PAL calls union’s second notice of strike ‘mere strategy’

Saturday, 06 November 2010 10:30 Recto Mercene / Reporter
Business Mirror

THE nation’s flag-carrier, the Philippine Airlines (PAL), considers the second Notice of Strike (NOS) filed by the PAL Employees Association (Palea) on Friday as nothing but “a union strategy” to delay the implementation of PAL’s spin-off program that had already been recognized by the Department of Labor and Employment (DOLE) as a valid and legal exercise of management prerogative.
PAL spokesman Cielo Villaluna said the airline’s legal department will be responding to Palea’s allegations aired in the NOS in the proper legal forum.

“There is no reason for our passengers to be alarmed. A strike is not likely to happen any time soon as the DOLE views PAL’s continued operations as imbued with national interest,” she said.
This developed as PAL was swamped with separation-benefit requests from workers affected by the spin-off of three non-core units, following its announcement early last week of getting the Labor Department’s (Dole) nod, allowing the lay-off of 2,600 workers.

Last Wednesday, the flag carrier said that it will abide by the Dole’s decision, recognizing the PAL management’s prerogative to restructure its operations, a move that will cost the flag carrier an estimated P2.5-billion.

During a press briefing, PAL president and COO Jaime J. Bautista said the planned spin-off of PAL’s In-Flight Catering, Airport Services and Call Center Reservations was originally estimated to cost about P2 billion under the original DOLE decision.

However, last week’s ruling of labor Secretary Rosalinda Baldoz upped the figure by more than P400 million due to enhanced separation benefits and other modifications in the financial and non-cash awards.

In the wake of Pal’s announcement, its Human Resources Department (HRD) reported that a number of PAL staff belonging to Palea have been discretely calling or e-mailing HRD’s Employee Benefits and Services division to ask for an exact computation of their total separation pay based on the increased benefits package contained in DOLE’s on Oct. 29 decision.

According to Jose S.L. Uybarreta, PAL’s vice president for human resources, its staff have been working overtime computing the separation packages that were revealed during the press conference on Nov. 3.

Bautista announced that Palea members to be affected by the ruling may get an average of P1 million as part of their severance package.

Villaluna added that management finds no basis for the reasons cited by Palea in their strike notice.  “We categorically deny ‘directly negotiating’ with union members, as claimed by Palea, inasmuch as management regularly conducts consultative talks only with Palea officials and not with the members.”
PAL cannot also be accused of terminating Palea members. The DOLE Order will become final and executory on Nov. 9 or 10 days after it was received by both parties on Oct. 29.

“Management is still conducting preparatory works, including seeking financing for the P2.5-billion severance package, before implementing the spin off,” she added.

PAL believes Palea is using the NOS to thwart implementation of the spin-off program and deny its members a financial windfall in separation benefits. By delaying the implementation of the spin off, processing and grant of the separation pay and other benefits in time for the holidays may have to be discontinued.

Palea filed an NOS on Jan. 28, 2010 when it first learned of the spin-off program. On April 23, 2010, DOLE assumed jurisdiction over the dispute and issued an order on Oct. 29, 2010, upholding legality of the spin off.