No strike, no spin-off at PAL

Palace orders status quo
By Norman Bordadora, Paolo Montecillo
Philippine Daily Inquirer
First Posted 05:28:00 12/16/2010

MANILA, Philippines — President Benigno Aquino III has ordered the Philippine Airlines (PAL) management and union to refrain from any action that would ground the nation’s flag carrier, and suspended a program to spin off PAL’s related services, Malacañang said Wednesday.

Mr. Aquino’s directives “to desist from any action that will aggravate the situation pending resolution” of the case were contained in an order signed by Executive Secretary Paquito Ochoa Jr., according to the President’s spokesperson, Edwin Lacierda.

“What it plainly means is that on the part of labor, they’ll not engage in strikes. On the part of management, there will be no lockout,” Lacierda said in a news briefing.

Welcomed

Both PAL management and the Philippine Airlines Employees Association (PALEA) welcomed Malacañang’s order signed on Tuesday.

In a statement, PAL president Jaime J. Bautista said the flag carrier will abide by the Palace order as it has always done so in the past.

“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 results of the Palace review of the labor dispute,” he said.

Bautista said the Palace order is most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“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. The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.

Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was PALEA who sought presidential review of the earlier order of the Department of Labor and Employment recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Initial victory

“It is an initial victory for PALEA. The order has stopped PAL’s mass termination of more than 2,600 employees,” PALEA lawyer Marlon Manuel said.

“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,” he added.

“We thank the President for this decision,” PALEA president Gerry Rivera said in a statement.
Rivera said the union had called off a strike planned this month. “This order by the Palace would be good for everybody, including especially for our union members,” he said.

“Holding a strike is very hard, but we planned one because we wanted to defend our jobs.”
PAL earlier said while its bookings had not been affected by strike threats, many worried passengers had called to ask if a possible work stoppage would result in a disruption of operations.