, workers urge review of PUV Modernization Program

Employers and workers groups on Monday called on the government to immediately review the Public Utility Vehicle Modernization Program as they warned of its adverse impact on the livelihood of jeepney operators and drivers.

The Philippine Chamber of Commerce and Industry, Trade Union Congress of the Philippines, Employers Confederation of the Philippines, Federation of Free Workers, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, and Philippine Exporters Confederation made the call in a Monday joint statement.

"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.

"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," they said.

Further, the groups noted that there had been no compensation for the surrender of existing jeepney units and that the importation of modern jeepneys, which range from P2.5 to P3 million, was "prohibitively expensive."

They added that the "forced consolidation of franchises" into cooperatives which they said often without consent or equitable participation is against the spirit of cooperativism and "likely to lead to significant collective-action problems."

For these groups, the PUVMP seemingly contravened the UN Sustainable Development Goals that "no one should be left behind" in any economic and 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 warned.

Executed properly, the groups said the PUVMP could present an opportunity to enhance the country's jeepney manufacturing industry and could potentially create thousands of jobs for Filipinos.

However, they lamented that the Department of Transportation, the Land Transportation Office, and the Land Transportation Franchising and Regulatory Board appeared to have overlooked the potential of the local automotive industry.

"We advocate for increased government support through its financial institutions to build the local jeepney industry’s production capacity. Additionally, adopting a more realistic timetable for the rollout of domestic jeepneys could facilitate this transition," the groups said.

Further, the groups stressed the need for skilling, reskilling, and upskilling opportunities within the transport industry and related fields, saying these were essential components of a just transition.

"Comprehensive social protection measures should be established before implementing any PUVMP reforms...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," they said.

"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 groups added.

On Sunday, the DOTr stood firm that they would implement the PUVMP while awaiting the decision of the Supreme Court on the petition of jeepney drivers and operators to halt the program.

The application period for consolidation of individual PUV operators to form transportation cooperatives or corporations ends on April 30.

The PUVMP, which started in 2017, aims to replace jeepneys with vehicles with at least a Euro 4-compliant engine to lessen pollution and replace PUVs that were not roadworthy by the standards of the Land Transportation Office.

Under the program, jeepney drivers and operators were required to join or form cooperatives. They could also apply for new franchises but as part of transport cooperatives. — DVM, GMA Integrated News