Fund service contracting along with pantawid pasada--labor group

 

The labor group Partido Manggagawa (PM) asserted that the government should provide funding for service contracting of jeepneys aside from the pantawid pasada program. The budget for pantawid pasada or fuel subsidies for jeepney drivers was raised to P5 billion in the 2023 national budget but only P1.285 billion was set aside for “libreng sakay” or service contracting of buses and jeepneys. However, news reports state that the P1.285 billion may all be used to fund “libreng sakay” in the EDSA busway.

 

“The better formula is public funding of both fuel subsidies and service contracting for jeepneys. Higher fuel prices are not the only problem of jeepney drivers and operators. Just as bad is the uncertainty brought by the public utility vehicle modernization program of the government. Service contracting will allow jeepney cooperatives who undertook the difficult transition to survive and hopefully thrive,” explained Rene Magtubo, PM national chair and a Marikina city councilor.

 

Magtubo also stated that no funds for the public utility vehicle modernization program has been set aside for this year. This means that no funds are allotted for the P 160,000 state subsidy for operators of traditional jeeps to transition to modern jeeps. Jeepney organizations are calling for the subsidy to be raised to P 500,000 since the cheapest modern jeep now costs P 2 million.

 

Under the service contracting scheme implemented in late 2020, jeepney operators are paid by the government to ply their routes and commuters get to ride for free. This is the same scheme applied in the EDSA busway. Service contracting of both buses and jeepneys was allotted P 5.5 billion under the Bayanihan 2 and then another P 3 billion was budgeted in 2021.

 

The group Move As One Coalition, of which PM is a member, is campaigning for service contracting to shift from being a form of pandemic assistance to being the better normal of public transportation. The group assert that service contracting benefits all actors: commuters through a safe and convenient transport system; jeepney drivers who will gain status as employees of jeepney cooperatives and thus enjoy the rights and benefits of formal workers; and jeepney operators organized in cooperatives who will have guaranteed source of income from service contracts of several years in duration.

January 23, 2023

Partido Manggagawa

Workers welcome return of libreng sakay but oppose planned EDSA busway privatization

Photo from Inquirer

The labor group Partido Manggagawa (PM) welcomed the return of the “libreng sakay” program of the government but expressed opposition to the planned privatization of the EDSA bus carousel.

 “Free rides on EDSA is good news for workers and commuters. But privatizing the EDSA carousel will mean higher fares without better service once implemented. We should have learned our lessons from the epic fail of electricity and water privatization. Electricity rates in the country are the highest in Asia and water concessionaires cannot even provide 24/7 service,” stated Rene Magtubo, PM national chair.

The labor leader said workers won’t accept the template of outright privatization as a cure to mismanagement, corruption, and bad governance by those in power. He also countered reports that DOTR’s proposal to privatize the Edsa busway has the support of trade unions.

Magtubo added that “The labor movement’s stand is that privatization is not a panacea to our public transportation problems, and we don’t subscribe to the idea that a privatized transport system is a global standard. Mass transport systems in many economies remain publicly run and efficiently managed.”

PM said that the free ride was beneficial to the working people in terms of saved income and travel time. “Transforming the system into a cooperative-run busway may create an alternative economy, as well as synergy to both the coop workers and the commuting public instead of the typical ‘seller-buyer’ relationship under the privately-run utilities that we had over the past several decades,” Magtubo insisted.

Likewise, Magtubo stressed that the government must retain control of international airports, and may opt to consider other models like cooperatives for the operation of the EDSA busway carousel.

“There are many examples of successful public transportation systems and airports around the world that are owned and controlled by the state, such as those in Japan, Switzerland, Germany, Singapore, and Canada. Even the US hasn’t embraced privatization for running its 5,000 public airports, while our neighbor Hong Kong maintains the world’s best in mass transport system. These systems and airports provide affordable and efficient transportation options for the public, while also serving as a vital source of public income and employment,” Magtubo explained.

PM urged the government to listen to the concerns of the people and to prioritize the needs of the public over private interests.

“We stand with the working class and the people in calling for an efficient and equitable transportation system that serves the needs of all Filipinos. What the country needs is a strong, accountable, comprehensive, responsive, effective, and democratic public services,” Magtubo concluded.

13 January 2023
Partido Manggagawa