Franchise consolidation deadline a disaster for drivers and commuters

Bayan President Renato Reyes, Jr.

The deadline for the mandatory consolidation of PUV franchises has been set on December 31, 2023. From individual franchises per unit and operator, there will now only be one franchise for the entire route. Those who fail to consolidate will no longer be allowed to operate their transport units as their provisional authorities will not be renewed. They are effectively phased out.

The current rate of franchise consolidation in NCR is at 26%. By January 1, 2024, as many as 30,862 jeepney units in NCR, or around 74% of the total PUJs in the region will no longer be allowed to operate based on DoTr data. This will result in the displacement of livelihood for thousands of drivers and operators. This will also result in an unprecedented worsening of the mass transport crisis. The situation is likewise dire for UV Express Units. Only 34% of the total UVE units in NCR have been consolidated. Some 4,852 UVE units may no longer be allowed to operate by January 1, 2024.

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The nationwide rate for consolidation for PUJs also shows the threat of displacement of thousands of drivers. Only 57% of total PUJs nationwide have consolidated. Around 43% or 64,639 units have not consolidated their franchises. For UVEs, only 65% have consolidated with 35% or 6,756 still unconsolidated.

Even with their best projections, DoTr can only see 31% of total jeepneys in NCR being consolidated by yearend, leaving 69% or more than 28,000 units unable to operate by January 1. At the nationwide level, the best case scenario for consolidation is only at 68% by year end. This will still mean 47,855 units that will no longer be able to operate by the new year.
There is no compelling reason to impose the deadline for franchise consolidation as this will result in massive jobs displacement and a worsening of the mass transport crisis. It will be disastrous for millions of Filipinos.

Drivers and operators cannot be forced to form co-ops and simply surrender their individual franchises while they face an uncertain future. We have noted that many drivers who were forced to consolidate are now wanting to opt out of the co-ops because of problems with management. The system is not viable for many drivers. Franchise consolidation and the forming of cooperatives should always be voluntary and be based on concrete conditions, not on arbitrary deadlines.

So what is really behind the rush to consolidate individual franchises? The DoTr is paving the way for the eventual corporate take-over of local transport operations. The single-franchise for routes will make it easier for transport monopolies to capture the local market. It is not just about introducing modern jeeps but is more so about corporate control over of mass transport, as big companies try to squeeze profits from the drivers and commuters. After January 1, established companies may come in as new franchise grantees to take over local routes since the previous PUJs are no longer operating. This is the real agenda of the so-called PUV “modernization” program. Drivers and the commuting public are right to oppose this scheme.

We support the planned transport strike of jeepney drivers and operators opposing the forced consolidation of franchises and the commercialized “modernization” scheme of the Marcos government. We stand with drivers and operators in defense of their livelihood and we stand with all commuters in our common demand for a pro-people mass transport system.

Scrap the December 31 deadline!
Scrap the forced franchise consolidation for PUVs!
No to commercialized PUV “modernization” scheme!
Yes to pro-people mass transport system!

Categories: Statements

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