Thursday, 29 April 2010 00:00
PHILIPPINE Airlines (PAL) has picked two firms that will handle separately the 69-year-old flag-carrier’s catering and cargo handling services.
In a telephone interview, Gerardo Rivera, president of PAL Employees’ Association (PALEA) said the airline’s management, in a letter dated April 16, informed affected employees that catering services will be handled by Sky Chef, while cargo handling would be outsourced to Sky Logistics.
Rivera said that PALEA has rejected the notice of termination issued by the PAL management on April 26.
As of press time, PAL refused to confirm or deny the plan to outsource to Sky Chef and Sky Logistics.
Earlier, PAL awarded its call center service to ePLDT Ventus, a unit of Philippine Long Distance Telephone Co. (PLDT).
The outsourcing bid would entail laying off nearly 600 airline employees.
Under the partnership, ePLDT Ventus would handle the reservations, inquiries, bookings, disruption handling, back-office services and other call center services of the carrier.
These units will be phased out on June 1.
Call center services is one of the three non-core units that PAL will outsource to other firms. Other non-core units are flight catering services and airport services (including ground handling, cargo terminal/cargo handling and ramp handling).
PAL will rationalize its medical, information technology and human resource units so it can let go of 500 more employees.
The airline is expected to let go of 3,500 employees out of its 7,500 workforce to keep it from bleeding further.
The cost-cutting measures would save the company about P500 million to P1 billion a year. PAL is setting aside P2 billion to P2.5 billion to compensate the displaced workers.
Earlier, the Department of Labor ordered a halt to PAL’s outsourcing program to prevent a looming strike by the airline’s labor union.
Friday, April 30, 2010
Thursday, April 22, 2010
Cebu airport ready for protest actions of 400 PAL workers
April 21, 2010 07:46:00
Cebu Daily News
THE Mactan-Cebu International Airport Authority (MCIAA) is ready in the event 400 employees of the Philippine Airlines will leave their duties at the airport to protest the airline's plan for a mass layoff.
Danilo Francia, MCIA general manager, said that he didn't know if the PAL restructuring would affect the MCIA.
Francia however assured the MCIAA has ready procedures to follow if employees hold a strike.
He said he would not allow the PAL employees to hold any protest action in the airport premises especially in areas where passengers would be processed.
He said he had already advised all the airline companies to inform them of any peculiarities in their operations so that they could plan out well the actions to take.
PAL in a statement said that the laying off of workers was just the second part of their restructuring program. Late last year, the airline implemented the early retirement program for their employees.
Francia said the MCIAA was not too worried with the latest PAL developments if flight operations were to be considered because PAL no longer holds the most number of flights, Cebu Pacific does.
PAL in a press statement said the restructure of the company includes the spin-off of three non-core units effective on May 31.
The affected units are in-flight catering services, airport services, and call center reservations. Airport services include ground handling, pass\enger handling, cargo terminal and ramp handling.
The airline cited losses brought about by the global economic crisis, the oil price increases and the blacklisting of most Asian carriers in the European Union as the reason for the restructuring.
Members of the Philippine Airlines Employees Association (Palea) said they were ready to protest to stop the company from removing their employees.
Eutiquio Bulambot, Palea president in Cebu, said that the company just wanted to put workers under contractualization.
He said the union believes that the company was doing well. He cited cases in Cebu where the airline denied boarding because of overbooking of flights.
He said that Cebu PAL employees were just waiting for Manila union leaders to organize a nationwide action./Correspondent Carine M. Asutilla
Copyright 2010 INQUIRER.net and content partners. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Cebu Daily News
THE Mactan-Cebu International Airport Authority (MCIAA) is ready in the event 400 employees of the Philippine Airlines will leave their duties at the airport to protest the airline's plan for a mass layoff.
Danilo Francia, MCIA general manager, said that he didn't know if the PAL restructuring would affect the MCIA.
Francia however assured the MCIAA has ready procedures to follow if employees hold a strike.
He said he would not allow the PAL employees to hold any protest action in the airport premises especially in areas where passengers would be processed.
He said he had already advised all the airline companies to inform them of any peculiarities in their operations so that they could plan out well the actions to take.
PAL in a statement said that the laying off of workers was just the second part of their restructuring program. Late last year, the airline implemented the early retirement program for their employees.
Francia said the MCIAA was not too worried with the latest PAL developments if flight operations were to be considered because PAL no longer holds the most number of flights, Cebu Pacific does.
PAL in a press statement said the restructure of the company includes the spin-off of three non-core units effective on May 31.
The affected units are in-flight catering services, airport services, and call center reservations. Airport services include ground handling, pass\enger handling, cargo terminal and ramp handling.
The airline cited losses brought about by the global economic crisis, the oil price increases and the blacklisting of most Asian carriers in the European Union as the reason for the restructuring.
Members of the Philippine Airlines Employees Association (Palea) said they were ready to protest to stop the company from removing their employees.
Eutiquio Bulambot, Palea president in Cebu, said that the company just wanted to put workers under contractualization.
He said the union believes that the company was doing well. He cited cases in Cebu where the airline denied boarding because of overbooking of flights.
He said that Cebu PAL employees were just waiting for Manila union leaders to organize a nationwide action./Correspondent Carine M. Asutilla
Copyright 2010 INQUIRER.net and content partners. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tuesday, April 20, 2010
PAL to spin off three non-core units
INQUIRER.net
First Posted 10:30:00 04/19/2010
MANILA, Philippines—Effective at the close of business hours of May 31 this year, Philippine Airlines (PAL) will implement the next phase of its restructuring program, starting with the spin-off of three non-core units, the national carrier said in a news release.
The affected units are Inflight Catering Services; Airport Services (including ground handling, cargo terminal/cargo handling and ramp handling); and Call Center Reservations
The spin-off is being pursued in accordance with labor laws and the collective bargaining agreement between PAL and the Philippine Airlines Employees Association (Palea), the airline said.
PAL assures its customers that there will be no disruptions to its operations during the implementation of the restructuring measures.
“All domestic and international flights are being operated according to published departure and arrival times. All PAL offices and facilities in the Philippines and overseas remain open to serve customers. And all accredited travel agents continue to sell and honor PAL tickets,” it said.
PAL said it is constrained to pursue the restructuring plan due to several factors beyond its control that include, among others:
* unabated liberalization of the commercial aviation industry to the detriment of local players like PAL;
* the worldwide economic recession that led to a crippling slowdown in passenger traffic;
* record-high oil prices in 2008-2009 and the continuing increase in the price of aviation fuel, which account for nearly half of PAL’s operating expenses;
* downgrade of the Philippine aviation sector to Category II by the United States that prevents PAL from using brand new long-range aircraft or increasing flights to the United States; and
* the subsequent blacklisting of Philippine carriers by the European Union, ruining the reputation of even those airlines with outstanding safety records like PAL.
“PAL did its best to adjust to the harsh operating environment. It implemented a series of cost-cutting initiatives, including a manpower rationalization program in September 2009 that affected more than 400 executives and administrative employees. In 2000, PAL restructured its organization and spun-off/sold its Maintenance and Engineering Department to Lufthansa Technik Philippines (LTP),” PAL said.
Apart from a series of cost-cutting initiatives, PAL said it approached several investors but none were interested given the fact that in 2009 alone, more than 20 airlines went bankrupt. “We approached government for help but it, too, was in dire financial straits,” it added.
Meanwhile, PAL’s financial situation continued to deteriorate, with the company sustaining over $350 million (or more than P15 billion) in losses during the last two fiscal years. Its equity has also dropped precipitously to a little over $1.1 million as of February 2010.
To stave off failure and protect company assets, PAL said it had to act quickly. “Given this grim scenario, PAL has no choice but to restructure. It must also sell and/or cease operations of non-core businesses since no airline in Asia, or the world for that matter, continue to operate non-core businesses. Moreover, PAL has to meet its huge outstanding obligations as they fall due to prevent creditors from taking over the business,” it stressed.
Difficult as the restructuring program may be, PAL asked its stakeholders—unions, partners in the travel trade, government, and especially the flying public—to support the flag carrier as it reorganizes into a leaner, more efficient company.
First Posted 10:30:00 04/19/2010
MANILA, Philippines—Effective at the close of business hours of May 31 this year, Philippine Airlines (PAL) will implement the next phase of its restructuring program, starting with the spin-off of three non-core units, the national carrier said in a news release.
The affected units are Inflight Catering Services; Airport Services (including ground handling, cargo terminal/cargo handling and ramp handling); and Call Center Reservations
The spin-off is being pursued in accordance with labor laws and the collective bargaining agreement between PAL and the Philippine Airlines Employees Association (Palea), the airline said.
PAL assures its customers that there will be no disruptions to its operations during the implementation of the restructuring measures.
“All domestic and international flights are being operated according to published departure and arrival times. All PAL offices and facilities in the Philippines and overseas remain open to serve customers. And all accredited travel agents continue to sell and honor PAL tickets,” it said.
PAL said it is constrained to pursue the restructuring plan due to several factors beyond its control that include, among others:
* unabated liberalization of the commercial aviation industry to the detriment of local players like PAL;
* the worldwide economic recession that led to a crippling slowdown in passenger traffic;
* record-high oil prices in 2008-2009 and the continuing increase in the price of aviation fuel, which account for nearly half of PAL’s operating expenses;
* downgrade of the Philippine aviation sector to Category II by the United States that prevents PAL from using brand new long-range aircraft or increasing flights to the United States; and
* the subsequent blacklisting of Philippine carriers by the European Union, ruining the reputation of even those airlines with outstanding safety records like PAL.
“PAL did its best to adjust to the harsh operating environment. It implemented a series of cost-cutting initiatives, including a manpower rationalization program in September 2009 that affected more than 400 executives and administrative employees. In 2000, PAL restructured its organization and spun-off/sold its Maintenance and Engineering Department to Lufthansa Technik Philippines (LTP),” PAL said.
Apart from a series of cost-cutting initiatives, PAL said it approached several investors but none were interested given the fact that in 2009 alone, more than 20 airlines went bankrupt. “We approached government for help but it, too, was in dire financial straits,” it added.
Meanwhile, PAL’s financial situation continued to deteriorate, with the company sustaining over $350 million (or more than P15 billion) in losses during the last two fiscal years. Its equity has also dropped precipitously to a little over $1.1 million as of February 2010.
To stave off failure and protect company assets, PAL said it had to act quickly. “Given this grim scenario, PAL has no choice but to restructure. It must also sell and/or cease operations of non-core businesses since no airline in Asia, or the world for that matter, continue to operate non-core businesses. Moreover, PAL has to meet its huge outstanding obligations as they fall due to prevent creditors from taking over the business,” it stressed.
Difficult as the restructuring program may be, PAL asked its stakeholders—unions, partners in the travel trade, government, and especially the flying public—to support the flag carrier as it reorganizes into a leaner, more efficient company.
PAL union vs. planned layoff of 3,000
INQUIRER.net
First Posted 12:47:00 04/19/2010
MANILA, Philippines—Philippine Airlines (PAL) employees on Monday held a motorcade on Monday in protest at a massive retrenchment to be implemented on May 31.
An estimated 3,000 employees, or more than half of the total PAL workforce, will be laid off due to the closure of the in flight catering services, airport services (which includes ground, cargo, and ramp handling), and call center reservations including all support units.
The motorcade of some 40 cars and motorcycles started around 11:30 a.m. at the PAL Center located at the PNB Compound along the Diosdado Macapagal Avenue in Pasay City. The motorcade moved on to Nichols airport terminal then onto the PAL In Flight Center (IFC) along Airport Road in Paranaque and finally ended at the Terminal 3 of the airport.
Gerry Rivera, newly elected president of the PAL Employees Association (Palea) and vice chairman of the party-list Partido ng Manggagawa (PM), said the spin-off aims to outsource work to companies also owned by Lucio Tan “where workers will be non-union and thus receive cheaper wages, fewer benefits, and have no security of tenure.”
“Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spin-off were employed by Macro Asia and Lufthansa Technik on new contracts.”
Meanwhile, PM chairman Renato Magtubo expressed support to the struggle of the PAL workers.
“We challenge the presidential candidates to state their position on the scourge of contractualization and their platform on job generation. The workers are not satisfied with motherhood statements but want to hear concrete programs,” Magtubo said.
Rivera explained that the motorcade is only the opening salvo in the fight against massive layoff in PAL. Last year’s plans to spin-off the same departments were stopped by PAL workers’ protests led by Rivera.
“Spin-off is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers,” Rivera said.
Palea was furnished a memo by PAL president and CEO Jaime Bautista dated April 16 which announced the planned layoff. Before the motorcade, the Palea protesters attended a hearing at the Metro Manila office of the labor department for an inter-pleader filed by PAL management.
The PAL union is alleging that an election protest filed by losing candidates in union elections held last February is part of the scheme to weaken Palea in the face of the fight against spin-off and layoff.
First Posted 12:47:00 04/19/2010
MANILA, Philippines—Philippine Airlines (PAL) employees on Monday held a motorcade on Monday in protest at a massive retrenchment to be implemented on May 31.
An estimated 3,000 employees, or more than half of the total PAL workforce, will be laid off due to the closure of the in flight catering services, airport services (which includes ground, cargo, and ramp handling), and call center reservations including all support units.
The motorcade of some 40 cars and motorcycles started around 11:30 a.m. at the PAL Center located at the PNB Compound along the Diosdado Macapagal Avenue in Pasay City. The motorcade moved on to Nichols airport terminal then onto the PAL In Flight Center (IFC) along Airport Road in Paranaque and finally ended at the Terminal 3 of the airport.
Gerry Rivera, newly elected president of the PAL Employees Association (Palea) and vice chairman of the party-list Partido ng Manggagawa (PM), said the spin-off aims to outsource work to companies also owned by Lucio Tan “where workers will be non-union and thus receive cheaper wages, fewer benefits, and have no security of tenure.”
“Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spin-off were employed by Macro Asia and Lufthansa Technik on new contracts.”
Meanwhile, PM chairman Renato Magtubo expressed support to the struggle of the PAL workers.
“We challenge the presidential candidates to state their position on the scourge of contractualization and their platform on job generation. The workers are not satisfied with motherhood statements but want to hear concrete programs,” Magtubo said.
Rivera explained that the motorcade is only the opening salvo in the fight against massive layoff in PAL. Last year’s plans to spin-off the same departments were stopped by PAL workers’ protests led by Rivera.
“Spin-off is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers,” Rivera said.
Palea was furnished a memo by PAL president and CEO Jaime Bautista dated April 16 which announced the planned layoff. Before the motorcade, the Palea protesters attended a hearing at the Metro Manila office of the labor department for an inter-pleader filed by PAL management.
The PAL union is alleging that an election protest filed by losing candidates in union elections held last February is part of the scheme to weaken Palea in the face of the fight against spin-off and layoff.
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