DOLE forms team to help PAL, workers

Business Mirror
September 6, 2011

WITH the plan of the Philippine Airlines (PAL) to layoff 2,400 workers, the Department of Labor and Employment in the National Capital Region has created a Quick Response Team to help the flag carrier and its displaced employees facilitate payment of their monetary benefits.

Metro Manila Labor Regional Director Raymundo Agravante said the Quick Response Team will also help PAL management to provide a package of assistance to displaced employees.

PAL has recently announced that it will start laying off 2,400 workers from the airline’s airport services, catering and call-center reservations units on October 1.

The 2,400 displaced workers, however, have the option to continue their service once they agreed to be employed by PAL’s third-party service providers.

PAL service providers Sky Logistics, for airport services, Sky Kitchen for catering, and SPI Global as its call center will wait for the employees’ decision but have already started processing early applications from PAL workers who have until September 9, 2011 to express their intention to join their new employer.

So far, only 400 employees have expressed interest to work for PAL’s service providers.

Affected workers will receive a transition benefits package that includes separation pay in the amount of 125 percent of their monthly basic salary for every year of service, P100,000 gratuity pay, 100-percent cash conversion of unused vacation and sick leaves, trip pass (ticket) benefits depending on years of service, and for those who choose to be employed by PAL’s service providers—guaranteed pay for one year of whatever salary is granted by the service providers, including one-year extension of medical and hospitalization benefits.

The PAL Employees Association (Palea) is questioning the spinoff or outsourcing program at the Court of Appeals.

PAL’s spinoff or outsourcing plan was recognized as a legal and valid exercise of management prerogative by acting Labor Secretary Romeo Lagman on June 15, 2010; affirmed by Secretary Rosalinda Baldoz on October 29, 2010; and twice upheld by the Office of the President on March 25, 2011 and August 11, 2011, respectively.

PAL has kicked off a series of town hall meetings where airline officials explained to affected workers the necessity of its outsourcing program in the face of mounting losses and stiff global competition.