Metro Manila was tagged as having the fifth worst public transportation system worldwide in the 2022 Urban Mobility Readiness Index launched by the Oliver Wyman Forum and the University of California, Berkeley. This study examined 60 metropolises across the globe to assess their public transport system, including, among others, the reliability of public rail systems, various modalities of transport (such as traditional and modernized jeepneys and mini-buses), and pedestrian lanes. 

There is no doubt that Metro Manila’s public transport system presents an ordeal to commuters, drivers, conductors, and all others who share the roads daily. Just for one example, during rush hour commuters regularly have to wait for at least 30 minutes to get a ride in a public utility vehicle (PUV) just for them to get to where they’re going in at least 45 minutes on average. 

The rapid urbanization since the 1980s due to deeply centralized employment opportunities in Metro Manila and Greater Manila, insufficient drainage that can cause heavy volumes of traffic once the rain pours, unstrategic placement of pavements, and lack of sustainable walkways for pedestrians to safely cross and walk on the streets, etc. are among the factors behind the still worsening public transport system in Metro Manila. 

Poor public transport dehumanizes pedestrians and passengers. In particular, it requires the conditional surrender of personal space in exchange for the opportunity to get to work on time and to arrive home and spend quality time with loved ones. Even the modernized minibuses and electric jeepneys tend to allow an unlimited number of passengers—highly evident during rush hour when passengers, regardless of pregnancy or disability, even stand right at the doorstep of the vehicle. This applies not only to modernized jeepneys but also to public railways where personal space is sacrificed for the sake of catching up with time.

Faltering modernization 

The modernization program, intended to replace traditional jeepneys with modern-type air-conditioned ones run by cooperatives, has done little to ease the problem. The continuous attempts of organized jeepney drivers and operators to express their dissent only show that the state is still unable to strategically align its policies toward a mass-oriented and collective form of development. The discourses on traffic reforms constantly point toward still-unrealized essentials: providing eco-friendly walkways and sidewalks that would encourage walking and biking.  

However, this has been easier said than done since the decentralization of local government units (LGUs), when the devolution that is manifested through public works often becomes a topic of comparison. For example, Marikina is often hailed as one of the cleanest and greenest cities in Metro Manila due to the public works initiatives of its LGU. But the situation is not the same with other LGUs in the metro that tend to focus their budgets on other projects such as social services. 

On the other hand, deregulation on the part of the state has also become a problem. For instance, the lack of car ownership regulations has resulted in the domination of automobiles in Metro Manila alone. The government, alongside the conglomerates, pushed for the construction of skyways on public-private partnerships and official development assistance (ODA) by intergovernmental agencies that aim to promote economic collaboration and leverage with developing countries like the Philippines. 

2-pronged approach 

Urbanization efforts and lack of decentralization in terms of development and employment opportunities have resulted in this structural and cyclical concern that even the “Balik-Probinsya” program, the Duterte administration’s attempt to encourage a return to the provinces, could not solve. 

Metro Manila’s horrendous public transport system needs to be addressed with a two-pronged approach. 

From the bottom-up perspective, the human agencies concerned with the improvement of the public transport system has to be fully harnessed. They can be a force to be reckoned with in terms of lobbying for relevant legislation and serving as avenues for reforms and necessary arrangements in policymaking and program implementation. Transport groups are equally vital key players toward reforms considering that they are waging their fight for better working conditions and opportunities for their very survival. 

From the top-down perspective, the state can take initiatives and recalibrate its current policies. For example, the jeepney modernization program is inhumane because of the non-consultative steps toward the phaseout of traditional jeepneys. A shift in policy may include full subsidies in the repair of traditional jeepneys, and ensuring that carbon emission tests are done regularly, drivers’ competence are monitored, and opportunities are provided for drivers to be compensated. As well, the state should boost the local market by choosing local firms to collaborate with. 

Consequently, a proper balance between state regulation and market control should be achieved. 

Consider this: Car and motorcycle ownership has no limitation per household. If a family has the financial capability, it can purchase more vehicles for each member. This example alone upholds the persistent social class divide—where automobiles that mostly carry one or two persons  dominate the road vis-à-vis commuters who are packed into PUVs that take up only a small portion of that road. 

Additionally, the decentralization of LGUs can be an opportunity for the state and its agencies to collaborate and form joint initiatives on public works management projects aimed at the creation of sustainable and smart walkways and pedestrian crossings, among others. 

One project that can serve as a starting point is the Pasig River Esplanade—a 25-kilometer walkway designed for cycling, walking, strolling, and other recreational activities for pedestrians to enjoy. At least 15 government agencies are collaborating on this project. Hence, humanizing our transport system is not a long shot. Revitalizing cities, and pathways, and reconstructing the metropolitan ethos toward sustainability and collective development should be taken into account. 

With the two-pronged approach, humanized communities can become humanized societies. 

Juniesy Estanislao teaches Araling Panlipunan at Barangka National High School in Marikina City. He is studying for a master’s degree in Philippine Studies, major in Development Studies, at the Asian Center, University of the Philippines, Diliman.

Read more: Transport groups ‘will continue to make noise’ vs modernization plan

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When eFrancisco Motor Corp. chair Elmer Francisco rattled off their ejeep’s accessories during a virtual launch on the night of Nov. 30, Bonifacio Day, some viewers gasped in awe.

There’s nothing like it yet on the market. It’s got Wi-Fi, GPS system, CCTV, video and audio system, dashcam, AC. But that’s just the bling. 

The real deal lies under the hood: full-electric powertrain from Tembo e-LV, a global provider of electric utility vehicles. Unlike its aging, diesel-fueled cousin, the ejeep has no emission. It can travel up to 150 km after full charging, rev up to 120 kph, climb slopes at 50 degrees, and load up to 5,000 kg. 

With a gearbox nominal torque of 475 Nm, the ejeep can outmuscle traditional jeepneys even on Kennon Road’s tortuous zigzags. Traditional jeepneys’ torque is only up to 275 Nm. 

“It’s brand-new. No need to change oil after 5 or 10 kilometers. It has no motor oil,” Francisco told the crowd of mostly jeepney drivers, operators and members of transport cooperatives via Zoom. 

Unsurprisingly, a unit comes with a high price tag. 

That night, Francisco, 45, a Wharton-educated entrepreneur who cut his teeth in assembling jeepneys at 14 in the shadow of his father Jorge, made a special announcement: He’s selling a unit at a discounted P985,000 for the first 1,000 buyers.

“Francisco Motor is not selling a jeepney; it’s selling a livelihood,” he told the Zoom viewers, echoing his father’s sales pitch. (Jorge Francisco, together with his brothers Anastacio and Fernando, built Francisco Motor by churning out thousands of vehicles modeled on US military jeeps from 1947 onward.)

Economies of scale 

It’s the cheapest one can get on the market. 

To lower the cost to below P1 million from P3.3 million five years ago, Francisco got rid of extraneous fees—he ditched the idea of a showroom, among others—and transferred operations from Las Piñas to an export processing zone in Camarines Sur that offered tax breaks.

“We’re able to achieve that because of the economies of scale,” he said. “Economies of scale means we’re not going to make 100 jeepneys, or 1,000 jeepneys. We’re going to manufacture hundreds of thousands of jeepneys.”

To replace the 250,000 15-year-old traditional jeepneys plying Philippine roads, Francisco unveiled a plan to manufacture 25,000 ejeeps a year, or a total of 250,000 in 10 years. He plans to roll out 100 units by the second quarter of 2024.

In a sense, he’s offering both the government and the transport sector an eco-friendly solution to the years-long conundrum called the public utility vehicle modernization program (PUVMP). His solution also ensures that the “king of the road” isn’t written off the map, or the road. 

No doubt, Francisco Motor’s ejeep retains the iconic features of its “high-flying cousin”—the hood, headlights, and grill guard—but like a mini-bus, it has more head room.  It can seat 11 passengers on either side but leaves ample space in the middle for at least eight others to stand.    

Charging stations, powered by renewable energy such as wind and solar power, will be set up on the jeepney routes. The cost of charging will be twice as low as the cost of diesel for a 15-km route. But there’s a caveat: Don’t charge a unit at home, it’s going to cost a leg. 

“You’re going to regret it when your Meralco bill comes,” Francisco said.

The company is introducing an ewallet, called eFMC, for passengers to pay for their fare as well as for the jeepney drivers to pay for charging. 

What to do with the dilapidated jeepneys once the modernization is underway?

With some scrubbing and fresh paint, they can be turned into food vans by the government, and parked at tourist destinations or inside airport terminals and seaports, Francisco said. 

37,500 letters of intent 

But has anyone grabbed his offer of a discount?  

Francisco expressed hope that some 37,500 letters of intent he received from consolidated transport cooperatives and single operators in the runup to the virtual launch—including 701 from Lucena City—would translate into purchase orders. 

He acknowledged that only 15% of the jeepney market was “bankable,” or able to buy their own unit, but 85% could not.

Financing concerns were raised during the launch. One operator wondered if Francisco could help them secure bank financing and another asked if the “boundary payment” scheme would be an option given the long queues for bank-loan applications.  

“We want EVs too, but the price looks good, too,” one of them remarked.  

Francisco encouraged them to create an account at https://jeepney.io and earn commission from referring fellow operators to Francisco Motor, and from their “unli-rides” program.   

“If you’re able to refer many, you might get your jeep for free,” he said. 

To operators and drivers fretting about the government deadline to file their petition to consolidate themselves into cooperatives by Dec. 31, Francisco advised that they form one-person corporations.

“There’s now such a thing called sole corporation. Even if you’re just one person, you can form a corporation,’’ he told CoverStory.ph hours before the launch. “If you’re a single operator of one jeepney, you can form a corporation.”

Then you buy your own electric jeep, he added. 

Transport strikes

The past two weeks saw transport groups Manibela and Piston mounting separate transport strikes to protest the Dec. 31 deadline for the franchise consolidation applications under the PUVMP. They have announced plans for more such protest actions.

The goal of consolidation is to enable franchise holders to pool enough resources together to buy modern jeepneys. 

As of Oct. 31, 56.7% of public utility jeepneys and UV Express vans have consolidated to form cooperatives or corporations, according to an Inquirer report. The rest are still resisting the idea of consolidation that requires the surrender of their franchise—in essence, the sole power to run their own business.  

This early, Francisco said, the government should move the deadline and introduce the idea of “milestones” to the cooperatives and operators by way of cajoling them into embracing modernization. 

“That deadline has been moved three times because the government knows it’s impossible for all to consolidate by Dec. 31,” he said. “Surely they’re going to move it again. Why not move it now, in the spirit of Christmas?”

Francisco said that instead of imposing deadlines, the government should initiate ways to help cooperatives, operators and drivers “modernize” their units in batches. 

“If there’s anything that the Maharlika Investment Fund should invest in, it should be PUV modernization,” he said, referring to the controversial sovereign wealth fund established by the government. “It’s nation-building.”

Read more: Needed: a just transition for jeepney drivers and operators

The post Why not electric jeepneys to modernize the ‘kings of the road’? appeared first on CoverStory.

Two transport strikes have been called this year in protest against the government’s so-called public utility vehicle modernization program (PUVMP), which is aimed at replacing aging jeepneys with environment-friendly but much more expensive minibuses.

Following two days of a planned weeklong strike in March, leaders of transport groups Manibela and Piston were called to a meeting with Malacanang officials. 

After the meeting, Manibela chair Mar Valbuena, sitting beside Piston president Mody Floranda, read a statement that his group did not want to obstruct a plan for more comfortable and safe public transportation, but that they hoped it would be done in a humane and reasonable manner, with no one left behind: “Sana lamang gawin ito sa pamamaraang walang mapag-iiwanan, makatao at makatwiran.” (See “Needed: a just transition for jeepney drivers and operators,” CoverStory.ph, March 9, 2023.)

Valbuena added that they would hold President Ferdinand Marcos Jr. to his word that his administration was open to study and revise the implementation of the PUVMP to protect the livelihood of drivers and operators.

It was announced that Mr. Marcos had directed the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to hold consultations with jeepney operators, drivers and commuters.

But it soon appeared that the government had failed to respond to the sector’s concerns because four months later, Manibela called another strike starting on July 24, to coincide with the President’s State of the Nation Address (Sona). 

“Not one of our complaints was addressed,” Valbuena, speaking in Filipino, told CoverStory.ph in an interview on Aug. 1. One concern was the consolidation of the jeepney franchises and another was the expensive “modernized” units that would replace the old jeepneys. 

Manibela and Piston also saw the “loss” of certain traditional jeepney routes due to the LTFRB’s Local Public Transport Route Plan and alleged preferential treatment in awarding routes to corporations or local governments.

The University of the Philippines Transport Group (UPTG), with over 100 members, joined the strike. UPTG spokesperson Nolan Grulla said his group, which is not linked to Manibela or Piston, supported the strike “because we are fighting for the same thing.”

Related story :

Jeepney driver says: Let us run our own show

Jeepney Modernization

The government launched the PUVMP in 2017 with DOTr’s issuance of Department Order (DO) No. 2017-011, or the Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuance.

Under this program, old jeepneys will be replaced with new vehicles that meet the government’s standards on emissions, safety, and accessibility.

According to the DOTr and the LTFRB, the program aims to transform the public transport system into a “more dignified, humane [system] on par with global standards.” 

Aside from standardizing the sizes and specifications of PUVs, the PUVMP specifies the use of brand-new and “environmentally friendly” vehicles powered by electric motors or engines that are Euro IV-compliant or better, to lessen carbon emissions according to the government’s emission standards.

The government requires modernized units to install a GPS navigation system, an automatic fare collection system, speed limiter, on-board camera, dashboard camera, and free access to the internet through Wi-Fi. Some PUVs may install a ramp to assist persons with disabilities and air-conditioning at their own expense.

The physical configuration of the “modern jeepney” would erase all the features of the traditional jeepneys, which were fashioned from surplus US Army jeeps left by the Americans after World War II and which became the chief means of public transportation from Aparri to Jolo. The “king of the road” became a unique and distinctive Filipino icon.

The “modernized” box-like versions are closer in appearance to buses and are larger than the traditional jeepneys; they seat up to 22-30 passengers, more than the usual 16-18. The models proposed in 2023 include higher ceilings and doors on both sides of the vehicle.

Unaffordable

The biggest complaint against these versions is the cost, which ranges from P2.4 million to P2.8 million each, up from the government’s initial estimate of P1.4 million to P1.6 million. In comparison, a brand-new traditional jeepney that can carry 20 passengers made by pioneer manufacturer Sarao Motors Inc. is being sold this month (August) for P1.1 million.

Grulla, 59, who has been plying the route between SM North Edsa and the UP Diliman campus for 28 years, said most operators and drivers could not afford the new units. 

After spending 14 hours on the road, he grosses around P2,300 on a typical day. He deducts P1,000 for fuel and P700 as “boundary” payment to the jeepney’s owner and operator, who happens to be his mother. 

Under the decades-old boundary system, the driver spends for the fuel and pays the operator a fixed fee for driving the jeepney. Any amount earned beyond the boundary is for the driver to keep.

That leaves Grulla with only P500 for one grueling day, much less than the P1,200 he used to make before the Covid-19 pandemic.

According to Grulla, other jeepney drivers on his route pay a boundary of P800-P1,200, depending on the passenger capacity of their units. 

His own daily earnings are all that his family lives on and cannot be relied upon for big expenditures, like his daughter’s recent hysterectomy. His wife requires daily maintenance medicine for diabetes, for which he sometimes seeks donations from his friends and the UP community.

Grulla said the pandemic, during which nearly all public transportation was suspended after a lockdown was imposed starting in March 2020, drastically affected the livelihood of drivers and operators.

He said that when the government allowed public transport operations to resume later in 2020, jeepney owners needed to cough up amounts of up to P80,000 for new batteries and tires, to bring their vehicles back in shape.

Despite the resumption of operations, UP jeepneys carried only a few passengers until early 2023 when the university fully reopened the campus.

The drivers did not make money for two years because of the pandemic and several have died due to illness or old age, Grulla said, adding that some had switched to other sources of livelihood. 

Loan package

To assist drivers and operators in purchasing modern jeepneys, the government prepared a loan package that includes a 5% down payment that carries a 6% interest rate and a seven-year amortization, and an equity subsidy of up to P360,000 per unit. These loans are available from the government-owned Land Bank of the Philippines and Development Bank of the Philippines.

Jeepney operators must surrender their old units for scrapping to avail themselves of the equity subsidy, according to DO No. 2018-016 from the DOTr. The department said state-accredited scrapping companies would buy the old jeepneys at P20,000 to P30,000 per unit.

Operators and drivers who plan to shift to another source of livelihood can avail themselves of an assistance program from the Department of Labor and Employment and Tesda, or the Technical Skills Development Authority, per LTFRB Technical Division chief Joel Bolano. 

The government sees consolidation as the first step in the PUVMP. Operators must group themselves into a single legal entity, a cooperative or corporation, with at least 15 units. Only consolidated entities may take out loans to purchase the modern units. 

Last May, Transportation Secretary Jaime Bautista said consolidation would be more beneficial overall: “There’s right dispatching, there’s right maintenance of the vehicles, there is right operations. The drivers are trained well.” 

Bautista said drivers would earn at least the minimum daily wage instead of following the boundary system, and also receive social security benefits and health insurance. The minimum daily wage in Metro Manila is P610, the highest nationwide.

Since the implementation of the modernization program in 2017, all previously issued five-year franchises were automatically converted to one-year “provisional authority” or PA. This is what is used by traditional jeepney operators who have not yet formed a cooperative or corporation. Operators pay P260 to the LTFRB for a motion for PA extension per unit. The PAs, however, are valid only until Dec. 31, 2023, according to LTFRB Memorandum Circular (MC) 2023-017.

‘Hindi namin kaya’

Consolidation requires a huge capital that, Grulla pointed out, drivers simply cannot afford on their meager earnings: “Hindi namin kaya. Maliit lang ang kita namin.”

LTFRB’s MC No. 2019-06 requires operators to raise at least P20,000 per jeepney as proof of financial capability for “vehicle maintenance, repair, and operation,” or a total of P300,000 before a cooperative can be given a franchise to operate.

Many operators and drivers are worried about the possibility of their units being monopolized, both Grulla and Valbuena said in separate interviews. 

Valbuena said a driver or operator could become a “slave” of the cooperative or cooperation to whom the franchise was given and who holds the papers. “Sunod-sunuran ka na lang dun sa namumuno. Yung kooperatiba at korporasyon kasi hawak na nila yung papel mo.” (See “Jeepney driver says: Let us run our own show,” CoverStory.ph, March 10, 2023.)

Earlier, LTFRB chief Teofilo Guadiz III said during a hearing at the House of Representatives that a jeepney operator who had “the financial capacity” may apply for a franchise as a sole corporation if he did not wish to become part of a cooperative.

The DOTr expects 80-90% of all jeepney drivers and operators to consolidate by the end of 2023. According to data earlier released by the LTFRB, 100,349 out of 158,281 units nationwide, or 63.4%, have consolidated themselves as of December 2022. 

Last March the LTFRB said that 6,814 modern jeepneys were operating around the country. As of May about 1,400 were in the cities of Cebu, Mandaue and Lapu-Lapu, per LTFRB-Central Visayas.

The application for consolidation, which has been extended several times since 2017, is only open until Dec. 31.

Guadiz said in a Senate hearing that traditional jeepneys would not be phased out after the deadline. “We’re trying to help them consolidate, and we will continue to assist them, seeing to it that no one is left behind,” he said. 

‘Pasensya na po’

Manibela’s planned three-day strike that began on Sona Day was cut short as certain parts of the country were hit by Typhoon “Egay.” The group decided not to give commuters the “double” burden of a strike and bad weather.

Valbuena said that several days before the strike, a member of Bautista’s staff tried to arrange a “dialogue” but said this would have to be quick as the transportation secretary had an engagement that same day.

Miffed, Valbuena demanded to know what could be accomplished during a rushed arrangement. He said an exact time should have been given if a real dialogue were to be accomplished. 

He said that after the strike, he constantly sought updates regarding Manibela’s concerns from the LTFRB through a series of messages, but that the response was always an apology and nothing else: “Pasensya na po.”

He wondered if the constant apology was for the DOTr’s “belittling” of their group, and thereafter received no reply. 

Manibela can be expected to continue organizing more transport strikes until its members see concrete action from the government, Valbuena told CoverStory.ph.

“Definitely, we have a lot of plans. We will continue making noise,” he declared. 

Charmaine Estabas and Maryhl Dionamel Donila, third-year journalism students at the College of Mass Communication, University of the Philippines Diliman, are interns at CoverStory.ph.

The post Transport groups ‘will continue to make noise’ vs modernization plan appeared first on CoverStory.

Related: Transport groups ‘will continue to make noise’ vs modernization plan

These are conservative estimates; it can be argued that they can carry more passengers.

If the government can take on the burden of vehicle procurement and financing costs, then it may also enable lower fares that can benefit commuters. It can also speed up the timeline for modernization, enabling our society to reap the benefits of cleaner air and better road safety more quickly.

If the government can provide a large budget to railways, roads and airports, then why can’t we provide a similar outlay to PUJ, which currently carry so much more passengers and have a wider-reaching network?

Let’s help PUJ drivers and operators. We should treat them as partners toward common goals. If the government can provide substantial financial incentives and subsidies to large companies (for example, the energy sector, to become cleaner/modern/renewable), then we should also be able to provide the same level of support to the public transport sector.

If we help them, then ultimately we help commuters and the public in general.

Jedd Ugay is a transport economist and a founding member of AltMobility PH (which advocates making transportation sustainable and inclusive) and Move as One Coalition (which was formed during the early days of the pandemic to promote the interests of commuters and public transport workers).

The post Imagine if gov’t allocates P15B for PUj modernization appeared first on CoverStory.

This, in essence, is jeepney driver Rey Escanilla’s stance on the government’s fresh push to modernize the Philippines’ iconic “king of the road” that moved thousands of drivers to declare a weeklong strike from March 6, until Malacañang quickly intervened with a promise to review the program. 

The government’s Public Utility Vehicle Modernization Program, crafted in 2017, entails the replacement of diesel-fueled jeepneys that are 15 years old with newer, cleaner minibuses, and the consolidation of operators and drivers into cooperatives. 

Operators have to cough up P2.8 million to comply with the requirements—P300,000 paid-up capital and P2.5 million for a new unit. They must have a fleet of 15 jeepneys to start a cooperative. The government is offering a subsidy of 5.7% of each vehicle’s cost.

As good as new   

Escanilla, 54, who has been plying the Tandang Sora-Quezon City Hall route for 30 years, said operators could undertake their own modernization by buying, say, a new Sarao or Francisco Motors jeepney fitted with a surplus engine worth P500,000, with a bank loan. 

Related: Transport groups ‘will continue to make noise’ vs modernization plan

“That’s as good as a new jeepney,” he said.

Escanilla spoke with CoverStory.ph in an empty jeepney parked at a station near the Tandang Sora public market in Quezon City on Wednesday, the day transport groups ended their strike after a dialogue with Palace officials on Tuesday night.

He is a member of an association of drivers plying the same route, and was serving as the day’s dispatcher, ticking off the names of the arriving and departing drivers and their jeepneys’ license plates. 

In his case, Escanilla said, he could hack an arrangement with his jeepney operator (his sister-in-law) to take out a loan from a local bank to buy a new jeepney. He said he could gradually pay off the loan with his daily remittance of a quota fee through the so-called boundary system.   

“Yes, let’s modernize, but let’s do it individually. I’ll buy the new unit, manage and maintain it, and pay off the loan,” he said. “The boundary will be mine, and I can bring the jeepney home.” 

In this way, one can keep track of the daily earnings and adjust the quota fee accordingly, he said, adding that this could be the way forward for all parties.

On Mr. Marcos’ directive, agency officials promised during Tuesday’s dialogue to review the 2017 Omnibus Franchising Guidelines, which serves as the framework of the modernization program.  

Officials of the Land Transportation Franchising and Regulatory Board have aired willingness to discuss with transport groups ways of improving the program, but stuck to the declared Dec. 31 deadline for the phaseout of older vehicles.

‘It sounds unfair’

Escanilla’s beef with the modernization program is the formation of a cooperative that will supersede the current system, in which an individual holds the franchise to operate one or more jeepneys and employs drivers to ply a certain route. 

In the end, the cooperative, or the people running it, will not only control operations but also hold the power of the purse, Escanilla said.   

“It’s difficult to join a coop because in the first place the jeepney will be in their name. All the jeepney’s income will go to the coop. Only after all the expenses have been deducted will you be paid. It sounds unfair. This puts the operator at a losing proposition,” he said.  

He wondered whether the cooperative could really make the short 3.5-kilometer Tandang Sora-Quezon City Hall route profitable, with a maximum 80 jeepneys operating, and pay each driver a reasonable amount after a day’s work. 

But his and his colleagues’ main opposition has to do with the prospect of operators and drivers surrendering their franchise in favor of the cooperative, Escanilla said 

“If the coop acquires our line, we will lose our franchise. That’s why we don’t want to join the coop,” he said. Then he declared: “I might as well go back to being a family driver. I will answer to only one boss.” 

‘Simple arithmetic’

Escanilla, who raised his three children aged 31, 18 and 11 by dint of his work as a jeepney driver, said the cooperative system would eat hugely into the daily income that operators and drivers are earning at present. 

Operators and drivers earn a daily net income of P700 and P500, respectively, or P21,000 and P15,000 a month. Compare that with, for instance, a cooperative earning a net income of P100,000 a month, and each of its 15 members getting only P6,666, Escanilla said. 

“Simple arithmetic will show you the big difference,” he said. 

Besides, organizing operators and drivers into a cooperative is challenging work, according to Escanilla. 

He cited the case of an operator who owns a fleet of 15 jeepneys: The operator formed a cooperative months ago, registered it with the Securities and Exchange Commission, and applied for a bank loan to purchase 15 new minibuses worth P2.6 million each. The bank denied the application after computing that the operator would be unable to pay the loan with his gross earnings from the short Tandang Sora-Quezon City Hall route.   

Escanilla also said he saw something sinister in the push to form cooperatives. He pronounced it profit-driven, more than anything else.

“There’s money in the coop,” he said. “There’s someone behind it who wants to control the transport industry in Metro Manila … It’s the coop that should go. If there’s anything that they should stop, it’s the coop.”

The post Jeepney driver says: Let us run our own show appeared first on CoverStory.

Manibela chair Mar Valbuena said the protesters were banking on President Ferdinand Marcos Jr.’s directive to concerned agencies to fully review the jeepney modernization program alongside dialogue and consultation with drivers and operators. Valbuena said another protest action would be considered if the review process fails to meet earnest expectations.

This piece, written before the strike was ended, examines the reasons behind the resistance and offers solutions to protect both transport workers and the environment.   

For the first time since the Covid-19 pandemic, a tigil-pasada has been launched to call for the scrapping of the public utility vehicle (PUV) modernization program. 

The mere threat of the jeepney strike led the government to move the deadline for the consolidation of jeepneys into corporations or cooperatives to the end of December. How the latest phase of a long-running struggle over the fate of the iconic Filipino jeepney ends is being settled on the streets, not at a negotiating table.

Protesting jeepney drivers and operators oppose what they believe is a phaseout. The government argues that modernization is necessary to solve public transportation woes and mitigate climate change.

Modernization of public transport is rationalized as a step towards climate mitigation and formalization of the industry. The aim is to have formalized and quality public transport characterized by fleet renewal, higher-capacity vehicles, more operational efficiency and improved service. 

Another key objective is decreasing the greenhouse gas emissions (GHG) of public transport, lessening rapid motorization, and limiting the shift to car usage. The strategic vision is full decarbonization through the electrification of public transport. As part of the Philippine Nationally Appropriate Mitigation Action, railways are to be developed but road transport reform is needed as short- to medium-term mitigation.

Exact number unknown

The exact number of public utility jeepneys (PUJs) nationwide is unknown; estimates vary from 180,000 to 250,000. In Metro Manila, around 50,000—or more, given the prevalence of colorum units—are operating on more than 700 routes. Whatever the number, there is no doubt that the livelihood of hundreds of thousands of Filipinos is at stake in the phaseout of traditional jeepneys.

Studies show that in Metro Manila, around 80% of operators own just one PUJ. The average operator owns 1.3 vehicles and only 2% own more than five units. This fragmentation is a symptom of the informality of the sector. Jeepney operators are part of the self-employed poor and often are drivers themselves. Operators may employ drivers under the boundary system. 

Both jeepney operators and drivers are informal workers. Still, they are required in the modernization program to shoulder the burden of the transition. This is a key issue of the controversy. 

Of the P2 million or more price of the modern jeepney, the government will only provide a subsidy of P160,000. A modern jeep is required to have GPS, WiFi, EPS and cameras. The cost would be prohibitive for an operator who earns a boundary of P700 per day, or a driver whose income is P1,000 for more than eight hours of work per day. 

Moreover, the fleet requirement of 15 units per operator is steep. Then there are overhead expenses, such as formal organization as cooperative, fleet management, and salaried workers.

Related: Jeepney driver says: Let us run our own show

Scapegoat 

The modernization program as conceived should cover all public transport but in practice has targeted jeepneys—an apparently easy scapegoat because of problems in the sector. 

PUJs are frequently blamed for road congestion. Yet these make 80% of all trips in Metro Manila but occupy only 17% of the road space. Due to cheap fares, PUJs carry 40% of commuter traffic, equivalent to 40 million person-trips per day. 

Despite the reputation of jeepneys and buses as smoke-belchers, they are more efficient in terms of carrying capacity and thus lead to a reduction in traffic, fuel cost, GHG emission and air pollution, according to the International Labor Organization (ILO) Regional Office for Asia and the Pacific.

Of the total GHG emissions for transport, jeepneys generated only 15% in 2015. 

Private vehicles outnumber PUVs by 25-1. PUJs comprise only 2% of all registered vehicles: 50,000 of 2.5 million vehicles in Metro Manila, and 300,000 of 12.75 million vehicles nationwide. 

It does not make sense to single out jeepneys among the different PUVs, and certainly not without regulating private-car ownership.

Pandemic as opportunity

A series of tigil-pasada has occurred over the years since PUV modernization was first proposed more than a decade ago. 

In June 2017, a three-year transition for all PUVs—not just PUJs—was provided for in the modernization program. Yet then President Rodrigo Duterte wanted all traditional jeepneys phased out by the end of 2017. A nationwide strike once more proved successful in pushing back this plan.

The pandemic presented the government with the opportunity to enforce the modernization program without opposition from jeepney drivers and operators. In one fell swoop, PUJs were banned from plying the roads along with other modes of public transport. That jeepneys had been singled out was eventually exposed when restrictions were relaxed and modes of public transport were allowed back except for PUJs.

The declaration of the strict lockdown, or enhanced community quarantine, in Metro Manila on March 16, 2020, put 120,000 PUVs out of commission, including some 50,000 PUJs, according to one estimate. 

After two and a half months, on June 1, 2020, the shift to the more relaxed general community quarantine allowed a limited number of PUVs—such as city buses, point-to-point buses, taxis, the Transport Network Vehicle Service, and shuttles—to operate at 50% capacity.

Finally, on June 22, 2020, PUJs complying with the PUV modernization rules were permitted to run. By July 3, 2020, 6,002 traditional PUJs were authorized to operate.  But by Aug. 4, 2020, with the imposition of a stricter modified enhanced community quarantine, only 968 PUJs had been allowed back. 

In sum, the conservative estimate is that P2 billion was lost as income for PUJ drivers at the height of the pandemic ban on traditional jeepneys.

Jobs and environment

In a sense, the modernization program is a case study of the jobs and environment conundrum. Still, it is not a choice between employment and the environment, but protecting both at the same time. The labor movement’s framework of just transition serves precisely to bridge these concerns into a unified position that advances both workers’ welfare and environmental protection. 

Combining traditional advocacies with new imperatives, the ILO argued in 2015 that a process of social dialogue and an outcome of decent work should animate the just transition to a low-carbon future. The jeepney modernization program must be reformed and informed by the principles of just transition towards the aim of a public transport system that is safe, efficient and convenient, and protects the environment and promotes decent work.

As the crucial first step, the government must stop imposing its deadlines and design for modernization that is skewed towards corporatization. Instead, it must engage in social dialogue with jeepney associations and consider the demands of drivers and operators. There must be active listening and good-faith negotiations with jeepney associations, as well as commuter advocates.

Among these key demands is lengthening the period for the consolidation of jeepneys into cooperatives. Aside from the overhead costs of fleet consolidation, there is a steep learning curve for jeepney associations to transform into a cooperative. Capacity-building and organizational development are necessary requisites.

The state must shoulder its fair share of the costs of modern jeeps. The original measly subsidy of P80,000 has been increased to P160,000. But jeepney groups insist on a subsidy of P500,000 at the very least, if not half of the total cost.

Social protection must be extended to those who cannot transition to modern jeepneys or who opt out of the sector. Drivers and operators begging for alms during the pandemic lockdowns should not happen again.

Small price to pay

All of these just-transition interventions are costly. But generous government subsidy and support is a small price to pay if modernization is genuinely aimed at mitigating climate change and traffic congestion, which benefits all Filipinos.

Finally, service contracting must be institutionalized as a mechanism to formalize the public transport sector and its workforce. As implemented, service contracting has morphed into financial assistance to drivers and free rides for the public. Turned on its head, service contracting unfairly competes with unenrolled units. 

Instead of temporary ayuda, service contracting should be the new normal in public transport. The local government or a national agency contracts the modern PUJs to service a route, and collects the fare from passengers who use automated payment cards. In this way, service contracting is sustainable.

Service contracts of jeepney cooperatives must be long-term—five years, for example—so that investments are incentivized. Such a scheme would be akin to how local governments regulate and run public markets as a public enterprise. 

Workers in a modernized jeepney sector are guaranteed wages and benefits without the pressure to compete for passengers, as happens under the boundary system. 

Service contracting is the future of mass public transport: Workers are in formal employment status, commuters enjoy comfort, and operators are guaranteed an income in return for a public service.

Benjamin B. Velasco is assistant professor at the School of Labor and Industrial Relations (Solair), University of the Philippines Diliman, and co-convenor of the Alternative Development Program, UP Center for Integrative and Development Studies (UP CIDS AltDev). —Ed.

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