A call for clearer legislation

 Espresso Mornings

Joe Zaldarriaga

 

On various social media platforms, the issue of discounts for vulnerable groups specifically senior citizens, and persons with disabilities (PWDs) has been a recurring topic of discussion—shedding light on the need for clearer legislation and regulation on its implementation.

    While discounts for these vulnerable groups are mandated by law and should be provided rightfully so, there is a need to iron out gray areas in the implementation of these discounts to ensure that these sectors receive their benefit without disproportionately hurting businesses.

    A surprising and troubling reality that has come into light recently is how transport network vehicle service (TNVS) drivers are forced to bear a significant portion of these discounts, which of course impacts their livelihood. Under the law, senior citizens, PWDs, and students are entitled to a 20 percent discount for transportation.

    In many traditional public transportation settings such as buses and trains, these discounts are fully shouldered by the companies or public utility vehicle operators. However, the situation is far too different for ride-hailing platforms—where companies get a commission from varying fares charged to passengers.

    Compared to the profits made by transport network companies, TNVS drivers are in a largely financially disadvantaged position to absorb the costs of these discounts. This is probably why some decline rides from senior citizens and PWDs—simply because they cannot afford to take the financial hit. Such a practice fosters an environment of discrimination and is just unsustainable for drivers in the ride-hailing industry.

    In essence, the current system favors transport network companies and greatly disadvantages drivers.

    It is easy to pin the blame on transport network companies for passing on these discounts to their drivers instead of shouldering it themselves, but the problem goes beyond the lack of accountability of these companies.

    More than the unfair practice being implemented by these companies, the broader problem rests on the lack of a clear regulatory framework that details the process of implementation of these discounts—from who should bear the cost down to the validation of IDs.

    As the service provider platforms, transport network companies bear a greater responsibility for these mandated discounts. Various corrective measures can play out for this such as fully passing the discount to the transport network companies to ensure that drivers receive their full fare or creating a subsidy system for riders for the discount. The bottom line here is drivers, who are in a largely financially disadvantaged position, should not be forced to shoulder the impact of these discounts alone.

    It is in this light that the government should immediately step in to resolve this imbalance by defining clear and fair regulations not only to ensure that those entitled to these discounts receive them but also to protect the industries that provide these from fraud.

    Essential to correcting this imbalance is addressing the issue of access. A validating mechanism should be put in place to ensure that actual senior citizens, PWDs, and students get access to these discounts and those who are abusing the system of these discounts are penalized.

    On the implementation of these discounts, the government must address gray areas in the current legislation with concrete and detailed processes to hold businesses accountable. In the same light, stricter regulatory measures must be implemented to ensure that businesses that should provide these discounts are protected from fraud—a practice that negatively impacts not only the businesses that cover these discounts but also actual PWDs, senior citizens, and students who should be benefitting from these.

    Certain sectors have also called for transport network companies to reimburse retroactively the drivers who shouldered the discounts.

    This needs further consideration because existing laws point to the discount being tied to the transportation service provided by TNVS driver-operators, not by transport network companies. Therefore, compelling these companies to shoulder or reimburse the discount value would necessitate legislative amendments to existing laws.

    In summary, this is an issue of fairness and justice.

    If we truly want to support vulnerable sectors, we must ensure that the system designed to protect them does not end up harming others. Drivers deserve to earn a decent living while passengers deserve to properly receive the discounts they are entitled to under the law.

    It is up to the government to create an enabling regulatory environment for this. Only through well-crafted and detailed policies can we strike a balance between social responsibility and economic sustainability.