No strike, but tension builds over delayed taxi fare hike - Gov’t signals possible approval in tranches

The Government has signalled to taxi operators in the Kingston Metropolitan Transport Region (KMTR) that they will receive word on an outstanding 16 per cent fare increase on June 1.

The promise came from Finance and Planning Minister Fayval Williams and Transport Minister Daryl Vaz during a meeting with representatives of taxi associations at the Half-Way Tree Transport Centre in St Andrew on Monday.

Disgruntled taxi operators have been clamouring for the increase, due since April 2024, citing increased costs fuelled by rapidly rising oil prices triggered by the ongoing war in the Middle East.

The KMTR is the designated public transportation zone covering Kingston, St Andrew, as well Portmore and Spanish Town in St Catherine.

On Sunday, a widely circulated voice note claimed that taxi operators in the KMTR would withdraw their services on Monday to protest against the delay in granting the fare hike, resulting in the leadership of the Jamaica Constabulary Force alerting branch, area and divisional commanders to plan for impending protest actions.

However, at Monday’s meeting, representatives of the eight taxi associations operating in the KMTR denied any planned strike action.

In explaining the delay in granting the fare increase, Vaz cited the Government’s cushioning of gas prices, arguing that transport operators also benefit from that cushion. He warned of the ripple effect the increase would cause on other sectors.

“ … We have a pricing mechanism at Petrojam, which has made $4.50 per litre the peak, the ceiling of any weekly price increase. … We are approaching $4 billion of subsidy by virtue of not increasing over $4.50, when the increases could be as much as $12.50 per litre,” said Vaz, who is also the energy minister.

“Again, the decision that we are being guided with is that, to remove the ceiling and make the tiered approach in terms of what international prices are every week would have more damage on the inflation that Minister Williams is trying to keep under control,” Vaz said.

The transport minister insisted the Cabinet is set to act on the vexed matter.

“I am happy to say today that the Cabinet draft submission is going to Minister Williams, and this is totally coincidental. This has nothing to do with the meeting this morning, because there's a process. You don't just do a draft Cabinet submission overnight. It takes weeks from the parent ministry, and then it has to go out for comments and support, especially in this case by the Ministry of Finance.”

Williams acknowledged the delay in granting the fare increase following an agreement for a 35 per cent increase in October 2023 with 19 per cent granted at the time, with a promise of the 16 per cent balance by April of 2024.

According to her, the Government has absorbed $4 billion, representing much of the shock that comes with the rising oil prices, pointing out that the full increase may not be granted at once.

“We are asking for a little bit more time into June, two weeks, to have that discussion, to let us see what is the best figure we can put on the table. We may be asking for it to be done in, you know, in two tranches,” said Williams. “If we increase the transportation sector even more all at once, it's just going to have a ripple effect to the economy, and you yourself are going to see it when you go to the supermarket.”

But Leon Patterson, president of the Independent Route Taxi Association, and Brian Ulett, president of the Duhaney Park Taxi Association, expressed concern that the proposed increases could come in two tranches.

“Well, from the last meeting we had with the minister on March 11, he stated that in June, we did not get a precise date, but he stated that in June we would get word as to when we're going to get the 16 per cent. So today's meeting, I accept this meeting because we got a precise time as to June 1st we would hear something in regard to our 16 per cent increase. The only thing that I did not accept is a proposal that we get it in two tranches, you know, because the 16 per cent is long overdue, inflation has taken away that 16 per cent,” Patterson told The Gleaner.

“We wanted the 16 per cent, but at least we are hearing a date, June 1st, so we can move from there. We take that into consideration (effects of fare increase). … The operators want the increase. But we as the association leaders have to go out there and explain to them why it wouldn't be feasible for them to get the [full] increase right now. You understand me? Because their households are going to be affected tremendously. So if the minister removes the cap, what is going to happen to the greater society at large?” Ulett asked.

karen.madden@gleanerjm.com