Title
Conversion of Tricycle Associations to Cooperatives
Law
Memorandum Order No. 116
Decision Date
Sep 15, 2003
Memorandum Order No. 116 encourages the conversion of Tricycle Operators and Drivers Associations (TODAs) into transport service cooperatives to support the livelihood of tricycle workers and ensure compliance with the Philippine Clean Air Act, with the Department of Transportation and Communications leading the conversion efforts and collaboration from the private sector.

Law Summary

Impact of the Philippine Clean Air Act (R.A. 8749) on the Tricycle Sector

  • The Clean Air Act affects the tricycle sector significantly.
  • Operators and drivers fear losing their livelihood due to environmental regulations.

Calls for Government Assistance and Cooperative Establishment

  • A rally of TODAs in January 2003 sought government help to establish cooperatives.
  • Establishing cooperatives includes setting up gasoline stations and other support mechanisms.

Conversion to Transport Service Cooperatives for Government Program Eligibility

  • Tricycle operations need to be converted into transport cooperatives to access government programs.
  • Such programs aim primarily at aiding poor and marginalized sectors.

Benefits of Conversion to Cooperatives

  • Conversion promotes self-reliance among operators and drivers.
  • It harnesses collective power to achieve economic growth, development, and social justice.

Mandate of the Office of Transportation Cooperatives (OTC)

  • OTC, under the Department of Transportation and Communications (DOTC), promotes development of transport cooperatives.
  • This mandate is based on Executive Order No. 898 (1983).
  • The goal is to improve socio-economic conditions of transport workers, especially drivers.

Role of the Department of Interior and Local Government (DILG)

  • DILG issued Memorandum Circular No. 2002-35 to local governments.
  • It promotes projects and conversion initiatives like Paradahan, Pook Sakayan, and KPPS.

Directive to DOTC and OTC for Conversion Efforts (Section 1)

  • DOTC through OTC is directed to intensify voluntary conversion of tricycle associations into cooperatives.
  • Coordination is required with DILG through the Bureau of Local Government Development.
  • Conversion efforts to be integrated into regular plans and programs of the agencies.

Authority to Request Assistance from Other Government Agencies (Section 2)

  • DOTC, via OTC, can request help from any government department, bureau, or office.
  • This aims to achieve the objectives of the conversion order.

Encouragement of Private Sector Collaboration (Section 3)

  • Private sector entities like the National Union of Transportation Cooperatives and National Federation of Tricycle Operators and Drivers Associations are encouraged to collaborate.

Immediate Effectivity of the Memorandum Order (Section 4)

  • The Memorandum Order is effective immediately upon issuance.

Legal and Institutional Framework

  • The order is issued under the authority vested in the President by law.
  • It exemplifies government policy promoting the socio-economic upliftment of tricycle operators through cooperative development.

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