December 16, 2010
Manila Standard Today
PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.
The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.
The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.
Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.
“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.
“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”
In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.
He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.
“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares
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