The Philippine Online Chronicles

Employees of the country’s flag carrier are preparing for a nationwide labor strike to protest Malacanang’s decision upholding the outsourcing program by the Philippine Airlines (PAL) management that will displace more than 2,600 regular employees from the airlines’ core departments.

According to the Philippine Airlines Employees’ Association (PALEA), the Aquino administration, represented by Executive Secretary Pacquito Ochoa Jr., conspired with business tycoon Lucio Tan in facilitating the legalization of labor contractualization, particularly the outsourcing program in PAL.

PALEA president Gerry Rivera said the conspiracy was evident when PAL executives broke the news to the media even before an official announcement was made.

Last Friday, PAL said in a statement that it welcomed the decision released by the Office of Executive Secretary upholding the previous ruling of Department of Labor and Employment (DOLE) approving the controversial spin-off plan.

The outsourcing at PAL will cause the layoff of some 2,600 regular employees and their eventual shift to contractual employment to third party service providers. Among those affected are employees from the company’s airport ground services, online reservation and in-flight catering services. Other departments are also expected to undergo outsourcing.

Aside from the DOLE-approved compensation package for affected employees worth P2.5 billion, Malacañang also required an additional P50,000 gratuity pay per affected ground crew. Each of the employees who will be retrenched will receive the following:

• Separation pay equivalent to 1.25 month’s salary for every year of service;
• Additional gratuity of P100,000 per affected employee (higher by P50,000 per Malacanang order);
• 100% commutation to cash of unused vacation leave and sick leave balances;
• 1-year extension of the medical and hospitalization benefits;
• Trip pass benefits depending on the number of years of service.

PALEA expressed frustration with Malacanang’s decision on the labor case. Malacanang assumed jurisdiction over the labor dispute last December. The union demanded for a new collective bargaining agreement (CBA) with the management but PAL repeatedly refused to negotiate with the employees’ union.

Labor group Kilusang Mayo Uno said Malacanang’s assumption of jurisdiction order was only issued to prevent a workers’ strike during PAL’s peak season last December, curtail the workers’ right to hold a strike, and satisfy PAL owner Lucio Tan’s greed for ever-bigger profits.

Nationwide strike looms

PAL President and COO Jaime Bautista said in the statement, "Our hearts go out to the employees who will be affected by the restructuring move.”

In a voting held last week, Rivera said 95 percent of PALEA members agreed to launch a labor strike. This was higher than the 86 percent who voted ‘yes in the strike vote last December.

The ban on a strike at PAL will be lifted on April 1, seven days after PALEA notified the labor department of the results of the strike vote.

PALEA called on its 3,500 members to prepare for the first nationwide strike since the 1998 work stoppage at the airline company.

Business as usual

But PAL said assured its passengers and customers that contingency measures are in place to keep its airplanes flying in case members of PALEA stage a strike.

PAL spokesperson Cielo Villaluna said the strike planned by PALEA will be declared illegal. “Flights will continue to be operated according to published schedules while all ticket offices and other sales and airport facilities in Metro Manila, the provinces and stations abroad will maintain regular business operations.” "Our interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out," Villaluna added.

PAL said that the strike, if declared illegal by DOLE, could lead to the forfeiture of striking workers' benefits including those ordered by the Office of the President.