Bus and transport companies protest decision to end diesel subsidy, threaten to strike

Unions representing public bus owners and heavy transport companies are threatening to strike unless President Daniel Noboa revokes his decision to end the diesel fuel subsidy. The threat of strikes and protests was also issued by workers’ unions and indigenous organizations.

Bus owners in Cuenca say they are weighing their options for reacting to the diesel price increase and could suspend service.

On Saturday, Quito bus companies announced they would suspend service beginning Monday morning but called off the strike following meetings with Transportation Ministry officials. “We will maintain service to the public pending satisfactory outcomes with the government,” the public transport chamber said. “If our demands are not met in the coming days we will suspend service.”

Bus and transport representatives throughout the country claim the government’s plan to compensate owners for loses is “confusing and inadequate,” and complain the plan to end the subsidy was not made in “open and transparent” public debates.

“The decision was made improperly and came as a complete surprise to the companies that provide local and long-distance service to the people of the country,” said Juan Abril of the National Chamber of Public Transport. “We are in consultation with our members and will make decisions based on discussions Monday and Tuesday with the Ministry of Transportation.”

Abril added that local transport chambers will make their own decisions and that some service suspensions could begin as early as Monday.

The Cuenca Chamber of Transport said it is “analyzing the options” but will not call a general strike until it talks with national and local authorities. “We are already a system at risk due to increased operational costs and inadequate fare revenue and an increase in fuel costs will force many of our members out of business,” the chamber said Sunday in a statement.

As with the Quito chamber, Cuenca bus owners say they are unclear about the compensation the government says it will pay to cover losses. On Friday, the Transportation Ministry said bus owners and transport carriers would receive $400 and $1,000 per unit. “There has been no communication about how the amounts will be determined and how they will be paid,” said Cuenca bus owner Calvin Rodriguez. “We are already paying the new price for fuel but are not receiving the compensation they promised.”

The United Workers’ Front (FUT) and the Confederation of Indigenous Nationalities (Conaie) said they would announce protest plans Monday.

According to the Transporation Ministry, about 425,000 of the country’s 3.2 million registered vehicles use diesel fuel.