PAL postpones outsourcing while DoLE resolves labor dispute

By Paolo Montecillo
Philippine Daily Inquirer
First Posted 17:48:00 05/24/2010

MANILA, Philippines -- The Lucio Tan-led Philippine Airlines (PAL) has postponed a plan to outsource about 3,000 jobs by the end of the month amid the government’s moves to resolve issues between the company and labor groups.

In an internal memorandum, PAL assistant vice-president for industrial relations Remegio Siapno said that they have decided to wait for the Department of Labor and Employment’s (DoLE) resolution of the dispute between the airline management and the PAL Employees’ Association (PALEA).
“We shall wait for the decision of the Secretary of Labor and Employment,” PAL said.

Last month, the labor department assumed jurisdiction over the labor row, which has stemmed from a plan by management to outsource non-core services such as in-flight catering and aircraft maintenance to outside entities.

The outsourcing, which would affect around 3,000 of the airline’s 7,500 employees, was supposed to take effect on June 1.

“Please take note that the Dole Secretary’s assumption of jurisdiction on the planned spin-off/outsourcing suspends the effects of the termination pending resolution of the labor dispute by the Dole,” the inter-office document, obtained by the Inquirer, said.

“In other words, the planned spin-off/outsource shall not take effect as scheduled on May 31,” the memo said.

In the meantime, employees who have received the termination letters shall continue to report for work and PAL shall continue to admit the workers, according to PAL.