PAL-Fasap talks collapse

Wednesday, 18 August 2010 00:02
BusinessMirror

PHILIPPINE Airlines (PAL) said it failed to arrive at a “mutually acceptable solution” to its labor problem involving the Flight Attendants and Stewards Association (Fasap) after a meeting on Tuesday morning.

In a statement, the air carrier said it maintained its P80-million offer to the cabin-crew union, saying the company cannot give more due to its current financial difficulties. Fasap declined the offer.
Fasap withdrew from the negotiations and said it is set to conduct a massive strike within a month after the PAL management refused to address the issue on the retirement age being raised by the association. The two sides have held more than 10 meetings before the National Conciliation and Mediation Board (NCMB) of the Department of Labor and Employment (DOLE).

“Officially, we have withdrawn from the talks because, as of this morning [Tuesday], the management did not want to address the number-one issue on retirement age. We already left because we felt nothing would happen anymore,” Fasap vice president Andy Ortega said partly in Filipino in a phone interview.

He said Fasap officers and members are set to meet this week to decide on when they are going to conduct the strike.

Meanwhile, Malacañang said on Tuesday it does not have to step into the PAL labor row for now, even with the decision of the Fasap to file a notice of strike after talks with PAL management bogged down.

Asked if the development warrants Palace intervention, Secretary Ricky Carandang, head of the Presidential Communications Development and Strategic Planning Office, said in a text message that Labor Secretary Rosalinda Baldoz is “on top” of the situation.

“Secretary Baldoz is on top of it. Right now, it’s being handled on her level. [Transportation] Secretary [Jose] de Jesus is also involved,” Carandang said.

De Jesus said, “The Labor secretary is perfectly capable of handling this labor problem.”
On the planned strike, some PAL workers are worried that if it goes through, the future would be uncertain for them and their children. This was gathered during interviews with the workers, who requested not to be named so that they would not be ostracized by their colleagues.

Some of the rank-and-file workers and cabin crews of PAL appear split in the middle over calls by their respective union leaders to strike in case of a deadlock in their negotiations with the airline management.

The management offer was unaccompanied by nonmonetary benefits because it is insistent on limiting talks to the economic aspect of the collective bargaining agreement (CBA) talks. The present CBA ends this year.

Under the present CBA, all flight attendants hired before November 1996 would be retired once they reach 60 years for men and 55 years for women. Those hired from 1996 and beyond will be retired at age 45 for both men and women. Those hired after November 2000 will all be retired by the age of 40.

PAL wants the early-retirement issue to be discussed during the CBA for 2010 to 2015. It’s not until 2018 when the early-retirement provision will affect any cabin crew.

On the early-retirement age issue, PAL lawyers said the company should not take the blame for a CBA provision that Fasap leaders in the past had approved. Officers of the cabin-crew union signed the CBA containing the provision setting an early retirement age not only once but three times in the past, airline lawyers noted.

“They were not forced. They signed it voluntarily.” ?

However, Ortega explained: “We were forced to sign the 1996 CBA agreement because we have no choice but to sign the agreement, or else our family will get hungry.”

He said they realized that it was a wrong move for them to agree with the issue on forced early retirement, since there are so many PAL employees who are affected.?

On the fears of some union members about the collateral effects of a strike, Jaime Bautista, PAL president and COO, said the Labor department would mediate if negotiations fell through.
The unnamed workers said they represent a large but silent majority who want the labor problems to be resolved peacefully for the sake of their jobs, their families and the interest of the riding public.
Luzviminda (not her real name), a flight attendant for almost three years, said strike threats are sowing panic among travelers.

“I respect our union leaders. I know they have our best interests at heart. However, I’m sure a lot of my coworkers are afraid of what could happen if they make good their threat to strike. What if PAL closes? What will happen to our families and to breadwinners like me?”
Customer service and sales agents share the same concern.

“In our view, the majority do not want a repeat of the 1998 mess that led PAL to shut down. At my age, it will be very difficult to look for a job should the company closes,” said a ramp agent.
He added that both Fasap and PAL Employees Association (Palea) leaders make repeated threats to go on strike but do not file any notice of strike as required by law.

“Their agitation is alarming and worrisome to us workers and even among travelers. Even the leftist activists who are not involved in the issue are weighing in.” ?

Even if the strike does not materialize, he said much damage has already been done since passengers are afraid of booking their flights with PAL, not sure what will happen. “When we fight among ourselves, we make the competition very happy.” ?

But more than losing to the competition, the workers expressed common concern over the possible closing down of PAL.

“We, more than ever, will lose our retirement pay and other benefits,” said a ticket agent.
Meetings are also being held with Palea regarding the ground crew union’s opposition to the airline’s planned spin-off of three noncore units: catering, groundhandling and call-center reservations.
(L. Lectura, R. Mercene, M. Gonzalez, S. Fabunan)