November 10, 2010, 8:41pm
Manila Bulletin
MANILA, Philippines — Accused by its workers of concealing its true financial condition, the Philippine Airlines management vowed on Wednesday to submit all its financial records to the House of Representatives to help it determine the truth behind its decision to lay off at least 2,600 workers.
PAL President and Chief Executive Officer Jaime Bautista told the House Committee on Labor and Employment that the company’s corporate restructuring and spin-off programs are necessary to ensure the flag carrier’s continued survival in a cut-throat airline industry buffeted by massive losses in the last two years.
The committee chaired by Northern Samar Rep. Emil Ong opened on Wednesday an inquiry into the decision of Labor Secretary Rosalinda Baldoz affirming PAL management’s decision to restructure its organization which could result to the termination of some 2,600 regular employees.
The Philippine Airlines Employes Association assailed the decision, even as it belied claims by PAL that it had been losing money.
PALEA President Gerry Rivera insisted that PAL has concealed its true financial position to justify plans to terminate workers and resort to the more economical employment outsourcing.
At one point during the hearing, San Juan Rep. JV Ejercito, author of one of the seven measures proposing the congressional inquiry, accused PAL chairman Lucio Tan of being “anti-labor”.
Congressmen present were taken aback by Ejercito’s name calling antics, saying that it was unfair for the PAL official to be subjected to serious accusations despite his absence from the hearing.
“I think it is unfair for anyone of us to resort to name calling and throw accusations at Mr. Tan who is not here to defend himself,” lamented Quezon City Rep. Vincent Crisologo, who was challenged in the recent congressional race by the billionaire’s daughter, Vivian Tan.
Bautista said PAL has presented the financial records of the firm to Baldoz and will not hesitate to submit the same documents to the House labor panel.
Baldoz told the committee that she sees nothing wrong with her decision to uphold the PAL management’s prerogative to restructure its organization, saying that she remains convinced that it is “based on solid grounds.”
The PAL management said it has provided a generous separation package for the affected workers, adding that it had also been affirmed by the Department of Labor and Employment.
Bautista said the DoLE decision allows PAL to spin-off or sell three of its non-core units such as in-flight catering, airport services and call center reservations and contract the same to third party service providers.
The agency also ruled that the termination of affected employees as a result of the spin-off is in accordance with law, and that PAL is not liable for any unfair labor practice as a result of said termination.
Bautista said Baldoz based her October 29, 2010 Order on pertinent provisions of the Labor Code, Civil Code, past rulings of the National Labor Relations Commission (NLRC), Supreme Court decisions and the current collective bargaining agreement (CBA) between PAL and the PAL Employees Association (PALEA).
He said complaints by PALEA officers and other militant groups that the DoLE ruling trampled on workers’ rights have no factual or legal justification.
According to Bautista PAL’s string of massive losses in the last two years amounting to US$312-million or almost P15-billion necessitated the spin-off to ensure PAL’s continued survival. He said the sale of the three non-core units was only done as a last resort after 14 major cost-cutting measures proved inadequate to guarantee PAL’s continued operations.
PALEA officials agreed that the separation package offered them was indeed generous but they stressed that this can only tide them over for a few years.
The organization aired fears that allowing PAL to pursue the retrenchment program would hurt the
labor sector and set a bad precedent on the constitutionally-guaranteed security of tenure of workers.
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