PAL firm CBA talks must not include issue of spinoff

Wednesday, 27 April 2011 19:37  Sara Susanne D. Fabunan / Correspondent
Business Mirror

FLAG carrier Philippine Airlines (PAL) maintained its position Wednesday that a new collective bargaining agreement (CBA) with its ground union should not include discussions on the issue of the planned spinoff of several services.

Appearing before the National Labor Relations Commission (NLRC), PAL president and chief operating officer Jaime J. Bautista reiterated the flag carrier’s position that the spinoff plan involving PAL’s catering, call center reservations and groundhandling departments “is firm, non-negotiable and therefore cannot be part of a new CBA that the union wants.” The decision has already been upheld as a legal and valid exercise of management prerogative.

“The Department of Labor and Employment [DOLE] during the time of President [Gloria] Arroyo and even President Aquino recognized the PAL management’s right to restructure its operations to ensure long-term survival and save jobs,” Bautista stressed.

He explained that while the planned spinoff will result in the early retirement of some 2,600 PAL workers, these employees will be absorbed or hired by third-party service providers.

“No man will be left behind. Those who are willing to work for the service providers have secure jobs waiting for them while the remaining 5,000 workers will have a better chance of keeping their jobs in the leaner but meaner airline,” Bautista said. 

He also belied claims by the union that management refuses to convene negotiations for a new CBA as claimed by leaders of the PAL Employees Association.

Bautista said PAL submitted its counter proposal to the CBA on March 28 at the National Conciliation and Mediation Board. “This is the best proof that PAL is willing to negotiate with its union,” he stressed.

He added that it will be illogical for the PAL management to agree to include the spinoff issue in the CBA negotiations when it has already secured the green light from DOLE and the administration to proceed with the same.