PAL seeking dialogue with union

Manila Bulletin
August 19, 2011
By Samuel P. Medenilla

MANILA, Philippines — Amid the recent decision from the Office the President (OP) favoring the outsourcing of its three non-core departments, Philippine Airlines (PAL) said Thursday it is seeking for a dialogue with its ground-base labor union before it implements the spin-off.

PAL spokesperson Cielo Villanueva said in a statement that PAL management is currently offering to meet with the representatives of the Philippine Airlines Employees Association (PALEA) as a sign of good faith.

“Philippine Airlines (PAL) said it would invite leaders of the PAL Employees Association (PALEA) for a dialogue to discuss the smooth and orderly implementation of the spin-off program,” Villanueva said.

“The PAL management also plans to hold town hall meetings in the affected departments to discuss the mechanics of the spin-off,” she added.

About 2,600 PAL employees are said to be affected by the planned outsourcing of its catering, call center, and ground handling departments so it could recover from its $312 million losses in 2009.

PALEA earlier filed a petition at the Department of Labor and Employment (DoLE) and later at the OP for the dismissal of the outsourcing plan, but both offices later upheld its legality.

Villanueva said PAL has already allocated P2.5 billion of separation packages and employment from its contractors for those who will be affected by the spin-off in accordance with DoLE’s ruling on the case.

She said some of the workers have already shown interest to avail of the packages,

Meanwhile, PALEA President Gerardo Rivera slammed the decision from the OP, which he claimed neglected to take into consideration the $72.5-M profit from PAL last year.