Forced transport consolidation unconstitutional, insists Castro
A CONGRESSMAN asked transportation agencies on Wednesday to consider alternative options for public utility modernization (PUV) operators who cannot consolidate under the government’s transport modernization program, noting that “forced consolidation” is unconstitutional.
“We cannot force franchise consolidation,” Deputy Minority Leader and Party-list Rep. France L. Castro told the House transportation committee. “It is a violation of the Constitution to force a person to join or not to join organizations, cooperatives, or corporations.”
In a Viber message, Ms. Castro noted that forcing PUV operators to consolidate would violate Article 13 of the Constitution.
Rizal Rep. Jose Arturo S. Garcia, Jr. suggested allowing PUV drivers and operators who could apply for an individual loan to purchase modern PUVs.
“Why don’t we give drivers the choice to let them realize that it is difficult to apply for a loan individually, [so they feel the] need to join a cooperative,” Mr. Garcia said, referring to PUV operators who cannot apply for individual loans.
Industry consolidation would help ensure cooperatives or corporations more benefits to their members, according to Transportation Undersecretary Anneli R. Lontoc.
She added that PUV cooperatives or corporations could help in negotiating on the bulk purchase of spare parts and fuel, which would help reduce the cost for drivers and operators.
Consolidated PUV drivers and operators would also be entitled to dividends at the end of the year as well as regular salaries, Ms. Lontoc told congressmen.
Industry consolidation can help address the issue of competition over PUV drivers plying the same routes.
Last month, President Ferdinand R. Marcos, Jr. approved a three-month extension for PUV operators to consolidate, with the new deadline set on April 30 from Jan. 31.
About 76% of PUVs have been consolidated under corporations or cooperatives as of Dec. 31 last year, according to the Land Transportation Franchising and Regulatory Board. — Beatriz Marie D. Cruz