NLRC junks PALEA's unfair-labor case

Manila Bulletin
October 5, 2011

MANILA, Philippines — The National Labor Relations Commission (NLRC) has junked charges of unfair labor practice filed by the PAL Employees Association (PALEA) against Philippine Airlines (PAL) for its alleged refusal to commence collective bargaining negotiations with the union early this year.

In a 14-page resolution received by PAL on September 29, NLRC’s Special Second Division ruled that the flag carrier was not guilty of unfair labor practice as PALEA failed to prove by substantial evidence its allegation that the airline violated its duty to bargain collectively.

NLRC, the labor relations arm of the Department of Labor and Employment (DOLE), upheld PAL’s stand that the issue on spin-off/outsourcing should be resolved first before it proceeds to collective bargaining.

PAL submitted to NLRC on March 28, 2011 its CBA (collective bargaining agreement) counter-proposal that only includes rank-and-file workers to be left behind after the outsourcing plan. Employees to be separated as a result of the airline’s restructuring program were excluded.

NLRC Presiding Commissioner Raul T. Aquino said the outsourcing issue must be resolved apart from the CBA dispute and may not, therefore, be considered a stumbling block to the continuation or completion of negotiations. The Commission said PALEA’s insistence to include the outsourcing issue in the labor dispute and its “uncompromising attitude” caused the breakdown of negotiations.

“The submission of PAL’s counter-proposal on March 28, 2011 is a positive indication of its intention to bargain collectively, and if there was any delay in the negotiation it was due to the union’s hardline position to include the issue on "outsourcing/spin-off" in the negotiation notwithstanding the favorable rulings of the DoLE and the Office of the President. At any rate, we find that the labor dispute on outsourcing is beyond the realm of CBA negotiations as it has its own legal course to take,” the Commission added.

This developed as Malacanang has rejected a possible dialogue with PALEA on its row with PAL management.

Presidential spokesperson Edwin Lacierda said the Palace has not received a formal request from PALEA for a dialogue. But he underscored that Palea should be discussing the matter with the Department of Labor and Employment since Labor Secretary Rosalinda Baldoz is the alter ego of the President.

Lacierda also said that there might be no need for a dialogue with the President as the Office of the President (OP) has already decided on the issue, wherein it affirmed DoLE’s earlier decision to push through with the outsourcing. (with a report from Madel Sabater)