By Cathy C. Yamsuan, Paolo Montecillo, Nikko Dizon
Philippine Daily Inquirer
First Posted 00:38:00 08/04/2010
MANILA, Philippines—Malacañang has shot down a proposal for a government takeover of Philippine Airlines at this time, saying a solution to the hasty departure of 25 pilots for work abroad that has led to cancellation of flights since Saturday can still be found.
Presidential spokesperson Edwin Lacierda said Malacañang was not considering a takeover given the way things developed as of Tuesday morning.
“Right now, it’s being handled at the Cabinet level. There are three secretaries involved. 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,” Lacierda said at a press briefing.
Earlier reports said Transportation Secretary Jose de Jesus, Justice Secretary Leila de Lima and Labor Secretary Rosalinda Baldoz were involved in the dialogue with PAL management and the pilots.
Lacierda said Palace officials had separate meetings with PAL management, including owner Lucio Tan, and the pilots Monday night.
De Jesus met with five representatives of the resigned pilots late Tuesday. He said the Palace would try to have both parties meet face-to-face on Wednesday.
De Lima said a government takeover was something to be avoided.
“As much as possible, government will avoid that option, which is an extreme last resort. But it doesn’t mean it’s not possible. It actually depends on the next few days as to whether or not the situation will improve or exacerbate as the case may be,” De Lima said.
Senate President Juan Ponce Enrile is against a takeover.
“Government is never good in running private companies. Even if we take over, and if government will take over, who are the pilots who will go there? The Air Force? I don’t think they are rated for those kinds of planes. Not all pilots can fly any aircraft,” Enrile said.
Open to dialogue
Lacierda said the PAL management and the pilots’ representatives had 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.
After meeting with the pilots and PAL management separately, Malacañang has a better understanding of the issues, De Jesus said.
“Our objective is for the management and the pilots to meet and find a resolution that is satisfactory to them both,” the transportation secretary said.
PAL softens stand
PAL on Sunday ordered 13 captains and 12 first officers to return to work or face criminal and administrative charges.
Softening its stand, the flag carrier said it would not file charges against pilots who return to help PAL operations go back to normal.
“The government requested PAL to take back the resigned pilots without sanctions. We agreed,” said Jaime J. Bautista, PAL president and chief operating officer.
Bautista made the statement a day after meeting with De Jesus.
Notice before leaving
At the meeting, the company said pilots, by law, were mandated to give a 180-day notice if they intended to leave the firm.
PAL said most of the pilots who left still owed the company around P1.8 million each for the cost of their training.
Under their contract, pilots need to work for PAL for at least five years to be able to repay these training costs.
Friendlier terms
Bautista said PAL was willing to allow the pilots to repay this amount on friendlier terms.
“All of these issues can be resolved but what’s important to us is that these pilots give us the 180-day notice before leaving the company,” he said.
PAL said the pilots who left the company simply did not show up for work a day after filing their resignation letters. PAL has rejected all the letters.
“We cannot blame our pilots for looking for higher jobs abroad and seizing the opportunity to augment their incomes,” Bautista said in an interview.
“But we are calling on the pilots to respect their contractual obligations to PAL and the passengers. We just want them to show a little professionalism,” he said.
Sister firm
Bautista denied claims by the Airline Pilots Association of the Philippines (Alpap) that the resignations were a result of PAL’s earlier moves to force some pilots to move to sister firm Air Philippines.
Air Philippines is being groomed as a direct competitor to budget carrier Cebu Pacific, which currently dominates the domestic air market.
Alpap said pilots were forced to take lower salaries. Their job security, the group said, was also compromised.
Bautista said PAL had to move the pilots to the smaller airline on a temporary basis as PAL struggled to survive amid last year’s economic crisis.
No labor dispute
He said the pilots involved in the move were still considered PAL employees. Once market conditions improve, he said these pilots would be invited to return to PAL.
“There is no labor dispute as far as the pilots are concerned. Their main reason for leaving is purely on financial or economic reasons,” Bautista said.
Flight attendants
Meanwhile, Bautista called on flight attendants to postpone plans for a work stoppage to protest PAL’s policy of mandating its cabin crew to retire at 40 years old. All other PAL employees are allowed to work for the company until 65.
The flight attendants have criticized PAL for sticking to the “sexist and discriminatory” policy.
“We are trying to resolve all our issues with the employees as soon as possible, Bautista said. “But of course, this problem with pilots are directly affecting our operations. We have to focus on this first,” he said.
He said the company was willing to amend flight attendants’ retirement age to a more “reasonable” age. With a report from Gil Cabacungan Jr.
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