PAL assures normal flights; CBA counter-proposal submitted

Manila Bulletin
March 29, 2011
By Samuel P. Medenilla and Madel R. Sabater

MANILA, Philippines – Philippine Airlines (PAL) management Monday assured the public that contingency measures are in place to keep its operations normal should PAL Employees Association (PALEA) stage an illegal strike.

“PAL lights will continue to be operated according to published schedules while all ticket offices and other sales and airport facilities in Metro Manila, the provinces, and stations abroad will maintain regular business operations,” Cielo Villaluna, PAL spokesperson, said.

Villaluna said PAL’s “interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out.”

She stressed that ground workers represent only a fraction of PAL's 7,000-strong workforce.

PAL said there was no reason for the holding of the referendum given management's willingness to open Collective Bargaining Agreement (CBA) negotiations.

Last week, Malacañang affirmed the decision of the Department of Labor and Employment (upholding the legality of PAL's spin-off of three non-core units, which apparently was unacceptable to PALEA members.

PAL President Jaime J. Bautista said the outcome of the Palace’s mediation over the outsourcing bid has a material impact on the next PAL-PALEA CBA as he urged the union leaders to give Malacañang due respect when it finally resolved the spin-off issue.

According to Villaluna, benefits, including hike in gratuity pay to P100,000 from P50,000 as ordered by the Office of the President, will be forfeited should PALEA proceed with its planned walkout and this will be declared illegal by authorities.

PAL Vice President for Human Resources Jose S.L. Uybarreta disclosed that management submitted Monday its counter-proposal consisting of salary increases for the first three years of a three-year CBA to be negotiated by PAL with PALEA.

“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management's sincerity and willingness to open negotiations with PALEA,” Uybarreta said.

Considering the prevailing economic environment, Uybarreta said “the amounts of P750 for the 1st year, P1,500 for the 2nd year, and another P1,500 for the 3rd year – are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008.”

Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office, meanwhile, said the interest of both parties were considered when Malacañang came up with its decision. (Samuel P. Medenilla and Madel R. Sabater)