Merely an extension: Unconsolidated

jeepneys can only operate until April 30

JAN 31, 2024 5:45 PM PHT
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Contrary to the call of protesting jeepney drivers and some lawmakers, individual
operators must still either consolidate or lose their right to operate by the April deadline

MANILA, Philippines – Jeepney and UV Express operators who have opted not to consolidate
will only be allowed to ply their routes until April 30, according to a new memorandum
circular by the Land Transportation Franchising and Regulatory Board (LTFRB).

“The authority to operate the units of all unconsolidated individual operators is extended until
30 April 2024, provided the unit is currently registered with the Land Transportation Office
(LTO) and has a valid Personal Passenger Accident Insurance Coverage,” read Memorandum
Circular No. 2024-001, which was released on Wednesday, January 31.

“The said units are allowed to ply the route as PUV only within the same period,” the LTFRB
added.

Unconsolidated individual operators may also still confirm their units with the LTFRB and
register their vehicles with the LTO until April 30.

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groups that oppose industry consolidation were not invited.

At the same time, the deadline for filing an application for consolidation was extended until
April 30.

Operators looking to form new consolidated entities can still do so for routes with no
consolidated entities as of December 31, 2023. They can also form a new cooperative or
corporation if “the number of unconsolidated units in a particular route is at least 40% of the
total number of authorized units,” according to the memo.

Unconsolidated individual operators may also join existing corporations and cooperatives.

The fear remains

However, this means that contrary to the call of protesting jeepney drivers and even some
lawmakers, all public utility vehicle (PUV) operators must still either consolidate or face
losing their right to operate.

Under the government’s PUV Modernization Program, jeepneys and UV Express units
are required to either form or join a cooperative or corporation to continue operating.

These new guidelines follow President Ferdinand Marcos Jr.’s order to move the consolidation
deadline to April 30, which he announced after caving in to pressure from transport groups,
lawmakers, and the public.

But though the government granted one final extension, transportation officials have repeatedly
said that the consolidation requirement remains non-negotiable. Because of this, protesting
unconsolidated operators feel that all they’ve won is a few extra months before an inevitable
“phaseout.”

“Nananatili ‘yung pangamba ng mga drayber at operator na mawawalan sila ng kabuhayan

pagdating ng April 30 (Drivers and operators still fear that they’ll lose their livelihoods come
April 30),” PISTON president Mody Floranda said in a House hearing on Wednesday as he
called for a suspension of the modernization program to give way for a review.

There were also other issues related to the implementation of the program. MANIBELA
chairperson Mar Valbuena alleged during the House hearing that at least 10 unconsolidated
jeepneys were impounded by LTO enforcers. According to Valbuena, the LTO personnel
deemed the vehicles “colorum,” mistakenly claiming that their provisional authorities had
expired after the December 31, 2023 deadline to consolidate.

In light of the issues, some lawmakers – including Gabriela Representative Arlene Brosas,
Rizal 3rd District Representative Jose Arturo Garcia Jr., and Kabataan Representative Raoul
Manuel – have suggested scrapping the consolidation requirement, allowing individual
operators to choose whether to consolidate or not.

With the uncertainty, some jeepney operators and drivers have already told Rappler that they
would rather sell their jeepneys for junk than join a cooperative or corporation. – Rappler.com