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Consolidation deadline: What it means for jeepney drivers, operators

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Andrea Taguines, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Members of several jeepney associations hold a protest as they begin another round of transport strike at the University of the Philippines in Diliman Quezon City on December 14, 2023. A number of transport groups expressed concern about the scheduled deadline for " franchise="" mandated="" by="" the="" PUV="" modernization="" program="" on="" December="" Jonathan="" ABS-CBN="" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/12/19/20231214-jeepney-strike-ltfrb-jc-3025.jpg"/><figcaption>Members of several jeepney associations hold a protest as they begin another round of transport strike at the University of the Philippines in Diliman Quezon City on December 14, 2023. A number of transport groups expressed concern about the scheduled deadline for &#x27;franchise consolidation&#x27; mandated by the PUV modernization program on December 31. <em>Jonathan Cellona, ABS-CBN News</em></figcaption></figure></div><p>MANILA — The Department of Transportation (DOTr) on Tuesday said the government has simplified the application process to help drivers and operators comply with the Dec. 31 consolidation deadline for jeepneys under the PUV Modernization Program.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/news/12/16/23/piston-mulls-raising-puv-modernization-issue-to-sc">PISTON mulls raising PUV modernization issue to SC</a></li></ul><p>The consolidation into cooperative or a corporation is the first step of the PUV Modernization Program. </p><p>But what does it really mean?<br/> <br/>Jeepney drivers and operators are required to form or join a cooperative or a corporation so that the government can come up with more efficient and systematic routes for the sake of passengers, DOTr Spokesperson Usec. Timothy John Batan said.<br/> <br/>He said consolidating would also provide transport workers with a more secure salary system, social security benefits, and a better chance of acquiring loans to buy modernized jeepneys.<br/> <br/>“The government, through DBP (Development Bank of the Philippines), LandBank, we’ve been providing subsidies for modernizing, and it facilitates that process,” said Batan.<br/> <br/>“Currently, our jeepneys (are) fragmented. Kanya-kanya, individual operators, individual franchises and what has this led to? A dog-eat-dog environment in our roads, in our public transport... The goal in consolidation is get everyone together, there will be one, two or three consolidated operator per route who is going to run that route in an organized and systematic manner. The objective here is to make the system more reliable, more dependable so that our passengers can more predictably plan their travels,” he added.<br/> <br/>Following talks with transport group PISTON, which vehemently opposes the program, the Land Transportation Franchising and Regulatory Board (LTFRB) cut down the consolidation requirements to just three documents:<br/> </p><ol>	<li>Certificate of registration of their vehicle from the Land Transportation Office (LTO)</li>	<li>Registration of the cooperative or corporation they are joining</li>	<li>Attestation or certification that they are joining a corporation or cooperative</li></ol><p> <br/>“All they have to do is to submit these documents by December 31. After that, they can continue operating on January 1 onwards,” Batan said.<br/> <br/>He also clarified that the “December 31 deadline is only for consolidation, not yet for modernization” of PUV units.<br/> <br/>Those who will consolidate can still use their jeepney units as long as they pass the roadworthiness tests, the DOTr said.<br/> <br/>Some transport groups claim that many of them could lose their livelihood since the franchise of those who won’t be able to begin the process of consolidation by Dec. 31 will be revoked by Jan. 1.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2904579" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><p>But the Office of Transportation Cooperatives (OTC), an affiliate agency of the DOTr, said a transport group would only need to signify their interest and commitment to form a coop to get a certification from them.<br/> <br/>“You will be given a certificate to give to LTFRB. We made it easier pa to produce that document, na ikaw ay interesadong mag-kooperatiba. That’s how we want to further help yung mga kaibigan nating humahabol sa deadline,” said OTC Chairman Ferdinand Ortega.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/multimedia/photo/12/18/23/looming-phaseout-send-chills-to-jeepney-drivers">Looming phaseout send chills to jeepney drivers</a></li></ul><p>“Meron kaming ire-require lang na affidavit of undertaking….After mag-file sila (with LTFRB), babalik ulit sila sa office namin para ma-assist namin sila all the way from organizing, registration, accreditation, and even doon sa mga financing component na kakailanganin,” explained Rommel Laurena of OTC’s Planning and Evaluation Division.<br/> <br/>The OTC said even the capital requirement to form a coop has been lowered to P30,000 from P300,000 as another form of relief for transport workers.<br/> <br/><strong>TRANSPORTATION COOPERATIVES IN PH: 1,738</strong></p><table border="1" cellPadding="1" cellSpacing="1" style="width:500px"><thead><tr><th scope="col">YEAR NO. OF ACCREDITED TRANSPORT COOPERATIVES</th></tr></thead><tbody><tr><td>2017</td><td style="text-align:right">438</td></tr><tr><td>2018</td><td style="text-align:right">108</td></tr><tr><td>2019 </td><td style="text-align:right">459</td></tr><tr><td>2020</td><td style="text-align:right">347</td></tr><tr><td>2021</td><td style="text-align:right">263</td></tr><tr><td>2022</td><td style="text-align:right">101</td></tr><tr><td>2023</td><td style="text-align:right">65</td></tr></tbody></table><p><strong>SOURCE: OTC</strong><br/> <br/>So far, there are already 1,738 transport cooperatives across the country, according to the OTC, more than a thousand of which were accredited by the OTC following the launch of the PUV Modernization Program in 2017.<br/> <br/>“Talagang pakonti na nang pakonti because the majority has already decided. So regarding sa consolidation deadline, talagang tama na ito, December 31,” said Ortega.<br/> <br/><strong>CONTINUED RESISTANCE</strong></p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2903280" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><p>PISTON and Manibela continue to resist, citing problems like coop mismanagement, high membership fees, and the loss of control over their individual franchises and units.<br/> <br/>“Ang consolidation po kasi, monopolyo po talaga ito e. Ang mga opisyales na lang, ang chairman na lang ang masusunod sa aming mga prangkisa at sasakyan. Wala na po kaming karapatan, sila na lang ang magmamando dito,” said Manibela President Mar Valbuena during a protest in Caloocan City on Monday.<br/> <br/>But the OTC said there are measures in place to guard against abuse, including Republic Act 9520 or the Philippine Cooperative Code of 2008.<br/> <br/>“Lahat ng mga kinakailangang malaman ng mga miyembro at opisyales, ang gagawin nila ay nakapaloob dito. Even yung paghalal ng pamunuan at pag hindi maganda ang ginagawa ng pamunuan, anong gagawin ng mga miyembro, lahat yun, pati yung karapatan at pribiliyeho ng isang miyembro, nakapaloob dito,” said OTC Board Secretary Ramil Urrera.<br/> <br/>The OTC added that it checks on the compliance of transport cooperatives as well, even handing out sanctions if necessary.<br/> <br/>“Pwede naming i-suspend yung kanilang certificate of good standing. Pagka kasi suspended or hindi na kami nag-issue ng certificate of good standing sa isang transport cooperative, hindi siya makakapag-transact ng business with LTFRB and LTO. Then sa financing namin through (Government Financial Institutions), hindi rin siya makakapag-apply ng loan or makaka-avail nung mga financial assistance,” noted OTC Operations Division Senior Staff Celino Geronimo.<br/> <br/>But Ortega also stressed the importance of electing good leaders to manage the coop.<br/> <br/>According to the OTC, it’s also the coop that will decide on the membership fee amount.<br/> <br/><strong>FINANCING WOES</strong></p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2903236" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><p><br/>But for some who had already undergone the consolidation process, acquiring modern PUVs is still seen as a challenge.<br/> <br/>Jeepney operator Gildo Abis joined a corporation back in 2020. But until now, he claimed that they have yet to get the promised subsidy from the government, forcing them to look for other, more expensive loans.<br/> <br/>“Sabi (ng corporation), sige, mangutang na tayo, pero sa private bank. Ang down sa private bank, P360,000. E sinong makakaya sa’min na operator? Wala ngang pondo, hindi naman pinondohan ng gobyerno yung subsidy ng P160,000,” he complained.<br/> <br/>The DOTr, meanwhile, insists that it is continuously working to make public and private financing available for those in need.<br/> <br/>“The level of subsidy was increased three times already. We started at P80,000, we’ve increased it to P160,000, and now it’s P200,000 to P300,000. On top of that, we have other social welfare support (for drivers),” noted Batan.<br/> <br/>But when asked about the high interest rates when it comes to loans, he said the DOTr will take this up again with the banks.<br/> <br/>“We’ve been in continuous discussion with the banks to find ways to lower the cost of borrowing,” he said.<br/> <br/>While many questions regarding the program remain, one thing is clear: the government will no longer extend the consolidation deadline, given that according to its data, 70 percent of PUVs nationwide are already in the bag.<br/> <br/>Those who fail to apply for consolidation will be considered colorum by 2024.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2902975" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The consolidation into cooperative or a corporation is the first step of the PUV modernization program. But what does it really mean?

Consolidation deadline: What it means for jeepney drivers, operators

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Consolidation deadline: What it means for jeepney drivers, operators

Andrea Taguines,

ABS-CBN News

Published December 19, 2023 11:57 PM PHT

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Updated December 20, 2023 10:40 AM PHT

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