Wednesday, 18 August 2010 13:08
BusinessMirror
STRESSING the primacy of public welfare over the interests of a private corporation, President Aquino on Wednesday warned Philippine Airlines (PAL) that the government is prepared to declare an open-skies policy if the national carrier fails to resolve its problems.
The President made the pronouncement in a news briefing, a day after talks between PAL and the Flight Attendants and Stewards Association of the Philippines (Fasap) before the Labor department collapsed, bringing the flag carrier closer to the edge of a strike by its flight crew.
Mr. Aquino was asked whether he believed it was timely to adopt an open-skies policy considering the problems besetting PAL.
Tourism Secretary Alberto Lim is strongly advocating an open-skies policy in the country, which will relax restrictions on foreign carriers in the country.
Recently, former Tourism secretary Narzalina Lim, who served under the Ramos administration, had revealed in Davao City that the Aquino administration was set to declare an open-skies policy soon, and she anticipated it would boost tourism.
She said the Department of Tourism (DOT) had hosted meetings where this was discussed. It wasn’t clear if the meetings were held after the PAL labor case had blown wide open, or if the current DOT leadership had been planning to push it in the Cabinet, with or without PAL’s problems.
“I’m appealing to both sides—you’re thinking of the current issues; think of future issues. If effectively you have failed to live up to your obligations to the people, the government will be forced to adopt a policy that will have to side with the riding public, the greater population, rather than the interest of just one corporation,” he said.
The President said PAL will effectively “hasten the opening of our skies, if they proceed to disrupt a very necessary service of the country.”
He added: “Having either a total open-skies policy or a partial open-skies policy which was done, I understand, somewhere in the late ’90s, is already being studied. There are already certain airlines that will make up for the slack in case the flag carrier is not in a position to fulfill its obligations.”
He said that among the options available to the government is to allow foreign airlines, through the open-skies policy, to fly routes that PAL cannot serve “so the interests of the people are protected.”
“The airlines have indicated interest to make up for any shortfalls from the onset of this crisis as soon as we found out about it. At the time, they were already conducting meetings, the DOT and the DOTC have been talking to potential companies that will take up the slack. . . .For all intents and purposes, we are very, very close to implementing it if it’s necessary,” the President said.
He said that PAL “provides a necessary service that impacts tourism, that impacts commerce.”
Besides ensuring undisrupted service if a strike cripples PAL operations, the President also cited the economic benefits of declaring an open-skies policy, which will “greatly enhance the tourism potential” of the country through “ease of travel” to the Philippines.
He said that during the campaign, he was informed that Bali in Indonesia used to have only 30,000 visitors per year but this shot up to 3 million when? the country adopted an open-skies policy.
“Tourism? is one of the biggest potential earners for our country. You figure $1,000 per visitor. We have?a figure of 3 million visitors currently. There is a projection of about six million in about? two years’ time. So 6 million visitors times $1,000 is a substantial amount,” he said.
Strike date known soon
THE PAL cabin-crew union said on Wednesday they “will announce the date of the strike so that the passengers can make necessary adjustments.”
The strike announced by Fasap president Bob Anduiza said majority of their 1,600 members are in favor of a strike. The group needs to get a majority vote from its members before it stages a strike.
PAL executives could not be reached for comment on Wednesday.
At a meeting before the National Conciliation and Mediation Board (NCMB) of the Department of Labor and Employment (DOLE) on Tuesday, Fasap said PAL management refused to discuss the union’s demand to lift the mandatory retirement age of 40 and instead offered a package of P80 million to augment cabin-crew salaries.
Fasap rejected the offer, saying it was not only too small but “PAL misses the point. The main issues are the discriminatory policies on retirement and gender issues.?The 40-year-old mandatory retirement age is unreasonable and unjustified.” ?
On the criticism of the offered additional compensation, PAL said it cannot give more due to its current financial difficulties. As for the retirement age, PAL officials had said the former union officers had signed the collective bargaining agreement providing for such retirement age.
Anduiza revealed PAL’s alleged policy on pregnancy and maternity leaves.?Flight attendants who get pregnant are placed on prolonged leave without pay and this period is deducted from her years of service. It is the same treatment for erring employees penalized with suspension. “It is not only discriminatory, it could well be unlawful,” said Anduiza.
“PAL cannot even explain to the public why it insists on retiring flight attendants at such an early age. PAL is also unfairly using this issue as leverage and bargaining chip to get difficult work-rule changes from the flight attendants and make them work more for less pay,” he added. (With L. Lectura)
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