Palace orders status quo on PAL dispute

Posted on 09:54 PM, December 15, 2010
Business World

THE PALACE has issued a hold order on the labor dispute between the Philippine Airlines (PAL) management and its labor union over a planned outsourcing of the carrier’s three ground operations which would result in the layoff of some 2,600 workers.
The Office of the President (OP), in an order signed by Executive Secretary Paquito “Jojo” N. Ochoa last Tuesday, formally assumed jurisdiction over the labor row and directed PAL management and its labor union Philippine Airlines Employees’ Association (PALEA) to refrain from doing any action that will worsen the situation.

“PALEA and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition,” the order read.

The order also stated that the June 15 and Oct. 29 ruling of the Department of Labor and Employment (DoLE) approving the implementation of the outsourcing of PAL’s flight catering, airport services and call center reservations operations will be deferred pending a review of the case.

“We hold in abeyance the implementation of the subject Order to give way to the overriding interest of the parties,” the order read.

The PAL management said it will abide by Malacañang’s assumption order and welcomed the decision which it said has averted a strike by members of PALEA.

“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,” PAL President Jaime J. Bautista said in a statement yesterday. “The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.

PALEA President Gerardo F. Rivera also welcomed Malacañang’s move and said they will respect the status quo order.

“As we’ve said before, we will abide with whatever order comes from Malacañang. We will not insinuate a plan to hold a strike. We will not do that. We will respect the Palace’s order,” he said in a phone interview.

With the assumption of jurisdiction, the OP has consolidated PALEA’s petition for presidential intervention dated Nov. 12, to suspend the effect of the mass termination filed with DoLE last Nov. 8 and the notice of strike also filed with DoLE last Nov. 5.

President Benigno S. C. Aquino III last week said he has tasked Mr. Ochoa to talk to both management and PALEA to resolve the issue.

The president has been intervening in the labor case as the issues would have an impact on the riding public.

In an order last Nov. 18, the Palace asked DoLE to elevate complete records of the cases to the OP which received the documents last Dec. 6.

“The President of the Philippine shall not be precluded from determining the industries that in his opinion are indispensable to the national interest and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same,” the order read, citing Article 263 paragraph 3 of Presidential Decree 442 which instituted the Labor Code. -- Ana Mae G. Roa