Is there life after 31 December 2023?

Under the Public Utility Vehicle Modernization Program (PUVMP), yesterday was the deadline given
for the holders of single franchises to consolidate under a cooperative or corporation.

Consolidation is argued to give members more leverage to buy modern PUVs, worth P2.8 million in
September 2023. Under this setup, members can apply for loans for the purchase.

Those who failed to consolidate by the end of the year 2023 will have their permits to operate
revoked.

Yet, the PUVMP faces criticism and resistance, particularly because the steep cost of a modern public
utility jeepney (PUJ) puts this beyond the reach of many drivers and operators.

A traditional jeepney costs from P150,000 to P250,000, reported Rappler on Mar. 14, 2023.

Even with a government subsidy to cover the down payment for a bank loan, a loan to cover the
more than P2 million approximate cost of a modern PUJ requires an amortization of P38,000-
P40,000 per month for seven years.

These terms no longer make the acquisition of a modern PUV viable for many traditional jeepney
operators and drivers, according to testimonies for a House hearing made by officials of the
Development Bank of the Philippines and the Landbank of the Philippines, two government financial
institutions issuing loans for the PUVMP.

Being saddled with this debt is inhuman for a jeepney driver who clears less than P500 a day, often
in competition with modern bus-jeepneys (Beeps) and obstructions posed by heavy traffic and
roadwork closures in urban centers.

Commuters posted their support for the traditional jeepney community on social media during the
recent holiday.

Karla, a daily commuter who takes three rides in a one-way route from her residence in Lapu-Lapu
City to her workplace in Cebu City, says that the PUVMP’s implementation of the first-phase
consolidation in January 2024 means the loss of livelihood for thousands of traditional jeepney
drivers and more uncertainties for their families, with many still struggling to recover from the
pandemic lockdowns.
Karla doubts whether the PUVMP can absorb all the displaced drivers of traditional jeepneys and
guarantee them a daily earning of P650, more than the usual take-home earning of a traditional PUJ
driver.

“Unsa na man ilang panginabuhi (what will happen to their livelihood)?” she asks, pointing out that
every person, from the richest to the poorest, requires a means to earn and provide a decent life for
his or her dependents.

From the standpoint of the survival of jeepney drivers and their families, the PUVMP fails to offer
viable alternatives that are not hinged on taking out a multi-million loan or consolidating and losing
their single-proprietorship franchises to cooperatives and corporations.

The Department of Social Welfare and Development announced that displaced drivers and operators
of traditional jeepneys can avail of financial assistance through the Assistance in Crisis Situation
(AICS) program, reported the Philippine News Agency on Dec. 29, 2023.

After assessment by social workers, families affected by the PUVMP can avail themselves of food,
cash aid and other forms of assistance.

However, the AICS is a one-time grant. Traditional jeepney drivers and their families resorted to
living in their PUJs during the pandemic lockdowns because they had no savings to fall back on.
Many members of the informal economy did not receive food and cash subsidies from local
government units during two years of the lockdowns.

Seeking to balance ecological sustainability and economic survival, citizens urge the government to
support operators and drivers of traditional PUJs in upgrading their units to become more fuel-
efficient and environmentally friendly. Upgrading will also be less costly than modernization.

The bottom line is that, for genuine development to take place, all stakeholders, especially the most
affected—traditional jeepney drivers and their families—should benefit from innovations.
AT A GLANCE
 The Jeepney Phase-out is a major overhaul of how PUV franchises
are granted and routesare organized.

 Drivers and operators are asked to form cooperatives or

corporations to share the burden of acquiring, maintaining, and
operating modern jeepneys.

 Single proprietors are no longer allowed as acquiring, driving, and

maintaining a jeepney is too much for one person

 The laptop analogy fails to take into account the cooperative

requirement, the many choices of jeepneys, and the main reasons
for the upgrade: transport efficiency and commuter safety.

Over the course of the Jeepney Phaseout debate, there’s been several
arguments both for and against that have continued to stoke the fires
over whether it should push through or not.
There have been many aired, but there’s one argument that’s frequently
been shared when it comes to the plight of the jeepney drivers and
operators. That argument has been to compare the PUV Modernization
program to an office’s mandate that an employee upgrade their laptop at
their own expense.

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Chances are, you’ve read this argument on social media. In an attempt to

make the entire debate more relatable, a netizen has compared the
jeepney phaseout to a mandatory laptop upgrade. In this analogy, the
government is analogous to an employer, while the employee is
analogous to the jeepney driver or operator, and finally, the laptop serves
as a metaphor for the old jeepneys themselves. It states that the
employer is forcing the employee to upgrade their laptop that they use for
work to a newer and more powerful Apple Macbook, but at their own
expense all in the hopes of presenting a more professional image for the
office. While it’s certainly easy to feel sorry for the employee in this
analogy, the central metaphor fails to take into account many key points
in the overall debate, therefore making it an inadequate analogy. We’ll go
over these points one by one.

Passengers' lives at stake

It’s easy to compare the jeepney to laptop as they’re both tools to

complete a job, however the main reason jeepney drivers and operators
are being made to upgrade is because of the passengers’ safety; not
simply for the company’s image. Unlike an employee and laptop, when a
jeepney driver takes on passengers, those passengers’ lives are in his
hands. As such, it's important to have updated equipment that meets
modern standards.
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Public transport operators’ main responsibility is the lives of their

commuters and the reason there is so much government oversight
regarding their vehicles, fares, operations, and routes is because it’s
important that they can safely transport passengers from one point to
another without incident.

If theses classic jeepneys — with varying sizes, builds, and engines,

questionable reliability, faulty brakes, unsafe rear loading, and sometimes
inoperable lights and indicators — are allowed to continue operate, their
dated design and near lack of safety features puts passengers’ lives at
risk. Not to mention the unreliability of the vehicles themselves could
cause passengers to be late, affecting productivity and, by extension, the
economy. Finally, the old engines used in these vehicles were built before
modern emissions restrictions. Thus they will continue to emit toxic fumes
that may slowly poison the passengers, and any pedestrian on the road.

Not a one-to-one expense

Perhaps another aspect of the PUV Modernization that the analogy fails to
address is the main requirement that jeepney drivers shift from a single
operator / franchise-holder to a cooperative or corporation. It’s not a one-
driver to one-jeepney ratio but rather multiple drivers to multiple
jeepneys. Through this system, the government hopes to bring a larger
group of people to work together to maintain a franchise and route.

With a cooperative or corporation, the tasks of driving, maintaining, and

dispatching a jeepney can be done by several individuals instead of the
single operator / franchise-holder system of the past where the operator
has to juggle all those tasks. With a cooperative that has multiple
jeepneys, several operable jeepneys can be dispatched to a route while
those that need repair can stay behind and be worked on. As such, the
route is still served, income continues to flow, and repairs can be done
immediately instead of put off.

Drivers can share the load as well. Rather than one driver / operator being
behind the wheel for a staggering 12 -16 hours a day, they can be given
shorter shifts to several drivers per jeep of as little as 8 hours each,
allowing drivers to be well rested and alert enough to serve their routes,
without the risk of fatigue that may cause an accident. In addition, each
modern jeepney will be travelling with a passenger officer who will direct
passengers to empty seats, ensure the maximum capacity is not
exceeded, and collect fares. This leaves the driver undisturbed to simply
focus on driving.

Finally, the cost of acquiring and maintaining the modern jeepneys is not
put upon a single driver, but rather all the members of the cooperative,
making it easier to pay for and manage. Acquiring the modern jeepneys
can be shared by all the members of the cooperative, drastically bringing
the cost down and putting the economies of scale into effect, allowing
them to command discounts from vehicle suppliers and friendlier
installment terms since they are buying in bulk. In addition, these
cooperatives can trade-in their jeepneys for further relief from the sticker
price. Banks like Landbank are also offering installment plans
cooperatives can avail of to acquire these modern jeepneys.

There are many cheaper models to choose from

A Class 1 Modern PUV, beside Class 2 Modern PUVs.
Another argument overlooked is the fact that jeepney cooperatives are
not required to get the biggest and best or most expensive model. In fact,
the PUV Modernization has multiple accredited models for cooperatives to
choose from, ranging from the very affordable Class 1 vehicles that range
from to P1.1M to P1.6M to the more expensive Class 2 and Class 3 that
are often cited as the expensive models priced at P1.7M to P2.2M even
though these are best used for longer, more highly populated routes.

Foton's very affordable Class 1 F-11 Modern Jeepney.

Jeepney operators are not required to buy Class 2 or Class 3 vehicles. In
fact, in many routes, a smaller, more affordable Class 1 Modern PUV will
suffice. It’s not like they could be filled to standing room either as strict
maximum capacity rules are enforced.

If it were compared to a mandatory laptop upgrade, naturally, everyone

would want to have a Macbook to work with, however, in truth, most
employees will be fine with just a generic netbook, or middle spec laptop.
The Macbook is not required, it’s just one of the accredited options.

A long overdue requirement

Finally, this is not something sprung on jeepney drivers and operators at

the last minute. The PUV Modernization traces its proposal in 2015 and
first planned implementation as far back as 2017. The government has
been trying to implement it for nearly 7 years now with extension after
extension granted to allow jeepney drivers and operators to make the
shift

Nothing like a laptop upgrade

After all these points, we hope citizens and commuters will see that
comparing the Jeepney Phaseout to a simple laptop upgrade is a poor and
inadequate analogy. There are many aspects of the program that the
analogy glosses over or even fails to take into account entirely. Granted,
the upgrade and shift from single proprietor to cooperative and
purchasing new vehicles is still a major undertaking. However the terms
aren’t as heavily stacked against the jeepney drivers and operators as one
might think.

With these in mind, this is how that analogy should have been written.
And perhaps after reading it, many will see the PUV Modernization
program is not as oppressive as some are making it look like.

Nagbigay ng memo ang office niyo na papalitan na lahat ng PC

niyo ng mas bago. Binigay ang memo noon 2017 pa.
Nagbigay ang office ng listahan ng accredited laptops, at
habang nandoon sa listahan ang Apple MacBook, hindi ito
required.
Kaso hindi ang office magbabayad nito, kundi ang mga
empleyado. Ito ay dahil lahat ng trabaho ay magiging group
project na. Hindi na pwede ang individual work para hindi
mapagod ang mga empleyado.
Inaatasan kayong gumawa ng mga grupo ng empleyado para
mapadali ang group project at pagbili ng bagong laptops. Kahit
gaano kalaki ang grupo, basta ang minimum ay 20 laptops
bawat grupo. Sa bagong grupo, pwede ka pa rin sa client
servicing, or pwede ka magbago ng trabaho bilang
management, dispatcher, accounting, or IT ng grupo. Kailangan
gumawa ng shifts ang mga empleyado para salitan sa client
services. Hindi na pwede magtrabaho sa isang project ng
lampas 12 hours tuloy-tuloy kada araw para hindi ka na
mapagod. At kelangan maraming laptop para kapag nasira ang
isa, may mga papalit naman at tuloy-tuloy ang trabaho. Hindi
kelangan gamitin ang lahat ng laptop saby-sabay.
Ang grupo ang magde-dedesisyon kung alin ang laptop na
bibilhin at papaano babayaran. Sa listahan ng accredited
laptops, marami mapag-pipilian mula murang netbook, or
hanggang mabilis pero mahal na Macbook. Iba-ibang brands pa
ang pwede, tulad ng Sony, Asus, Lenovo, at kung ano pa, hindi
lang Apple. May workload limit din ang mga laptop (depende sa
modelo) para hindi sila mag-hang sa dami ng trabaho o masira.
Pwedeng bilhin ng hulugan ng laptop. Pwede rin i-trade-in ang
lumang laptop o PC para may discount pa. Puwedeng lumapit sa
bangko para mag-installment at may auto-debit pa sa hulugan
mula sa kinita ng laptop. Pwede pa mag-lagay ng advertisement
sa mga laptop para sa karagdagang kita.
Sabi ng office, ginagawa ito hindi para sa image ng kumpanya,
kundi para mas epektibo ang mga operation at project ng
kompanya at hindi ma-perwisyo ang mga kliyente.
Nakiusap ka, sinabi mo di mo kaya magbayad ng ganoon.
Pumayag naman ang kompanya at 6 years na itong na-
 postpone para maghanap ka ng grupo, pero hindi na pwede i-
postpone ulit.
Hindi na ikaw ang nagmamay-ari ng laptop kundi ang grupo na.
Sila na rin magbabayad ng hulugan at maintenance nito. Kung
kelangan mo, ay pwede mo naman hiramin.
Pinagbabawal na ang individual work dahil hindi kaya ng isang
tao ang magbayad, mag-maintain at magpatakbo ng laptop.
Mandatory ang group para mas madali ma-organize ng office
ang mga grupo. Hindi mo na kailangan i-pa-inspect at
iparehistro ang laptop kada taon, kundi ang grupo na.
Yan ang PUV Modernization. Yan ang programa ng gobyerno na
hinanda para mapadali ang trabaho at pag-upgrade ang mga
jeepney drivers, at para mapadali ang buhay ng commuters.

NEWS (PUV PHASE OUT)

MANILA, Philippines — Transportation Secretary Jaime Bautista
has allayed fears of transport workers that traditional jeepney
units will be immediately phased out with the implementation of
the public utility vehicle (PUV) modernization program.
The Department of Transportation said that traditional jeepneys
can still operate and ferry commuters as long as they are “road
worthy” and that the transition to modern jeepney units will take
time.
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“Bakit kinakatakot nila na kailangan mag-operate agad ng
modern jeepney? Hindi naman eh,” Bautista said in a post on
social media on Saturday.
(Why are they afraid that the modern jeepneys will operate
immediately? That’s not the case.)
Bautista likewise explained that rolling out modern jeepneys in
lieu of traditional PUVs would take time.
But transport group Piston is skeptical of the department’s “lip
service.”
Piston’s president Mody Floranda explained that the DOTr must
issue an executive order to make such claims official.
“Iyong sinasabi ni Secretary [Bautista] na hindi naman talaga
totally i-wiwipe out ang ating traditional jeepney basta’t ito’y
compliant, ay maglabas sila ng isang executive order para at
least mayroon kaming panghahawakan,” Floranda told
Inquirer.net.
(If Secretary [Bautista] is saying that they would not totally wipe
out traditional jeepneys as long as they are compliant, then they
should release an executive order so that our sector has
something to hold on to.”
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“Kung sabi lang, at wala namang dokumentong inilalabas, ano

pong panghahawakan ng ating sektor?” Floranda asked on
Sunday.
(If they’re just saying it but not releasing any document, then
what will our sector hold on to?)
Some drivers and individual franchise holders have repeatedly
expressed concern about potential job displacement following the
implementation of the PUV modernization prpgram.
Earlier, Piston and another transport group, Manibela, said that
replacing traditional PUVs with a reduced number of modern
jeepney units might lead to some 86,000 PUV drivers losing their
jobs.
The groups added that reducing the number of PUVs plying major
thoroughfares in Metro Manila will negatively impact commuters,
potentially resulting in a “transport disaster.”
Based on previous statements from the Land Transportation
Franchising and Regulatory Board – an attached agency of the
DOTr – modern jeepney units will be fitted with more
environment-friendly engines, CCTVs, and an automated fare
collection system, among other upgrades.
MANILA, Jan. 3 (Xinhua) -- Jeepney drivers and operators in
the Philippines have vowed to launch more transport strikes
in 2024 even after the deadline to modernize the iconic
passenger vehicles lapsed on the last day of 2023.
"This January 2024, we will continue our strikes to fight for
the rights of jeepney drivers and operators," Mody Floranda,
national president of a jeepney drivers and operators group,
told a local newspaper.
The elongated, flatbed passenger jeepney is the most
popular mode of public transport in the Philippines. These
iconic vehicles have been plying the streets across the
Southeast Asian country since World War II. Government
data showed that around 160,000 transitional jeepneys are
running across the country.
Indeed, the diesel-fueled jeepney has become one of the
most recognizable icons of Filipino pop culture. But critics say
the decade-old vehicle has become a tarnished icon,
symbolizing the country's technological backwardness and
inability to adapt to changing times.
A national plan to remove the jeepneys from the road,
especially from Metro Manila's gridlocked streets, has been
ongoing, stirring a fresh debate on the fate of the iconic
jeepneys chugging along the roads since the 1950s.
As part of the public utility vehicles (PUV) modernization
program, jeepneys older than 10 years were required to be
removed from roads to cut traffic emissions and ease the
worsening traffic congestion gripping the capital.
Jeepney drivers and operators were also required to join
transport cooperatives before Dec. 31, 2023. Otherwise, they
will be no longer allowed to operate.
According to the Department of Transportation, over 70
percent of PUV operators nationwide have committed to the
modernization program. However, the rate is around 40
percent in Metro Manila.
Opposition lawmaker Arlene Brosas, a member of the House
of Representatives, warned that the mandatory franchise
consolidation forces over 60,000 jeepney operators to give up
their franchises and join a few transport cooperatives.
"Drivers and operators are being pressured to join transport
cooperatives or companies, disbanding their current jeepney
associations and putting their livelihoods at risk," Brosas
warned.
Days before the deadline, the government issued new
guidelines permitting unconsolidated PUVs to operate along
specific routes until Jan. 31, to prevent a transportation crisis.
Two days after the consolidation deadline, Jeepneys are still
plying the traffic-choked streets in Metro Manila on Tuesday.
Some jeepney operators and drivers decided to continue to
challenge the plan, saying it is meant to "kill" small transport
operators in the country. Some transport groups took to the
streets to dramatize their protest.
Jeepney drivers and operators even asked the Supreme
Court to intervene to stop the program's implementation.
Floranda said the strikes will persist in 2024 until the
government scraps the modernization program. ■

MANILA, Philippines — Philippine jeepney drivers staged a noisy protest in the

capital Manila on Tuesday over the government's plan to phase out the smoke-
belching vehicles nationwide and replace them with modern mini-buses.
Jeepneys -- first made from leftover US jeeps after World War II -- are a
national symbol in the Philippines, and serve as the backbone of the country's
transport system.
They provide rides for millions of people across the country for as little as 13
pesos (23 cents).
A convoy of jeepneys drove through Manila in opposition to the phase-out
plan, which was launched in 2017 as part of a programme to improve the
country's chaotic public transport system.
It has been repeatedly delayed due to protests and the Covid-19 pandemic.
Jeepney operators were given until the end of 2023 to join a cooperative,
which will have two to three years to replace their fleet with modern vehicles
that are safer and less polluting.
The cooperatives will be able to access bank financing and receive a
government subsidy of between 200,000 and 300,000 pesos per vehicle to
ease the financial burden of the transition, officials have said.
But drivers opposed to the phase-out argue that joining a cooperative and
buying a new vehicle will bury them in debt and they won't be able to earn
enough money to survive.
And they will be required to drive a fixed schedule, rather than the current
system that allows them to work for as long, and often, as they want.
"We are not against modernisation, what we are against is the system. They
made a programme without consulting us," said Emilio Millares, 59, who has
been driving a jeepney for four decades and took part in Tuesday's protest.
"We will continue to fight for these jeepneys and our livelihoods until our last
breath."
Police said about 50 jeepneys were in the Manila convoy. Protests were also
held in other cities.
Restituto Rocafort told AFP on Monday that he had almost paid off his jeepney
and the phase-out plan would "only give me a huge debt".
To meet his contribution requirements to the cooperative, he would need to
earn 7,000 pesos a day, compared to his current daily earnings of 600-700
pesos, Rocafort said.
Nearly 77 percent of registered jeepneys in the country have joined
cooperatives, while 97 percent in Manila have consolidated, the transport
bureau said Monday.
Drivers who missed the December 31 deadline have been given permission to
continue operating until the end of January.
Older drivers like Artemio Cinco fear they will struggle to find employment
after January 31 due to their age.
"I'm losing sleep, especially now that the grace period is ending in a few days,"
Cinco, 55, said Monday.
"I have eight children and many grandchildren. All are dependent on me."