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Monday, November 8, 2010

Gov’t won’t take over PAL amid pilots’ resignations -- Palace

By Cathy C. Yamsuan
Philippine Daily Inquirer
First Posted 20:38:00 08/03/2010

MANILA, Philippines—Malacañang shot down overtures of a government takeover of the Philippine Airlines on Tuesday, saying it was confident a solution to the hasty departure of 25 pilots to competitors could still be found.

“It's too early to tell,” presidential spokesperson Edwin Lacierda replied to queries of a government takeover during a press briefing on Tuesday.


“We are still at level where the two parties are still discussing. Hopefully, there would be positive developments. We do not want to...anticipate and announce a government takeover. It's not something that we have to discuss (at this point),” Lacierda said in English and Filipino.

Lacierda stressed several times during the news conference that Malacañang has not been considering a government takeover given the way things developed as of Tuesday morning.

“We are not at that point of discussing whether or not the President would step in. Right now, it’s being handled at the Cabinet level. There are three secretaries involved there. So hopefully we’ll be able to come up with a resolution at the level of the Cabinet. Beyond that, we’re not discussing anything about intervention by the President,” he explained.

The President's spokesperson said the PAL management and the pilots' representatives have indicated openness to dialogue.

“They are willing to have a dialogue with each other, with the government in between. That is a good development,” he added.

Earlier, Transportation Secretary Jose de Jesus, Justice Secretary Leila de Lima and Labor Secretary Rosalinda Baldoz reportedly got involved in the dialogue between PAL management and the pilots.

In the meantime, Lacierda said the PAL management has “promised to modify” the flight schedules affected by the exodus.

Lacierda said Palace officials had separate meetings with PAL management and the pilots Monday night.

“In the meeting with PAL management, we asked to be briefed about how the situation developed, how come the pilots' exodus happened? And (PAL officers) laid out their concerns, they laid out their legal position on the matter,” Lacierda said in a press briefing.

“We also talked to the pilots' representatives who told us about their complaints...There would be a dialogue and the government will be a broker,” he added, referring to a 2 p.m. meeting on Tuesday, to be mediated by Transportation Secretary De Jesus.

Lacierda said the PAL's warning to file breach of contract charges against the pilots should they fail to report for work within seven days was raised.

However, he said Malacañang would not want to intervene in this issue.
“The government would leave itself out of it (labas po ang gobyerno diyan),” he said, referring to the plan to file charges against the pilots.

“We are referring here to a contract signed between the pilots and PAL management. The courts will take care of any case arising from this. We understand this does not fall under the jurisdiction of the labor (department) but of a regular court,” he said in Filipino and English.

Lacierda refused to comment on questions about whether PAL management's move to force some pilots to transfer to Air Philippines for lesser pay constituted an unfair labor practice.

“It's not for us to say for now (although) we asked (for) a copy of the contract from PAL management and they graciously gave us one. The Secretary of Justice is looking at it, but at this point, we are just listening (to) the grievances (of) both sides...(An) explanation would be best given by PAL management,” he said.

Lacierda said that during the Monday meeting, the pilots present indicated openness to a dialogue with PAL management.

“In fact, they were waiting and hoping that the government would really help the dialogue. PAL management, as well, was also very open. We sincerely hope that they will be able to come to a resolution on the matter,” the President's spokesperson said.

Lacierda was asked whether PAL chair and chief executive officer owner Lucio Tan participated in the dialogue.

“Mr. Lucio Tan came in past two-thirds of the meeting. He was there just as an observer, he was not actively participating. It was Mr. (Jaime) Bautista (PAL president and chief operating opfficer) who was there. And it was a very friendly discussion,” Lacierda said.

“But it was just merely a briefing about what happened, why the exodus occurred, and what are the events that led to this from the side of management. But other than that, (Tan) was just observing,” he added.

Lacierda noted that during the discussion, PAL management indicated willingness to take back the pilots who had tendered their resignation.

“They (PAL officers) are open to the pilots returning to work without any punitive sanctions,” he said.

“While this thing is ongoing, PAL has already promised to modify their schedule. So the only reason why there was a disruption was the sudden exodus of the pilots. But right now, they’re taking legal measures to make sure that the riding public will not be prejudiced. We don’t know how long this would be. It will be up to the Cabinet officials concerned and the parties involved to resolve it as soon as possible,” Lacierda added.

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