University of the Philippines Manila College of Arts and Sciences Department of Social Sciences Padre Faura, Manila Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines An Undergraduate Thesis In Partial Fulfilment of the Requirements for the Degree of Bachelor of Arts in Development Studies Farida Bianca P. Velicaria 2009-29128 Prof. Roland G. Simbulan Thesis Adviser April 2013 University of the Philippines Manila College of Arts and Sciences Department of Social Sciences APPROVAL SHEET In partial fulfillment of the course requirements for the degree of Bachelor of Arts in Development Studies, this undergraduate thesis entitled “Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines,” prepared and submitted by Farida Bianca P. Velicaria, is hereby recommended for approval. __________________________ Professor Roland G. Simbulan Thesis Adviser Department of Social Sciences College of Arts and Sciences, UP Manila This thesis is hereby accepted and approved as partial fulfillment of the requirements for the degree of Bachelor of Arts in Development Studies. __________________________ Professor Carl Marc L. Ramota Chairperson Department of Social Sciences College of Arts and Sciences, UP Manila Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines | 1 Acknowledgement I would like to take this opportunity to thank everyone who has journeyed with me from first year to fourth year. This research serves as a culmination of everything that I have learned in UP. And through this, I come one step closer to my graduation. Thank you to all the bus drivers, and conductors who gave me their precious time despite the little rest that they get. DOLE BWC and NWPC, LTFRB, and KABISIG, thank you for responding to my queries. To Sir Simbulan, thank you for giving me this topic. I hope I was able to effectively show the real conditions PUB drivers’ experience. The plight of the bus drivers was never easy. Their working conditions create an environment vulnerable to accidents, forces them to push themselves to the limit, and the inefficient laws does not give them due protection. To all my blockmates, thank you very much for the wonderful four years we have spent together. To Macky, thank you for all the debates where we always agree to disagree, I don't know how we managed to stay friends despite all the dissenting opinions we have, but all the more, thank you for staying. To Aynne, Kuya Dave, and Ate Chikkadz, Palawan team wouldn’t be complete without you, thank you for one hell of a rollercoaster ride. Because of the practicum, I was able to learn and appreciate things I usually disregard. To Pastelle, thank you for all the flying that we did together. I hope you realize how great you are. To Jen and Bea thank you for always being there to guide me. To Pat and Ariza, thank you for always being so sure of yourselves and being so great. Our relationships have been rough but our friendships have withstood all the troubles. To Vivi and Rayla, thank you for inviting me to your home. I will never forget the adventures we've had. To Hann, thank you for your kindness and the countless stories, you never fail to put on a smile on my face everytime we're together. To Charmee, Ella, Gaye, and Aubrey, for all the times we went home together, you ease the difficulty of going home miles away from our beloved UP. To Arlene, Mommy Joe and Ate Janneth, thank you for being part of our block, it wouldn’t be complete without you. To the Twins, you have a special plave in my heart. To Aldwin, you have matured and changed for the better, I hope you continue growing in the path you have chosen. To Isa, Arbin, Allan and Carmina, thank you for always being so jolly, it’s contagious! To Reggie and Johd, thank you for being how you are. To Regine, thank you for the lessons you've taught me. To Jam, thank you for all your stories most especially for explaining to me the perception of Japanese with regards to shining people. To Erika, thank you for always being online when I need to ask someone about school or when I just want to rant, and for being a reliable groupmate. To Josah, it has always been a laugh trip when you're around. To Mother Heilia, the motherly way you do things makes us all feel loved by you and by God. To my parents, thank you for letting me stay in UP, and for all the trust you have given me. You have always been supportive, I love you very much. To my brothers and sister, thank you for bearing with me. To my highschool, thank you for the training you have given me. I may have not yet fully bloomed, but I’m doing my best to nurture the seed you have planted in me. To Ma’am Joson, thank you for making all my Komunikasyon units fun and worthwhile. To Ma’am Jopson, thank you for making me realize how important social movements are. To Sir Ramota, Doc Ed, Sir Ponsaran, and Sir Mesina, my other professors, thank you for instilling your knowledge to us. To everyone I may not have mentioned here, thank you for making my stay in UP worthwhile. Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines | 2 Table of Contents Approval Sheet 1 Acknowledgement 2 Abstract 5 Chapter 1 Introduction 6 Statement of the Problem 7 Research Objectives 8 Hypothesis 9 Review of Related Literature 9 Methodology and Research Design 18 Population and Sampling 18 Theoretical Framework 20 Conceptual Framework 20 Variables Definitions 21 Instruments and Data Collection 23 Data Analysis 24 Scope and Limitations 25 Significance of the Study 26 Chapter 2 Company History and Profile 28 Philippine Rabbit 28 Pangasinan Five Star 31 Baliwag Transit 31 Victory Liner 32 Chapter 3 Laws Governing the Labor Conditions of PUB Drivers 37 Labor Code 37 Basic Rights of Workers 39 Unfair Labor Practice 40 DOLE Department Order No. 118-12 series of 2012 41 Terms and Conditions 42 Labor Relations 44 Compensation Scheme 44 Two-tiered Wage System 46 House Bill No. 3370 47 Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines | 3 Chapter 4 Background of Bus Transport in the Philippines 49 History of Bus Transport in the Philippines 49 PUB drivers’ working condition situationer before DOLE DO 118-12 51 Chapter 5 Unionism and Organization in Bus Transport 56 Labor Unions 56 State of Unionism in Bus Transport 59 Unionism in the Major Bus Companies 60 Creation of KABISIG 64 Problems in Creating a Union 66 Chapter 6 Presentation of Data and Analysis 68 Sampling 68 Demographics 69 Working Conditions of PUB Drivers 74 Case Number 1 (late payment of wages) 77 Case Number 2 (accident insurance) 81 Case Number 3 (non-remittance of SSS) 84 Case Number 4 (unjust deduction of retirement fee) 85 Labor Unions 86 Case Number 5 (casual and contractual workers) 87 Case Number 6 (yellow union) 88 Enforcement of the DOLE DO 118-12 91 Problems of PUB drivers 93 Chapter 7 Conclusion and Recommendation 95 Conclusion 95 Recommendation 98 Bibliography 100 List of Interviews 103 Appendix NWPC Survey Result 104 Survey Questionnaire 106 Interview Transcriptions 108 Provincial Bus Franchises Plying Metro Manila 129 Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines | 4 Abstract This study focuses on the PUB drivers of major bus companies in the Philippines with liberating theory as its lens. It scrutinized the laws implemented with regard to the labor conditions of PUB drivers. It also analyzed the state of unionism in the bus transport. The labor conditions of PUB drivers go unnoticed to the eyes of the passengers and the general public. Most of the time, they are seen negatively due to the high frequency of their accident involvement. In 2012, a department order from the DOLE was issued to reduce the number of bus accidents and to improve the working conditions of the PUB drivers. At first look, the department order seems to answer for the problems of the PUB drivers, but it actually aggravates it. Almost all the provisions stated in the department order were written in the Labor Code but not implemented by bus operators. They are doing the paper works, but as Atty. Jaime Garcia put it, “submission is one thing, compliance is another thing.” The department order is liberally construed, leaving its interpretation to the hands of the profit driven companies, as opposed to the drivers who want a decent pay for their family. There are a lot of violations committed by the bus operators against the PUB drivers, such as the non-remittance of SSS, Pag-ibig, PhilHealth, and taxes, long hours of work beyond prescribed, and unfair labor practice. Severe labor conditions of PUB drivers are further aggravated by inefficient laws and weak support of the government, as well as the prevalence of yellow unions. Labor Conditions of Bus Drivers in the Major Provincial Bus Companies in the Philippines | 5 Chapter 1 Introduction Transportation is an important part of the lives of the people be it for leisure, business or education. Transportation costs add up or are always a factor in the computation of our expenses. Aside from the economic factor, our time is also at stake when going from one place to another. Every day, billions of people transport to and fro offices, schools, and other places.