Business Mirror
October 18, 2011
ALMOST 500 former Philippine Airlines (PAL) employees received their separation pay over the weekend as the carrier began distributing P2.6-billion in cash benefits to those affected by PAL’s outsourcing program.
The first batch to receive their separation checks were those who already transferred to PAL’s three service providers -- SkyLogistics Philippines, SkyKitchen Philippines and SPi Global.
They lined up at five check distribution points -- PAL HR office at the PNB head office at Pasay; PAL Benefits office at Nichols; PAL Cargo; NAIA Terminal 2 and PAL Cebu.
The following day, Oct. 15, PAL started distributing another 1,500 checks for the second batch -- those who refuse to accept jobs at the service providers but did not participate in the September 27 work stoppage at the NAIA Terminal 2. The whole distribution process could take about a week.
The checks of those who staged the wildcat strike are on hold pending the employees’ final clearance.
“There are long queues at the PAL counters in PNB and other areas, but PAL’s Human Resources, Finance and Legal departments are doing their best to process all applicants for the day,” PAL spokesperson Cielo Villaluna said.
PAL’s HR department will safekeep any unclaimed checks of employees all of whom are officially considered terminated as of October 1, 2011. PAL said hopes of rejoining the airline rather than its service providers are misplaced as the three departments where they used to work have been abolished.
Per PAL HRD records, more than 28% will receive P1 million and above; 37% will get between P750,000 and P1 million; and 22% below P500,000. The biggest check is for P2.4 million, while the smallest is P120,000. The cash component of the benefits is tax-free. The non-cash benefits include free PAL tickets, one-year hospitalization and salary guarantee.
Villaluna said components of the package are much higher than industry levels and more than the prescribed benefits under the Labor Code and PAL’s own Collective Bargaining Agreement with its ground workers’ union.
