Phillips says fare hike must be twinned with minimum wage increase

Opposition Spokesperson on Transport Mikael Phillips says the bus and taxi fare increases for private operators, announced by the Government last night, is a knee-jerk reaction to the mounting disgruntlement in the transport sector and could not have come at a worse time.

READ: Fares to increase come Monday

Phillips is proposing that the adjustment be twinned with a minimum wage increase, which has been pending since 2020. 

In a statement today, Phillips said the 15% increase does not appear to be cost-based or resulted from any dialogue with players in the industry, noting that they are already rejecting the offer.

Furthermore, despite persistent commuter and regulatory complaints of poor service, it contains no commitment to improving service levels in return for the fare adjustment, the opposition transport spokesperson stated.

Phillip is arguing that the number was plucked from thin air as a politically acceptable increase without reference to the soaring input costs over the period since the last adjustment in August 2013.

In addition, the suggested increase was not benchmarked against any affordability test, given that the minimum wages have not been increased since August 1, 2018, more than three years ago, he added.

Phillips said the increase should be subjected to proper due diligence and further review of the effects on both the hard-pressed commuters and transport investors.

He said further that it is unconscionable that the Government is imposing the fare increase before implementing recommendations from the Minimum Wage Commission, which have been languishing on the Cabinet desk since January 2020.

“Affordability must be considered as it is not merely a 15% increase, but 15% per journey which could translate into an increase of over $500 a week for the average minimum wage earner,” he said.

Phillips is arguing that the Government's management of fare adjustments in the transport sector has been disastrous in the past five years, with fuel prices alone increasing by 40% this calendar year.

According to him, the way this increase was introduced is not likely to solve any of the issues brought to public attention over the past year.

He said freezing fares charged by the state-owned Jamaica Urban Transit Company (JUTC) was the right thing to do, considering the deteriorating service levels to the point where the management has admitted it could not service peak demand during the curfew.

Phillips is contending that the differentiated fares will put rural commuters at a serious disadvantage as the Government will issue further subsidies to urban commuters.

Meanwhile, the opposition spokesman said the Transport Minister needs to clarify the fares charged by the over 400 JUTC sub-franchise holders, that currently provide a more significant percentage of seats for commuters in the Kingston Metropolitan Transport Region.

“If their fares are not frozen, then the government will be overselling the fare freeze,” he said.

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