JOBS ON THE LINE: WVATCCI Fears Job Losses, Economic Fallout if Traditional Jeepneys Return

By Rjay Zuriaga Castor

Allowing unconsolidated traditional jeepneys to legally operate routes currently served by the Western Visayas Alliance of Transport Cooperative and Corporation Inc. (WVATCCI) could lead to major setbacks in local employment and transport investments.

WVATCCI said the plan—floated verbally by Department of Transportation (DOTr) Secretary Vince Dizon—could cause economic and social disruption, especially for the families of more than 2,700 workers currently employed under modernized jeepney cooperatives.

The cooperative has 555 modernized units deployed across eight developmental and 17 rationalized routes under Iloilo City’s local public transport route plan.

“If they allow it, this would already harm the industry. That would already harm the 555 units that are already plying. If the government allows this, it would affect the viability of our earnings,” Perfecto Yap, a member of WVATCCI’s Board of Trustees, told Daily Guardian on Thursday, April 24.

According to Yap, WVATCCI has invested around PHP1.4 billion in the government’s Public Utility Vehicle Modernization Program (PUVMP), resulting in the employment of at least 2,775 individuals in Iloilo City.

He added that another 200 modernized units—costing around PHP1.5 million each—are pending deployment and could generate more than 1,000 new jobs.

WVATCCI submitted a formal position paper to the DOTr on April 23 opposing the proposed return of unconsolidated traditional jeepneys, citing regulatory constraints and long-term economic risks.

Regulatory Conflict

Yap said the proposal conflicts with Iloilo City’s ordinance, which limits the total number of permitted jeepney units to 1,732 across all city routes.

“The ordinance is very specific. It was approved and confirmed by DOTr through the Land Transportation Franchising and Regulatory Board. There was a memorandum circular specifying the number of units per route,” he said.

He noted that adding new routes to accommodate unconsolidated jeepneys would be legally and logistically unfeasible.

“Creating a developmental route takes years. It’s not something that can be done overnight to appease one sector,” he stressed, citing the review process required every six months for new routes and every three years for existing ones.

Yap also expressed concern about the continued operations of unconsolidated traditional jeepneys, calling them a risk to public safety and comfort.

“Unconsolidated units are still plying actually. The safety, the security, and the comfort of the riding public are already being sacrificed,” he said.

Yap emphasized that the DOTr should prioritize the greater public interest and that allowing traditional jeepneys undermines the viability of modernization investments.

“There is always resistance to change, but it should be tempered by the benefits of economic development,” he said.

“With all those figures—income, investment, employment generation—the economy of Iloilo will be negatively affected,” he added.

Dizon assured the jeepney group PISTON that mechanisms would soon be finalized to allow operators who missed the April 2024 consolidation deadline to return to the roads with valid franchises.

The DOTr secretary also emphasized that those who failed to consolidate will still be allowed to operate without undergoing the stringent “eye of the needle” franchise renewal process.

This commitment came after protests and dialogues with transport groups demanding the restoration of five-year franchise validity instead of short-term provisional authorities, which they said create instability for drivers and operators.