Business Bayani PH

The Leaders Forum, a coalition of business groups and labor unions, is urging the Philippine government to conduct an urgent review of the Public Utility Vehicle Modernization Program (PUVMP). 

The Forum argues that the program, which calls for phasing out jeepneys, could threaten the livelihoods of countless drivers, operators, and their families.

Concerns over affordability and transparency

In a press statement on April 29th, the Forum contends that the PUVMP has not adhered to the principles of “just transition,” which emphasizes fair treatment of workers during economic or industrial changes. 

The group points out that jeepney operators and drivers were not adequately consulted in the design of modern jeepneys or alternatives, and no compensation has been offered for surrendering their existing vehicles.

Furthermore, the Forum criticizes the high cost of modern jeepneys, ranging from ₱2.5 million to ₱3 million for imported units, making ownership unrealistic for many even with financing options. 

They also express concern regarding the mandatory consolidation of franchises into cooperatives or corporations, which they believe could be unfair and lead to management issues.

Environmental and economic impact

The Leaders Forum raises environmental concerns as well, but argues that the PUVMP’s approach could be counterproductive. They express fear that phasing out jeepneys without offering affordable alternatives for commuters might disrupt daily life and harm domestic businesses. This, they say, could raise living costs and contribute to inflation.

Opportunities for local industry overlooked

The Forum acknowledges the potential of the PUVMP to benefit the Philippine jeepney manufacturing industry and create jobs. However, they criticize the government for neglecting this potential. They point out that local manufacturers currently lack the capacity to produce enough electric jeepneys to meet demand quickly.

The Forum proposes increased financial backing from the government to bolster domestic jeepney production and a more realistic timeline for the rollout of locally-made vehicles.

Impact on commuters and workers

The Forum expresses concern about the immediate impact on commuters, particularly low-wage earners. They highlight the insufficient supply of modern jeepneys to accommodate hundreds of thousands of commuters, while potentially displacing 38,000 according to estimates by the Land Transportation Franchising Regulatory Board (LTFRB). 

The extension of the consolidation deadline by the government does not guarantee the availability of affordable public transport options in the future, according to the Forum.

Recommendations for reform

The Leaders Forum calls for a comprehensive review of the PUVMP to address legal, financial, and human rights concerns. They propose suspending the consolidation deadline indefinitely and advocate for the creation of a sustainable, affordable, and carbon-neutral mass transport system.

This system, they suggest, should include programs to support local jeepney manufacturers in designing and producing affordable, safe, and environmentally friendly vehicles. 

The government, they add, should back research and development efforts and provide subsidies to make amortization terms manageable and potentially profitable for operators and drivers.

The Forum emphasizes the importance of offering skilling, reskilling, and upskilling opportunities for transport workers as part of a “just transition” plan. Additionally, they urge the government to establish comprehensive social protection measures before implementing any PUVMP reforms.

Call for transparency and stakeholder engagement

The Forum concludes by emphasizing the need for a transparent and inclusive process in crafting national transportation policy. They believe the PUVMP should have resulted from meaningful dialogue with all stakeholders, including transport workers, commuters, and industry representatives. This, they argue, would ensure everyone has a voice in shaping the future of public transportation in the Philippines.