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Legislated wage hike pushed as jeepney fare increase looms

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PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

A LAWMAKER pushed for the immediate passage of a P200 legislated wage hike ahead of the two-peso jeepney fare hike set to take effect as early as April, warning that failure to increase wages alongside rising transport costs will push workers deeper into financial hardship.

In a statement to BusinessWorld, the Trade Union Congress of the Philippines (TUCP) said the looming back-to-back fare hike this April shows Congress cannot delay a P200 minimum wage increase any longer.

“Raising fares without raising wages will crush workers and their families,” TUCP President and House of Representatives Deputy Speaker Raymond Democrito C. Mendoza said.

He added that increased transportation costs will significantly affect minimum wage earners who already struggle to make ends meet.

“If fares go up, wages must go up too. Our workers desperately need higher take-home pay to cover additional transportation costs just to get to work and back home,” he added.

He said that delaying the wage hike until June, when Congress would need to reconcile the House-approved P200 increase with the Senate’s P100 proposal, poses a severe risk to workers.

He also underscored the broader economic benefits of a wage hike, arguing that additional income would not only support workers but also boost local businesses.

The Land Transportation Franchising and Regulatory Board (LTFRB) is expected to decide by April on a P2 provisional fare hike requested by transport groups Pasang Masda, the Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), and the Alliance of Concerned Transport Organizations (ACTO).

Once approved, the minimum fares for traditional jeepneys will increase to P15 from P13 and to P17 from P15 for modern jeepneys.

This coincides with the approved P5 fare increase for Light Rail Transit Line 1 (LRT-1), set to take effect on April 2.

Jeepney operators who modernized their units said they are struggling financially as they are also still paying amortization.

During a hearing at the LTFRB office in Quezon City last week, ALTODAP said their new petition would only be temporary due to the high price of diesel.

The group said they can also lower the fare automatically as they do not want to burden passengers.

Still, LTFRB chief Teofilo E. Guadiz III said the LTFRB board would need to review the petition, especially since jeepney operators already receive fuel subsidies whenever the benchmark Dubai crude price reaches $80 per barrel.