TAXI FARE HIKE HIT

Published in the Sun.Star Davao newspaper on December 29, 2010.
(Jade C. Zaldivar of Sun.Star Davao/Sun.Star Cebu/Sunnex)
http://www.sunstar.com.ph/davao/local-news/taxi-fare-hike-hit

DAVAO CITY -- Militant groups slammed the Land Transportation Franchising and Regulatory Board's (LTFRB) decision to increase by P10 the flagdown rate of all taxicabs in the country.

The flagdown rate will be P40 for the first 500 meters starting January 15 and succeeding charges will also go up from P2.50 to P3.50 for every 250 meters or for every two minutes of waiting time.

Bayan Muna vice president for Mindanao Joel Virador on Tuesday said that LTFRB's move is an additional suffering for the riding public.

The LTFRB based its decision on the petition filed last January 22, 2010 by the Philippine National Taxi Operators Association (PNTOA), said Manuel Iway, a member of the LTFRB board.

The decision, however, states that taxi operators need to comply with conditions to charge the increase, which include the use of taxi meters that issue receipts, payment of the P510 filing fee, proper resealing of taxi meters, and at least three uniforms for each driver.

But Anakpawis-Davao spokesperson Franchie Buhayan described the increase as "too much" and "unfair" to the working class, whose petition for a P125 across-the-board wage increase is yet to be acted upon by the government.

Meanwhile, the Davao City Council's committee on energy, transportation, and communication said the increase in taxi fare has an advantage and disadvantage.

Councilor Pilar Braga, the committee chair, said taxi drivers should not choose their passengers and should be required to attend more seminars as some are reckless and arrogant.

In Baguio City, taxi operators only sought a P35 in flagdown rate.

In Cebu City, two labor federations are fighting the order to increase taxi fare by at least 33 percent.

Alliance of Progressive Labor president Jose Tumongha said workers, especially those who work at night, like the thousands of employees in business process outsourcing companies, will suffer the most from the increase.

The Associated Labor Unions also said the federation is dismayed by the approved increase.

The petitioners said since the last taxi fare increase was approved on September 30, 2004, the costs of living, fuel, spare parts, vehicle maintenance, and labor have also increased.

At that time, the flagdown rate went up from P25 to P30. 

*REACTION FOLLOWS*

It is not fair to increase the taxi cab fare. Just like what the Anakpawis – Davao spokesperson described the increase as “too much” and “unfair” not only to that working class but to everyone. I   would also like to consider Franchie Buhayan’s argument about the working class, whose petition for a P125 across – the – board wage increase is yet to be acted upon by the government. I believe that such argument should be done since among the whole population the employees are the ones who usually ride taxi cabs. If the wage increase among the working class is not likely to happen, then I guess it is not right to increase the taxi cab fares just to comply all those requirements demanded by the LTFRB. Also, Alliance of Progressive Labor president Jose Tumongha said workers, especially those who work at night, like the thousands of employees in business process outsourcing companies, will suffer the most from the increase, which is extremely true since there aren’t many jeepney rides during nighttime. How will the working class adjust their finances now that the increase in taxi cab fare is approved?

As a student, I am greatly affected with the increase. I and my friends usually ride the taxi cab to go to malls and other places we want to go. But I guess, I would instead ride the jeepney just to minimize transportation expenses. As a student from an economics class, I believe that increasing the fare would not really answer the charges caused by the necessities. I thought that it would be also difficult to those taxi operators to cope up with their financial budgets. There are certain factors that would cause such difficulties. One is that, many people will choose to ride the jeepney, mainly because it is costly riding a taxi. In this case, taxi drivers will be having a hard time looking for passengers. In relation with economics, the equation for revenue is equal to profit times the quantity demanded. An increase in price leads to a downfall of the quantity demanded. Therefore, an increase in the price causes a decrease in total revenue. So, I believe that it is not proper to raise the taxi cab fare knowing that it is a disadvantage to both taxi operators and to the public.