The Newsmaker
July 24-30, 1998
Makati City—The ground crew union of Philippine Airlines ended its five-day strike after signing an agreement with management early this morning.
“In the interest of industrial peace and harmony,” the two parties signed the terms of agreement at about 6:30 a.m. today after a series of marathon negotiations since the PAL Employees’ Association struck last July 22, 1998. All pickets will be lifted within 24 hours from the signing, allowing PAL to fully normalize its operations.
Twenty ramp supervisors and equipment operators of Philippine Airlines today crossed the picket lines of their own striking union at the Manila domestic and international airports.
They joined others who earlier went back to work various major services of PAL including Catering and ground handling since the wildcat strike of the PAL Employees’ Association started last July 22.
The bulk of today's "returnees" reported together shortly after pm. The rest came in trickles early in a day.
The steady flow of returning PALEA members considerably eased the workload from those who remained at their posts to ensure continued operations.
For the last three days since the strike broke out, PAL dispatched all published flights, most on schedule while some with inevitable delays.
As of 6 o'clock this evening. PAL already mounted all the 19 domestic flights for the day. Its four international flights were also dispatched while two others bound for the US are scheduled to depart Manila later this evening.
Industrial peace returned to Philippine Airlines early this morning when the airline's management and striking PAL Employees’ Association (PALEA) signed an agreement ending the five-day work stoppage by the airline's ground personnel.
The deal was reached after nearly 15 hours of non-stop all-night negotiations between the two sides and capped days of marathon talks under auspices of the National Mediation and Conciliation Board (NCMB) of the Department of Labor and Employment ( DOLE ).The accord was attested by Tuy Magsalin and Elliot Cojuangco, NCMB Executive Director and member, respectively .
All pickets are expected to be cleared within 24 hours the signing of agreement.
Under the terms of the pact, which was reached in the interest of industrial peace and harmony, both parties are recognized the need to pursue measures to “right size" PAL's workforce. This was necessary in order to ensure the survival, continuous operation and global competitiveness of the national flag carrier.
The accord further strengthens PAL's prospects for recovery as the airlines works out a comprehensive rehabilitation program with the Securities and Exchange Commission and its creditors that will nurse it back to financial health.
The agreement came after President Joseph Estrada personally took a direct hand in resolving the dispute. The efforts of the Department of Labor and Employment, particularly Secretary Bienvenido Laguesma, also proved crucial in finally bridging the gap between the two sides.
The PAL management panel was guided by the directions of PAL Chairman Lucio C. Tan and president Jose Antonio Garcia , who played key roles in bringing the talks to fruition . The negotiating was led by Executive Vice President Manolo E. Aquino, Senior Vice President Finance Jaime J. Bautista, Senior Vice-President Sales and Services Avelino L. Zapanta, and Senior Assistant Vice President-Personnel Marie Ann E. del Rosario.
PALEA wasrepresented by its President Alexander Barrientos , Vice President Gerardo Rivera, Secretary Jose Penas III , and Board Members Alfred Ramis, Renato Ramos, Pablito Arcilla, Edgardo Oredina , Romeo Sauler and Orlando Sarajan.
The agreement I notable for the humane and pro-people nature of it provisions. While both side accept the inevitability workforce reduction of the light of the current downturn in economic environment and the travel industry, this action will be done in compassionate manner.
PAL and PALEA agreed to reduce the airline's workforce by 1,800 employees, all PALEA members, who will be encouraged to voluntarily avail of the rightsizing program. Should the targeted number not be reached, the principle of "last in, first out” will be applied in separating employees. The reduction process is to be completed by August 16, 1998.
Affected employees will be extended a package of privileges and benefits to cushion the impact of the transition. Liberal travel privileges for employees and their dependents will be offered by PAL to those who voluntarily avail of rightsizing program.
Employees will also be afforded the opportunity to attend livelihood seminars organized by PAL for a period of three years. The affected employee and his dependents will be allowed to enroll in the PAL Dependent Medical Plans and enjoy its benefits for three years.
The airline also commits to pay the separation benefits in two installments - P30,000 or 50 % of the actual amount , whichever is higher, immediately and the balance within in six months.
Separated employees will also be granted first preference in hiring in the event PAL increases its manning complement in the future.
