50% taxi fare hike 'illegal'
A rival taxi association has warned that NTTU's actions are provoking disorder and lawlessness in the sector, by ignoring existing regulations and not following the correct procedures.
Members of the Namibia Taxi and Transport Union (NTTU), who plan to impose their union's 50% taxi fare increase announced for September, could have their driver's permits revoked, transport officials have warned.
Despite taxi users and economists expressing concern that the 50% fare hike is uneconomical and no official authorisation for the increase has been given, the NTTU is set to announce the hike at a press conference today.
In a media invitation issued over the weekend, the union said the 50% price hike “will be effective 1 September 2018” and challenged works and transport minister John Mutorwa to “take legal action if the minister feels the NTTU is contravening the law by increasing the fare with 50% instead of 10%.”
The NTTU further said it welcomed the transportation board and “all public transport associations” to legally challenge the 50% increase if they are not happy with it.
The NTTU's mandate to order and enact an increase has been described as illegal by the ministry and the Namibia Bus and Taxi Association (Nabta).
Januarie yesterday shot back, saying the union has the “mandate to increase” taxi fares, because according to him the union “represents drivers in the industry”.
He said further the NTTU does not “have a recognition agreement with anybody who states that we cannot ask for that increment”.
He added the increases in taxi fares in Rundu, implemented last year, and the increase of Windhoek small bus fares, without “any approval or consent from the ministry” did not result in any permits being revoked or any other backlash.
Januarie also said the taxi union does not recognise the current Transportation Act, which defines taxi fare increase procedures.
“So why should we obey a law that we say is unconstitutional?”
Illegal
Damien Mabengano, the deputy director responsible for transportation regulations within the ministry, explained that applications for taxi fare increase can only be approved and endorsed by the transportation board, if the increase is more than 10%.
The NTTU's unilateral decision to increase taxi fares by 50%, without a green light from the transportation board is “illegal if not approved by the board”.
“They don't have the mandate to increase the fares,” he said.
He warned that NTTU members who decide to hike their rates come September, without prior transportation board approval, “are not complying to permit conditions and the board might or may withdraw their permits”.
He said the board has received the application for a 50% increase from the NTTU, in addition to a request for a 20% increase by Nabta, although Nabta yesterday said they are still consulting on the issue.
All increase applications received by the board are first assessed to investigate the “economic effect of the requested increase”, Mabengano said.
“You can't just jump up and say today we increase the fare.”
At issue is the affordability for commuters, and the trick is to balance the needs of the taxi operators, including owners and drivers, and the users of taxis, to ensure the fare hike is favourable to “to all parties”, he added.
He warned that an increase has ripple effects on the cost of living for the poorest of the poor, including students and families who rely heavily on taxis for transport to get to their jobs or obtain an education.
Sowing chaos
Nabta secretary-general Pendapala Nakathingo said the NTTU, under the leadership of Januarie, is deliberately “sowing total chaos” in the transport sector through their unapproved increase.
He warned that Januarie's actions are provoking disorder and lawlessness in the sector by ignoring existing regulations and not following the correct procedures.
He said the NTTU is setting a dangerous and unsustainable precedent, which could lead to other unions following suit and simply implementing much higher fare increases.
“Where will this end?”
Nakathingo said Nabta has to date not agreed on a fare increase proposal to put forward to the transportation board, adding a consultative conference was planned for this week, but was postponed due to the NTTU's announcement.
Nabta has previously supported a call for a 20% increase.
Januarie said he would address the concerns of affordability by commuters at today's press conference.
JANA-MARI SMITH
Despite taxi users and economists expressing concern that the 50% fare hike is uneconomical and no official authorisation for the increase has been given, the NTTU is set to announce the hike at a press conference today.
In a media invitation issued over the weekend, the union said the 50% price hike “will be effective 1 September 2018” and challenged works and transport minister John Mutorwa to “take legal action if the minister feels the NTTU is contravening the law by increasing the fare with 50% instead of 10%.”
The NTTU further said it welcomed the transportation board and “all public transport associations” to legally challenge the 50% increase if they are not happy with it.
The NTTU's mandate to order and enact an increase has been described as illegal by the ministry and the Namibia Bus and Taxi Association (Nabta).
Januarie yesterday shot back, saying the union has the “mandate to increase” taxi fares, because according to him the union “represents drivers in the industry”.
He said further the NTTU does not “have a recognition agreement with anybody who states that we cannot ask for that increment”.
He added the increases in taxi fares in Rundu, implemented last year, and the increase of Windhoek small bus fares, without “any approval or consent from the ministry” did not result in any permits being revoked or any other backlash.
Januarie also said the taxi union does not recognise the current Transportation Act, which defines taxi fare increase procedures.
“So why should we obey a law that we say is unconstitutional?”
Illegal
Damien Mabengano, the deputy director responsible for transportation regulations within the ministry, explained that applications for taxi fare increase can only be approved and endorsed by the transportation board, if the increase is more than 10%.
The NTTU's unilateral decision to increase taxi fares by 50%, without a green light from the transportation board is “illegal if not approved by the board”.
“They don't have the mandate to increase the fares,” he said.
He warned that NTTU members who decide to hike their rates come September, without prior transportation board approval, “are not complying to permit conditions and the board might or may withdraw their permits”.
He said the board has received the application for a 50% increase from the NTTU, in addition to a request for a 20% increase by Nabta, although Nabta yesterday said they are still consulting on the issue.
All increase applications received by the board are first assessed to investigate the “economic effect of the requested increase”, Mabengano said.
“You can't just jump up and say today we increase the fare.”
At issue is the affordability for commuters, and the trick is to balance the needs of the taxi operators, including owners and drivers, and the users of taxis, to ensure the fare hike is favourable to “to all parties”, he added.
He warned that an increase has ripple effects on the cost of living for the poorest of the poor, including students and families who rely heavily on taxis for transport to get to their jobs or obtain an education.
Sowing chaos
Nabta secretary-general Pendapala Nakathingo said the NTTU, under the leadership of Januarie, is deliberately “sowing total chaos” in the transport sector through their unapproved increase.
He warned that Januarie's actions are provoking disorder and lawlessness in the sector by ignoring existing regulations and not following the correct procedures.
He said the NTTU is setting a dangerous and unsustainable precedent, which could lead to other unions following suit and simply implementing much higher fare increases.
“Where will this end?”
Nakathingo said Nabta has to date not agreed on a fare increase proposal to put forward to the transportation board, adding a consultative conference was planned for this week, but was postponed due to the NTTU's announcement.
Nabta has previously supported a call for a 20% increase.
Januarie said he would address the concerns of affordability by commuters at today's press conference.
JANA-MARI SMITH
Comments
Namibian Sun
No comments have been left on this article