President summons PAL official to Palace

by Joyce Pangco Pañares and Vito Barcelo
Manila Standard Today
November 13, 2010

PRESIDENT Benigno Aquino III said Friday he has intervened in the labor row at Philippine Airlines in a bid to reach a negotiated settlement between the flag carrier’s management and its restive ground staff.

“One of last meetings I had for this week was to talk to ... the representatives from the labor sector and PAL management in trying to get them closer to a negotiated settlement and ease the fears of both parties,” Mr. Aquino said.

“We are trying to be a bridge... The signs are promising.”

Mr. Aquino said a meeting with the airline’s chief executive Jaime Bautista in Malacañang Tuesday night was held at the Palace’s initiative.

He described the meeting as “preemptive” since it was scheduled before the officials of the PAL Employees Association appealed the decision of Labor Secretary Rosalinda Baldoz to allow the airline to spin off its “non-core” operations and lay off some 2,600 ground staff.

The Labor Department has allowed the airline to lay off the 2,600 people when it spins off its ground handling, catering and call center services.

The airline claims it needs to spin off those services to survive as a result of its continuing losses, but its ground staff is fighting to stop the carrier from subcontracting those services.

“Of course, I understand [the union] will also be filing a motion with the Court of Appeals, so that will make it sub judice and will raise issues as to how far and how long we can intervene,” the President said.

Bautista said his meeting with Mr. Aquino and Executive Secretary Paquito Ochoa was brief and cordial.

“The President spoke his mind about the PAL spin-off and asked many questions on how best to strike a balance between the concerns of workers and management,” he said.

But he said he had not received any official communication from the Palace regarding the scope, nature and effects of the presidential intervention.

“Apparently, Malacañang is waiting for the official communication from [the union],” Bautista said.

“As far as PAL is concerned, we’re also waiting for [the union’s] action on whether it will challenge the [Labor Department’s] decision before the Court of Appeals or the Office of the President.”

Bautista said the spin-off of its ground handling, catering and call center services was legal and stood on solid ground because the Labor Department had upheld it twice.

“We told the President that PAL is exercising its legal right and prerogative to restructure its organization and sell some operating units in accordance with the provisions of the Labor Code and existing jurisprudence,” he said.

“We are retiring 2,600 workers in order to save the jobs of the other 4,000 that will remain in PAL and to ensure continuing service to the nation and PAL’s 10-million passengers.”