Public Transport Operators Withdraw $9.5 Million Lawsuit Against Ministry
Translated & summarized from Calcalist by baba
Fifteen Israeli public transport companies withdrew a $9.5 million lawsuit against the Ministry of Transport after the ministry announced stricter enforcement and canceled the use of subcontractors. The companies had sued over fines deducted for service issues.
The story in 5 lines · by baba
- Transport companies withdrew a $9.5 million lawsuit against the Ministry.
- The ministry will increase enforcement against service violations.
- Use of subcontractors by transport operators will be canceled.
- Operators blamed subcontractors for service deficiencies.
- The ministry prioritizes service reliability and passenger rights.
Fifteen public transport companies have withdrawn a NIS 34.7 million (approximately $9.5 million) lawsuit against the Ministry of Transport, which demanded reimbursement for fines deducted from payments due to service deficiencies. The Public Transport Authority had refused the operators' demands and decided to tighten enforcement procedures, including canceling routes operated by subcontractors.
The operators decided to withdraw the suit after receiving a letter stating the Authority would soon launch intensified enforcement operations. These operations will focus on violations such as employing drivers through subcontractors, skipping bus stops, failing to collect fares, and reckless driving, which were the basis for the original fines.
To counter the operators' defense that subcontractors were responsible for the violations, the Authority's director, Idan Moalem, announced that as of October 4, all approvals for using subcontractors on regular service routes will be canceled. Previously, these approvals were intended for exceptional circumstances like peak hours or holidays but were frequently used by companies to avoid penalties, blaming subcontractors for infractions.
Moalem stated that operators will now need to apply for separate, temporary approvals for specific justified cases, which will be reviewed by a dedicated team. He asserted that the operators' attempt to intimidate the Authority through legal action had failed, emphasizing that service reliability and passenger rights are non-negotiable. The Authority vows to continue uncompromising enforcement and oversight to ensure citizens receive reliable and safe service.