By Lira Dalangin-Fernandez INQUIRER.net First Posted 15:34:00 12/15/2010
President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
MANILA, Philippines – President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).
Lawyer Marlon Manuel, one of the legal counsels of the PAL Employees Union (PALEA), said they received copy of the order from the Office of the President imposing a “stay order” on the two decisions by DoLE to retrench some 2,600 ground employees of the flag carrier.
At the same time, Manuel said the President directed the management and PALEA to “desist from undertaking any action that will aggravate
the situation pending the resolution of this petition.”
In effect, while the order prohibits PAL management from laying off
employees, it also restrains the union members from proceeding with
their planned strike.
PALEA members voted last week to hold a strike amid the ongoing
retrenchment but have yet to submit the results of the voting to
DoLE.
“In essence, it’s a temporary victory for the workers because the decision of the Secretary of Labor giving the go-signal to retrench the workers will not be implemented for now,” Manuel told INQUIRER.net in an interview.
INQUIRER.net tried to get a reaction from PAL management through its spokesperson Cielo Villaluna but she has not responded as of posting time.
The stay order will cover the decisions of the DoLE dated Oct. 29, 2010 and June 15, 2010.
The June 15 order, issued by then acting Labor Secretary Romeo Lagman, said that PAL’s plan to outsource its three units to third party service providers was “based on lawful ground and all in a valid
exercise of managerial prerogative.”
The October 29 order, gives the go-signal for the layoff of the 2,600 employees, who will be entitled to additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, their absorption to the respective service providers for one year, among others.
“We find the outsourcing of services and closure of the Inflight Catering, Airport Services, and Call Center Reservation Operations in
Philippine Airlines to be a just, reasonable, humane, and lawful
exercise of its management prerogative to reorganize the corporate
structure for purposes of viability of its operations, subject to entitlement,” according to the order.
Last month PALEA submitted a petition to the Office of the President
asking it to review both decisions, following the breakdown in conciliation talks with the management.
Manuel said the President’s stay order on the two DoLE decisions would take effect “pending determination of the merits of the two decisions.”
“We hold in abeyance the implementation of subject Order to give way
to the overriding interests of the parties,” Manuel said, quoting a portion of the order.
Manuel said it was within the powers of the President to assume
jurisdiction over the labor dispute.
“Under Article 263 of the Labor Code, it’s part of the extraordinary powers of the President, that he can assume jurisdiction over cases like this,” he added.
Manuel said the order did not give a time frame for the stay order, to
give enough time for the parties to arrive at an agreement. Meetings of the two parties will also be mediated by the Office the President, he said.
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