Extend the consolidation deadline by one year not one month—workers’ group

 

The group Partido Manggagawa (PM) called on the government to extend the deadline for consolidation of jeepneys by one year instead of one month as both the government and operators are not yet prepared. Traditional jeepneys with individual franchises have been allowed to continue operating in routes with less than 60% consolidation according to a memo circular from the Land Transportation Franchising and Regulatory Board (LTFRB).

 

Moreover, the group supported the call of Senator Koko Pimentel about transparency in the supply of imported minibuses. PM also demanded that locally-made modern jeepneys be prioritized to reduce costs and generate jobs. “Kailangan pa bang i-memorize yan, dun tayo sa mura at gawang Pinoy,” averred Rene Magtubo, PM national chair.

 

“The government should make the new year happy for jeepney operators and drivers. President Bong Bong Marcos, Jr. can still choose not to be the Grinch that stole their livelihoods. Some 140,000 stand to lose their source of living by February 1, 2024,” stated Magtubo. The figure is based on one operator and one driver for the estimated 70,000 jeepneys which have not consolidated.

The group argued that the one-month delay in the implementation of the consolidation exposes that the government is not ready for the consequences of the jeepney modernization plan. “The government is not willing to admit the reality but it is aware that the public transport system will fail if the hard deadline for consolidation was enforced last January 1. In fact, not only do jeepney operators and drivers stand to lose their means of livelihood but commuters stand to lose their means of transportation,” Magtubo insisted.

 

He added that “The bitter truth is that the government is not ready to implement the phase of jeepney consolidation and the next period of the shift to modernization. Why impose a hard deadline on jeepney operators and drivers when transportation officials cannot even provide hard data on the level of consolidation? In fact, transport officials also cannot give the exact number of LGU’s which already have Local Public Transport Route Plans which is a crucial component of the scheme along with consolidation.”

 

PM reminded the government that it has subscribed to the International Labour Organization’s principle of just transition. “Under just transition, affected workers and communities must be better not worse off as a result of the changes necessitated by climate mitigation and adaptation. But the rushed enforcement of jeepney consolidation which will lead to job losses for drivers and a broken transport system for commuters clearly violate the principle of just transition,” Magtubo explained. 

Press Release

January 4, 2024

Workers in Cebu demand jeepney franchise extension, P150 wage hike in year-end rally

 

In a year-end action today, a delegation of workers and students rallied at the SSS Building along Osmena Boulevard in Cebu City to demand a one-year extension of individual jeepney franchises extension and the passage of the bill for a P150 wage hike.

 

“At the stroke of midnight today, 148,000 will lose their livelihoods. This is conservatively estimated as one operator and one driver for the 74,000 jeepneys units which have not been consolidated either into cooperatives or corporations, according to the Land Transportation and Franchising and Regulatory Board. This is a significant number, comprising an additional 7% to the 2,090,000 officially unemployed Filipinos as of October 2023,” stated Dennis Derige, Partido Manggagawa (PM)-Cebu spokesperson.

 

Speakers at the rally included the president of the labor union at Lami Foods and a leader of the Guadalupe Women’s Collective. Members of the Cebu chapters of PM and SENTRO joined the picket.

 

Derige explained that “In 14 out of 17 regions, minimum wages were increased by PhP 30 to Php 40 in the second half of this year, bringing them to a high of Php 610 in Metro Manila to a low of PhP 368 in Zamboanga Peninsula. However, the equivalent real wages remain depressed. The PhP 33 hike in Central Visayas raised nominal wage to PhP 468 but the equivalent real wage is only PhP 397. That is, PhP 468 in 2023 can only buy the equivalent of PhP 397 in 2018, or a gap of PhP 71.”

 

He added that “The difference between nominal and real wages is a result of inflation over the years: wage hikes have not kept up with the rise in prices and so workers’ purchasing power has been depleted. The nominal versus real wage gap ranges from PhP 63 in Zamboanga Peninsula to PhP 108 in Central Luzon. Thus the necessity for Congress to plug the gap by enacting the bill for a PhP 150 salary increase.”

 

PM is calling for a just transition for jeepney operators and drivers in the implementation of the modernization program.

 

“The government claimed that 200,000 new jobs were created as a result of investment pledges accruing from the President’s trips abroad. Assuming this is true—the administration still needs to explain how they guessed these figures—it is almost matched by the number of traditional jeepney operators and drivers who will lose their livelihood as a result of the cancellation of their individual franchises. The President does not need a 58% hike in his travel budget to PhP 1.4 billion to generate new jobs, he just needs to extend the individual franchises so that existing livelihoods are preserved,” Derige insisted.

 

Photos and a video of the rally can be accessed here: https://www.facebook.com/partidomanggagawa/posts/pfbid0T7NQBtzk5mcHnHjCwrdawUnmXS7V9vvZgTco5wBqWuPPcznf2djmJS1trumeNfm9l and https://www.facebook.com/partidomanggagawa/videos/1567012827390462 

Press Release

December 31, 2023

The reality of jeepney livelihood loss and the myth of new jobs created

 

In a year end statement, Malacanang avers that 200,000 new jobs were created as a result of investment pledges accruing from President Bong Bong Marcos’ trips abroad. Assuming this is true—Malacanang needs to explain how they guessed these figures—this is almost matched by the number of traditional jeepney operators and drivers who will lose their livelihood as a result of the cancellation of their individual franchises. The President does not need a 58% hike in his travel budget to PhP 1.4 billion to generate new jobs, he just needs to extend the individual franchises so that existing livelihoods are preserved.

 

At the stroke of midnight on December 31, 148,000 will lose their livelihoods. This is conservatively estimated as one operator and one driver for the 74,000 jeepneys units which have not been consolidated either into cooperatives or corporations, according to the Land Transportation and Franchising Board. This is a significant number, comprising an additional 7% to the 2,090,000 officially unemployed Filipinos as of October 2023.

 

The current administration is just implementing a business-as-usual and hands-off approach to employment: let the private sector, whether local or foreign, direct economic development. In place for 50 years or so, this broken system has led us to double-digit unemployment plus underemployment and permanent overseas migration.

 

It is high time to contemplate another and better way: an industrial and agricultural policy that focuses on job creation. The state—not the oligarchs—must direct economic development similar to the East Asian model. This should be at the top of the wish list for 2024.

 

While unemployment in October has gone down to 4.2%, underemployment is more than double at 11.7%. The underemployed are those who want more hours of work, presumably because they do not earn enough. This is a result of the very broad definition of an employed person—somebody who has worked for at least one hour in the previous week! No wonder there is very low official unemployment given that very loose meaning.

 

Another telling statistic that reveals the extent of the problem of lack of quality jobs is the high rate of migration. The latest figures from the Philippine Statistics Authority show that almost two million Filipinos worked abroad annually or some 5,000 OFWs were deployed daily. This sums up to about 2.6% of the total population that is over 15 years old. In other words, the unemployment rate would go up by more than half—at the very least—to 6.8% if Filipinos did not leave for gainful employment abroad.

Press Statement

December 28, 2023

Give jeepney operators and drivers a holiday gift: Extend the individual franchise by a year

 

We ask President Bong Bong Marcos, Jr to be nice not naughty. The government should extend the individual franchise of traditional jeepneys by another year as a holiday gift.

The impending revocation of individual franchises by January 1, 2024 threatens the livelihoods of tens of thousands of operators and drivers. Let us not deprive hardworking Filipinos of their means of livelihood as we are all facing economic difficulties with rising prices of basic goods, especially rice, and the harsh impacts of climate change like El Nino.

 

Partido Manggagawa stands in solidarity with our fellow jeepney operators and drivers in their struggle. While strikes do disrupt our daily lives, it is a small sacrifice for the preservation of affordable fares and the continued livelihood of our fellow jeepney operators and drivers.

 

If the outcome of consolidation and modernization is the displacement of informal traditional jeepneys with modern jeepneys under corporate management, this will result in higher fares, exacerbating the hardships of Filipinos amidst inflation.

 

Let us remember how water and electricity rates skyrocketed after privatization and corporations took control of public utilities. The same will happen if corporations take over the routes and franchises on the roads.

 

There is no doubt that the current PUV modernization will lead to a widespread phaseout. The price of modern jeeps exceeds 2 million pesos, making it unaffordable for struggling operators, especially when the promised government subsidy is only 160,000 pesos.

 

While traditional jeepneys should transition to reduce pollution, it bears emphasizing that private vehicles have significantly higher carbon emissions. The transition should result in a better life for jeepney operators and drivers, rather than unemployment. Jeepney cooperatives are a viable alternative to corporations, but they require sufficient time and support. Negotiations should listen to the pleas of jeepney operators and drivers—a just transition amid climate change adaptation.

 

However, such negotiations for a just transition may not happen because the government insists on proceeding with the PUV modernization while pushing the consolidation deadline. Therefore, it is right to oppose the government's stubbornness with the jeepney strike. It will not be a happy new year for jeepney operators and drivers.

December 18, 2023