PAL crew to get P2.6b in benefits

Manila Standard Today
October 14, 2011
by Jeremiah F. de Guzman

Philippine Airlines said Thursday it will release today P2.6 billion to workers displaced by its outsourcing program.

PAL said in a statement ground workers who did not join the Sept. 27 strike and now working with third-party service providers would get priority in the payment of separation benefits.

The airline said workers who declined to sign up with service providers but did not participate in the work stoppage would receive their checks starting Saturday.

“Per instructions of PAL management, we will give priority to employees who heeded PAL’s appeal for a smooth and orderly implementation of the spin-off/outsourcing program,” said PAL spokesman Cielo Villaluna.

She said checks for 338 former employees who joined the PAL Employees Association’s strike on Sept. 27 were on hold pending final clearances.

The airline said 2,300 would received retirement packages after PAL spun off three non-core units. Only 600 former PAL workers joined Sky Logistics, Sky Kitchen and SPi Global while nearly 1,700 workers did not.

Majority of the workers will receive an average of close to P800,000 in separation pay, including 125 percent of their monthly salary for every year of service, P100,000 gratuity pay and full converted-to-cash accrued vacation and sick leave credits.

PAL said 28 percent of retrenched employees would receive over P1 million; 37 percent will get between P750,000 and P1 million; and 22 percent below P500,000.

The highest package was P2.4 million, while those who served PAL for a minimum of one year would receive about P120,000. The cash component of the benefits will be tax-free.

PAL also assured a guaranteed salary and hospitalization benefits for one year to those who transferred to the service providers.