PAL confirms meet, awaits palace action

Saturday, 13 November 2010 18:48
Business Mirror

THE Philippine Airlines (PAL) confirmed on Friday that top airline executives sat down with President Benigno Simeon Aquino III and Executive Secretary Paquito Ochoa on Tuesday to discuss the planned spin-off and its effects on some 2,600 workers.

PAL president and COO Jaime J. Bautista said the meeting was brief, but 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.

As to the reported Palace “intervention” in the PAL-Palea [PAL Employees Association] dispute, Bautista said he has not received any call or official communication from the Palace regarding the scope, nature and effects of such intervention.

“Apparently, Malacañang is waiting for the official communication from Palea. As far as PAL is concerned, we’re also waiting for Palea’s action on whether it will challenge the DOLE decision before the Court of Appeals or the Office of the President,” he said.  Bautista maintained that the spin-off is based on solid legal grounds.

“The DOLE upheld PAL’s position not only once but twice,” he said.  He said he explained to President Aqunio and Ochoa why the spin-off and corporate restructuring was necessary, particularly the massive $312-million losses that the flag carrier suffered in the last two years.

“We told the President that the PAL is exercising its legal right and prerogative to restructure its organization and sell some operating units in accordance with provisions of the Labor Code and existing jurisprudence,” he said, adding that the spin-off is not even designed for profit but just to ensure survival. “We are retiring 2,600 workers in order to save the jobs of the other 4,000 who will remain in PAL and to ensure continuing service to the nation and PAL’s 10-million passengers.”
Bautista also assured Malacañang that all affected PAL workers will receive separation pay equivalent to three times than those provided by the Labor Code and 25 percent more than the current PAL-Palea Collective Bargaining Agreement (CBA) as well as a generous set of separation benefits. They will also be hired by the third-party service providers of PAL.

He said the President and Ochoa both recognize that the DOLE twice upheld the validity and legal grounds for the spin-off.

“The President was also aware that Palea is poised to question the said DOLE ruling before the Court of Appeals which could limit Malacañang’s intervention options,” said Bautista

“The President has the power to review all decisions of the members of his Cabinet, and this applies to the DOLE ruling on the labor dispute of the Palea with the management of PAL. He has control over department secretaries and can pass upon their decisions.

“This power is provided for in Section 17 Article VII of the Philippine Constitution of 1986.  We strongly share the optimistic view of His Excellency President Benigno S. Aquino III for a negotiated settlement in the labor dispute. We continue to work to end the dispute by mutually acceptable solutions.  In fact, at the level of the DOLE, the National Conciliation and Mediation Board will again convene both the Palea and the PAL in a conciliation-mediation meeting on November 18, the third such meeting, over the notice of strike that the Palea had filed on November 5.