Shifting to Cooperativism and the Behavioral Challenges of Jeepney Modernization in the Philippines

The phaseout of traditional jeepneys has faced multiple delays and was thus postponed again and again. The most recent postponement has set the next deadline for April 30, 2024, with the Department of Transportation firmly committed to enforcing this date. But why the resistance?

In general, jeepney drivers and operators resisted the modernization program primarily because of cost concerns (modern jeepneys cost between PhP1.6 Million to PhP 3 Million), the lack of support from the government especially considering the economic downturn caused by COVID-19 pandemic, and the mandate that the drivers and operators must consolidate in order to operate. Reports say that only 56.75% were able to consolidate primarily because this requirement demands a level of organization and coordination that might be beyond the capabilities or resources of many jeepney drivers.

Understanding the Shift to Cooperativism

Traditionally, jeepney drivers have operated independently, enjoying autonomy over their routes and business decisions. The modernization program, however, promotes cooperatives where operators must collaborate, share profits, and make joint decisions. This cooperative model aims to streamline operations, reduce costs, and improve service reliability—but adapting to this model requires a significant cultural shift.

The change is not merely operational but deeply behavioral. For many operators, the idea of merging resources with other drivers and losing some individual autonomy is daunting. The success of this shift hinges on their ability to adapt to a system that prioritizes community benefit over individual gain.

Behavioral Challenges in the Transition

The transition to cooperativism confronts several behavioral challenges:

  1. Resistance to Change: Many jeepney operators are entrenched in their ways and skeptical of the cooperative model. Overcoming this inertia requires changing deeply ingrained habits and perceptions about business and community.
  2. Lack of Trust: Building trust among operators who are used to competing rather than cooperating is a formidable task. Trust is fundamental in a cooperative, where financial and operational decisions are made collectively. A number of drivers and operators, for instance, claim that only those in power will benefit particularly those in the DoTr who have preferred modern jeepney suppliers. This, though, is being debunked by the department.
  3. Educational Gaps: A significant barrier is the lack of understanding about how cooperatives work and their potential benefits. Education and clear communication are crucial to bridging this gap.
  4. Fear of Economic Insecurity: Operators are concerned about the economic implications of shifting to a new system, especially one that requires initial investment in modern vehicles and possibly sharing of revenue in ways they are not used to.

Facilitating Behavioral Change

To address these challenges, several strategies can be employed:

  1. Robust Education and Outreach Programs: These programs should focus on the benefits of cooperatives, how they operate, and success stories from other sectors or countries. Understanding the model can alleviate fears and build support for the transition.
  2. Training and Capacity Building: Offering training in cooperative management, financial literacy, and conflict resolution can equip operators with the skills needed for this new way of working.
  3. Incentives and Support Structures: Financial incentives, such as subsidies or low-interest loans for new vehicles, can help ease the economic burden. Ongoing technical support can also reassure operators as they navigate the new system.
  4. Updated database on drivers and operators. While the government claims to provide subsidies to drivers and operators (PhP160,000 per jeepney unit), low interest loans and livelihood funds, among others, complaints abound that these do not reach the appropriate beneficiaries primarily because of the lack of updated database on drivers and operators. The fuel subsidy programs, for instance, reach only the pocket of operators and not the drivers. It is essential, therefore, to develop and maintain an accurate and regularly updated database. This will ensure that all support measures, including financial aids and technical assistance, are effectively distributed to those who truly need them, thereby enhancing the overall efficacy of the modernization efforts.
  5. Community Building Activities: Facilitating interactions among operators through workshops and meetings can help build a sense of community and shared purpose, which is essential for cooperative success.

Conclusion

The shift to cooperativism in the Philippine jeepney sector represents a revolutionary change in how public transportation is managed and operated. While the road ahead is challenging due to the deep-seated behavioral adjustments required, with the right support and strategies, this transition can lead to a more sustainable and community-oriented public transport system in the Philippines.

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