Councilor Benny Bomogao has criticized the restrictions outlined in the guidelines of the Land Transportation Franchising and Regulatory Board (LTFRB) for filing an application for consolidation which prevented a number of jeepney units in the city under a transport cooperative from consolidating.
During the Baguio City Council’s regular session on May 27, 2024, Bomogao inquired why the application of Mines View Gibraltar Transport Cooperative (MVGTC) had been denied considering that they applied during the extension period.
Elmer Mendoza of the Department of Transportation-Cordillera (DOTr-CAR) explained that, according to LTFRB Memorandum Circular 2024-01 which was issued on January 30, 2024, consolidations are accepted only if the existing consolidation for a route is below 60%. He said the route where MVGTC used to operate had already reached a consolidation rate above 60%, thus the denial.
Mendoza added that the only option for MVGTC is to join existing consolidated operators.
Earlier this year, the city council passed a resolution favorably endorsing the request of MVGTC for consolidation to LTFRB.
Bomogao expressed frustration with the rejection of the consolidation application by the transport group, questioning why additional requirements are being imposed that hinder the approval process. He argued that allowing multiple transport groups to operate on the same route would be advantageous for the public and would enhance the quality and availability of transport services.
“Ideally, the government’s policy should prioritize accommodation. We have this program in place, albeit one that feels mandatory. It’s an imposed program, and those seeking to consolidate should always be welcomed by the LTFRB,” Bomogao stated.
The councilor stressed that an inclusive approach would help the government achieve its goals in Public Utility Vehicle Modernization (PUVM).
He claimed that individuals or groups interested in joining the consolidated cooperative are facing a challenge because they are being asked to pay a high membership fee of up to P300,000.00, causing reluctance among them to join due to financial constraints or other reasons. He asserted that, if possible, these individuals or groups should be allowed to join without facing such high barriers.
According to the records of DOTr-CAR, out of 2,164 recorded jeepney units, 2,070 have been consolidated which accounts for almost 96% consolidation. Ninety-four jeepney units from different routes remain unconsolidated.
Mendoza assured the city council that the 96% consolidation rate is sufficient to serve the public on city routes.
For now, there is still no apprehension of non-consolidated operators. However, Mendoza noted that they are awaiting further guidelines from the Central Office to determine if there will be apprehension in the near future.
Mendoza explained that the DOTr, through LTFRB and in partnership with Technical Education and Skills Development Authority (TESDA), offers the Tsuper Iskolar Program as a social support mechanism. This program has been active since 2020 and has 557 scholars so far. It covers operators and drivers who wish to remain in the PUVM program.
Aside from the Tsuper Iskolar Program, the DOTr, in partnership with the Department of Labor and Employment (DOLE), also offers an entrepreneur program which provides livelihood packages to those displaced from public transportation. The role of the DOTr is to provide the list of beneficiaries while the DOLE processes livelihood packages amounting to a maximum of P30,000.00.
Mendoza said they are coordinating with stakeholders including the city government to ensure that the drivers and operators of these 94 unconsolidated units are accommodated in these support programs.
Councilor Arthur Allad-iw emphasized that the city would like to ensure that adequate support is given to these displaced individuals.
Allad-iw also raised concerns about how the PUVM program forces operators and members to consolidate their individual franchises without their explicit consent. He argued that this raises constitutional questions and mentioned the Bill of Rights and the standards set by the International Labor Organization (ILO) as additional factors to consider.
Mendoza acknowledged these concerns and revealed that there is a pending case with the Supreme Court questioning the guidelines set by the DOTr regarding the PUVM program.
The matter was referred to the city council’s Committee in Public Utilities, Transportation, and Traffic Legislation for further study.**Jordan G. Habbiling
