PAL says outsourcing plan to commence soon

Manila Standard Today
August 25, 2011
By Jeremiah F. de Guzman

Flag carrier Philippine Airlines will serve notices of termination to 2,600 ground employees as early as tomorrow as part of its job outsourcing program.

“PAL will definitely implement the spinoff. It will surely be this year, that’s the target. From a legal standpoint, only a temporary restraining order can prevent the implementation of the spinoff,” the source said Wednesday.

The source said affected are 2,000 from airport services, 400 from the catering section and 100 from call center reservations.

“They will be given notices of termination all at the same time,” the source said, adding the affected employees would be notified several days before the actual date.

Another source told the Manila Standard that notices of terminations would be sent out Friday to employees in the ground-handling, catering and call center reservations sections.

Gerardo Rivera, PAL Employees’ Association president, said in a phone interview Wednesday that the union was informed by a source inside the management that “termination letters” will be distributed tomorrow.

“We told the management not to make premature decisions because we will be availing of all available remedies and that include going to the Court of Appeals to file an appeal,” he said.

“In fact, we are targeting to file an appeal with the CA. Pending final judicial decision, Malacañang’s affirmation of PAL’s outsourcing plan is not final and executory,” Rivera added.

Sought for comment, PAL spokesman Cielo Villaluna said “there is no existing legal prohibition on the implementation of the spinoff plan.”

She declined to disclose the implementation date and the mechanics of the spinoff.

“These are details we cannot disclose, as yet. The employees who will be covered by the spinoff have the right to be informed first,” Villaluna added.

She said meetings were slated to commence in different departments soon. These will serve as venues for discussion on the orderly implementation of the spinoff plan, separation package and the process of availing it.

PAL’s move to outsource call center, ground-handling and catering services aims to reduce cost to ensure its long- term viability.

The Lucio Tan-owned airline expects to save up to $1 billion in operating costs if it could successfully trim its workforce to about 4,000 from around 7,000 now.