LTFRB cancels Claire bus franchise over wildcat strike

MANILA, Philippines –  The Land Transportation Franchising and Regulatory Board (LTFRB) yesterday cancelled a franchise to operate held by singer Claire dela Fuente’s bus firm over a Nov. 15, 2010 strike that stranded thousands of commuters in Metro Manila.

In separate resolutions issued yesterday, the LTFRB also suspended two bus firms and cleared another company. The decisions on the four bus companies belong to the first batch of resolutions issued by the LTFRB over the bus strike. The board has yet to decide on the cases of 70 other bus companies.

The resolutions were unanimously decided upon by LTFRB chairman Nelson Laluces and board members Manuel Iway and Julius Garcia.

Laluces said the LTFRB cancelled the certificate of public conveyance of Philippine Corinthian Liner Corp., whose owners include Dela Fuente, after she supposedly “admitted” during a hearing that the firm’s bus units did not ply their routes on the day of the strike.

Dela Fuente, president of the Integrated Metro Bus Operators Association, refused to answer questions until she contacted the LTFRB.

Iway said Philippine Corinthian “didn’t deny participation in the strike” and even “claimed they had the right to (stage a) strike.”

He said “their defenses centered on procedural issues and violation of due process and they had flimsy arguments.” 

“Public transport is very vital so to (stage a) strike is unlawful. The board hopes to send a strong message to the bus operators that their certificate of public conveyance is a mere privilege granted by the state. The state is not bound by the whims and caprices of the operators,” Iway told The STAR.

Laluces said the franchise of BOVJEN Transport Services Inc., which has 16 buses, was suspended for six months while ES Transport, with eight units, had its franchise suspended for three months.

Iway said the two bus firms submitted documentary evidence that their units plied their routes on Nov. 15, 2010 but these documents were not certified by the Metropolitan Manila Development Authority.

A fourth bus firm, owned by operator Carlito Legaspi, was able to prove that its franchise was under preventive suspension from Nov. 2 to December 2 so its buses could not ply their routes. The LTFRB cleared Legaspi’s firm of charges related to the strike.

Bus firms ask for fare hike

Meanwhile, the Intercity Bus Operators Association (Interboa) filed a petition for fare increase last week, citing a recent increase in toll rates at the South Luzon Expressway, Iway said.

The bus operators’ group asked permission to increase fares from P9 to P11.50 among ordinary buses for the first five kilometers, and from P1.85 to P2.35 for every succeeding kilometer.

As for air-conditioned bus units, the operators have asked to be allowed to charge P15 for the first five kilometers. The current rate is P11. They also want to charge P2.70 for every succeeding kilometer, from the current rate of P2.20.

Iway said aside from Interboa’s petition, the LTFRB also has to decide on another fare hike petition filed by the South Luzon Bus Operators Association.