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Thursday, September 30, 2010

PAL urged to take steps to avert strike

By Mayen Jaymalin (The Philippine Star) Updated September 30, 2010 12:00 AM

The Philippine Airlines (PAL) urged the Department of Labor and Employment (DOLE) to take immediate steps to avert a strike by its flight attendants.

“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” PAL spokesperson Cielo Villaluna said.

The Flight Attendants and Stewards Association of the Philippines (FASAP) announced yesterday that their 1,600 members are now preparing for a strike to paralyze operations of PAL after talks over salary and working conditions broke down.

“It was upon DOLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike,” Villaluna stressed.

She said PAL has been negotiating in good faith and has bent backwards to accommodate some of FASAP’s demands. “It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” she said.

Villaluna explained that PAL’s P105-million offer is hardly unreasonable considering the airline’s staggering losses in the last two years. PAL, she added, even agreed to increase the retirement age from 40 to 45 years if the union would allow junior cabin crew to fly international routes along with their senior counterparts.

“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL’s early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.

Bob Anduiza, FASAP president, said the cabin crew union already rejected more conciliation talks with management and the workers are now ready to stage a strike.

“It has become clearer now that FASAP is left with no choice but to definitely proceed with the planned strike,” Anduiza said after pulling out from negotiations with PAL management last Tuesday night.

The National Conciliation and Mediation Board (NCMB) said that both parties failed to come up with a compromise that resulted in a deadlock.

NCMB said PAL and FASAP representatives agreed to revisit their respective positions even though both parties expressed reservation over resuming talks.

Anduiza said PAL management has not presented any new offer and refused to provide higher compensation, continuing to reject their demand to abolish the 40-year-old retirement age and other sexist policies.

He explained that PAL’s previous offer of a P105-million financial package is still insufficient to cover the back wages of more than 500 flight attendants who are receiving salaries below the minimum wage.

Anduiza said the NCMB presented the correct minimum wage levels from the year 2000 up to the present during the meeting with PAL management.

“The advisory from the labor department clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage and yet management refused to come out with any new offer,” Anduiza said.

“FASAP finds no need to meet with PAL and will now concentrate on preparing for the strike,” he added.

He said FASAP would likely start the work stoppage to paralyze PAL’s operations by the end of October or early November.\

As this developed, Villaluna said PAL is preparing emergency measures in case the cabin crew push through with the strike.

“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc on the economy,” said Villaluna.

She added that from day one, FASAP has not shown any intention to consider anything short of their demands.

“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.

PAL’s corporate communication head Jonathan Guismundo said the company is still open for talks with FASAP members and the firm still expects a settlement of the labor dispute.

“Until this time PAL and FASAP are still looking for a middle ground, PAL has not shut the door and is willing to discuss issues with the flight attendants,” Guismundo pointed out.

PAL president Jaime Bautista, however, said they are pushing for a mixed-crew complement to allow both domestic and international crews to work side-by-side.

He said the proposed scheme would give domestic cabin attendants the recognition they deserve apart from giving international exposure as well as enable PAL to save on operational cost.

Meanwhile, some PAL flight attendants welcomed the management proposal to implement mixed crew assignments during mediation talks between the management and FASAP.

Most PAL cabin attendants flying domestic routes said the mixed crew assignment, which would allow younger crew members on domestic flights to work international flights alongside their senior counterparts, would translate to additional productivity pay, per diems and other allowances for younger crew members.
The proposed mixed crew complement is a precondition to raising the retirement age of crew members from 40 to 45 years old.

“Even before I became a PAL flight attendant, it was my dream to fly international, to see other countries and enjoy the perks of flying international,” said Sharon (not her real name), who was hired by PAL soon after graduating from an exclusive girls school.

Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform in flight.

A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before he/she can fly international.

“We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft,” she said.                                
    
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights.– With Rudy Santos

Still no deal between PAL, union

Manila Standard Today : News
September 29,2010

Talks between the Philippine Airlines’ management and flight attendants over a new deal hit an impasse after both sides refused to budge from their positions during a marathon meeting at the Labor department.

The Lucio Tan-owned airline maintained its offer of an P80-million one-time payment to settle the remaining economic issues in the proposed 2005-2010 collective bargaining agreement but the flight attendants did not accept the offer and insisted on its demand for an P180-million package.
At Labor officials scheduled an Oct. 4 meeting to have both sides try and break the impasse.
PAL said it could only offer as much as P80 million to the attendants’ union because of its dire financial condition.

The flight stewards and attendants association rejected PAL’s offer, claiming that it does not address the main issues such as retirement benefits and discriminatory policies.

“PAL insists on its hardline position  on the unreasonable retirement  age. PAL  does not even intend to correct its violations  of the minimum wage law,” Fasap vice president Andy Ortega said.
PAL’s flight attendants receive a monthly gross salary ranging from P30,000 to P80,000 each.
The flight stewards said they were willing to forgo their financial demand if only PAL management would agree to their position to increase the retirement age from 45 to 55.

“Whatever PAL is offering is being made contingent to PAL’s unreasonable positions. {PAL should not muddle the picture. It should address  the discrimination on retirement and grant fair increases’” Ortega said.

The flag carrier emphasized that it lost almost $320 million (over P15 billion) in the last two fiscal years due to the global economic crisis exacerbated by the spike in fuel prices, the downgrade of the Philippines’ aviation safety rating to Category 2 by the US Federal Aviation Administration, and the European blacklist of all Philippine carriers.

Fasap also complained about the several CBA violations of the PAL with its worrkers’ reduction plan.
The reduction scheme takes away “food on the flight attendants’ table, making them work more for less pay,” Fsap said.

Fasap also denounced as “gender discrimination” the airline’s policy to bar attendants, who are eight months pregnant, from serving as flight crew.

PAL should correct these discriminatory policies and not take advantage of the crisis to demand more concessions, Fasap said. Vito Barcelo

PAL attendants back out of negotiations

Aura Marie P. Dagcutan
Posted on 10:03 PM, September 29, 2010
BusinessWorld

FLIGHT attendants and stewards of flag carrier Philippine Airlines (PAL) withdrew from conciliation meetings with the carrier’s management on Tuesday, and have begun preparations for a strike between the end of October and the first week of November.
Robert Anduiza, president of the PAL-Flight Attendants’ and Stewards’ Association of the Philippines (FASAP), said talks at the National Conciliation and Mediation Board of the Department of Labor and Employment (DoLE) over a new collective bargaining deal were “deadlocked.”

“The strike will happen between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote,” he said.

The Labor department, however, can assume jurisdiction over the dispute on the ground of national interest to prevent a strike and force both sides to compromise.

PAL spokeswoman Cielo Villaluna said in a statement yesterday the management had called on the DoLE to take immediate steps to avert the strike.

“It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” said Ms. Villaluna.

Mr. Anduiza pointed out that during the DoLE conciliation meetings, FASAP limited its issues to only three items, focused mainly on age and gender discrimination.

“PAL is playing games and is insisting on its unreasonable retirement age limit. [It is] not serious in resolving the dispute. PAL is just playing deaf and blind to the concerns of the flight attendants,” he said.

The group claimed PAL added more conditions to “muddle the issue and ... make more money out of the dispute.”

“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” FASAP said.

It added: “PAL wants to paint itself as reasonable but the real motive is to exploit the flight attendants.”

Mr. Anduiza said the issue was not money but discrimination.

“The Philippine Commission on Women has already pronounced that PAL’s policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms. Etta Rosales, has also pointed out that PAL’s retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” he said.

The group also claimed the management has been refusing to correct flight attendants’ basic salaries to meet minimum wage levels.

FASAP said that during the conciliation meetings on Tuesday, a DoLE representative presented the correct minimum wage levels from the years 2000 up to the present.

“It clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage,” Mr. Anduiza said.

“We believe that PAL can well afford to pay and settle the labor dispute based on the hundreds of millions PAL has saving due to the under-manning of crew per flight. The crew are already working more and are being paid less. The problem is PAL does not want to prioritize taking care of the flight attendants.”

Lucio C. Tan-led PAL said there should be no disruption in operations as a strike will not happen overnight. “Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” said Ms. Villaluna.

“It was upon DoLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike.”

She said PAL was negotiating in good faith and had bent backwards to accommodate some of FASAP’s demands.

PAL’s P105-million offer is “hardly unreasonable considering the airline’s staggering losses in the last two years,” she added.

“PAL even agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts,” Ms. Villaluna said.

“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?”

Ms. Villaluna also said PAL’s early retirement age was benchmarked to other carriers in the region.

“PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.

Labor department officials could not be reached for comment. --

Strike looms as PAL and union talks fail

By Abigail Kwok
INQUIRER.net, Agence France-Presse
First Posted 09/29/2010

MANILA, Philippines—(UPDATE) Philippine Airlines cabin crew members are set to go on strike after talks with the management over pay and conditions bogged down.

The Flight Attendants and Stewards Association of the Philippines (FASAP) said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting union demands.
"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."

PAL assured passengers that a strike could not be called overnight, even as it urged the Department of Labor to take steps to avert the strike.

"PAL is preparing emergency measures in case such a strike will occur," airline spokeswoman Cielo Villaluna said without elaborating.

The 1,600-strong union said work stoppages would begin from the end of next month, warning the walkout would ground all operations of the troubled airline during the peak season ahead of the Christmas holidays.

Anduiza said the decision to push through with the work stoppage came after Tuesday’s meeting of the labor group with PAL at the National Conciliation and Mediation Board of the Department of Labor and Employment ended in a deadlock.
He said PAL refused to address union demands on the mandatory retirement age of flight attendants and to increase the minimum wage for cabin crew members.
The PAL management insisted on paying P8,605 as minimum monthly wage of cabin crew instead of the P12,288 minimum pay mandated by the Department of Labor and Employment, Anduiza said.

“(T)he PAL flight attendants' entry level pay of P8,605 is way, way below the present P12, 288 minimum wage,” he said.

The union also accuses management of refusing to pay women who were on maternity leave while freezing pay for the past three years.
The union this month warned the government of its plan for a strike if PAL did not meet its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.

“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” Anduiza said.

President Benigno Aquino previously stepped in and ordered the labor department to mediate but was unable to settle the row.

Villaluna said the flag carrier negotiated in good faith and was even about to accommodate some of the union demands.

"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.

Anduiza said, “PAL wants to paint itself as ‘reasonable’ but the real motive is to exploit the flight attendants.”

“PAL is adding more conditions to muddle the issue and intends to make more money out of the dispute,” he said.

Anduiza stressed that PAL should change its discriminatory labor practices.

“PAL misses the point. This is not about making money. This dispute is about discrimination,” he said.
“The Philippine Commission on Women has already pronounced that PAL's policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms Etta Rosales, has also pointed-out that PAL's retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” Anduiza said.

Villaluna, meanwhile, accused union members of “playing hardball, dismissing outright management's offers without even a second glance."

The planned strike is the latest in a string of labor problems to hit the airline.
Last month, 25 pilots and first officers on PAL's short-haul aircraft suddenly quit for higher paying jobs abroad, forcing the abrupt cancellation of several flights.

PAL asks labor department’s help to avert strike

By Abigail Kwok
INQUIRER.net
First Posted 09/29/2010

MANILA, Philippines—Amid threat of a strike by its cabin crew, the Philippine Airlines has asked the Department of Labor and Employment to step in and stop the looming work stoppage.
PAL spokesperson Cielo Villaluna said the flag carrier has been negotiating in good faith and was even about to accommodate some of the demands of the Flight Attendants and Stewards Association of the Philippines.

"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.

"It was upon DOLE's recommendation that PAL and FASAP agreed to a recess and to meet again next week," Villaluna said.

She said FASAP was playing "hardball," immediately dismissing PAL's offers.
"A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way," Villaluna said.

The 1,600-strong FASAP earlier Wednesday said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting its demands.

"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."

The union this month warned government of its plan for a strike if its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.
Villaluna said that PAL's agreement to increase the retirement age from 40 to 45 years old was not illegal or immoral.

"PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral," Villaluna said.

She also said that there will be no layoffs under the proposed mixed crew scheme.
"Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so adverse to the idea of their younger members earning a little more?" Villaluna asked.
At the same time, Villaluna urged FASAP to accept the P105-million offer of PAL. She said that the amount was not unreasonable based on the airline's losses over the last two years.


Nevertheless, Villaluna said PAL will ready emergency measures ahead of the planned strike.
"PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and to protect the interests of the riding public," she added. With Agence France-Presse

PAL Urges DoLE to Avert Strike

By SAMUEL P. MEDENILLA
September 29, 2010, 8:12pm
Manila Bulletin

MANILA, Philippines – The Philippine Airlines (PAL) has asked the Department of Labor and Employment (DoLE) to intervene to avert the planned strike of the Flight Attendants' and Stewards' Association of the Philippines (FASAP).

“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public," PAL spokesperson Cielo Villaluna said.

Villaluna said the management of the country’s flag carrier was surprised with the decision of FASAP since it initially agreed to continue with negotiations until the end of the 30-day cooling period set by the National Conciliation and Mediation Board.

“It was upon DoLE's recommendation that PAL and the FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike,” Villaluna said.

She explained that PAL agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts.
“Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL's early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.

She added that from day one, FASAP has not shown any intention to consider anything short of their demands. “A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL is now considering emergency precautions and assured the public that its operations will not be affected in case FASAP will be push through with its strike.

PAL Urges FASAP to Accept P105-M Offer

By EMMIE V. ABADILLA
Manila Bulletin
September 29, 2010, 3:59pm

MANILA, Philippines – The management of Philippine Airlines (PAL), led by its President Jaime Bautista, Tuesday (September 28, 2010) urged the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) to accept PAL’s P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.

The call was made at the resumption of conciliation talks between PAL management and FASAP at the Department of Labor and Employment (DoLE).

The tripartite conciliation conference is the fourth meeting since FASAP filed its notice of strike last September 9, 2010. Three conciliation conferences between both sides have been held under the auspices of DoLE.

“I wish to assure FASAP members that PAL management is not taking a hardline stance. Despite serious financial difficulties, the company bent backwards to provide FASAP members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista stressed.
Saying that PAL is sincere in its efforts to put closure to the 2005-2010 CBA, Bautista is hopeful that FASAP will also show some degree of flexibility. “Nothing less than a true meeting of minds is needed to resolve the current impasse,” he said.

As of the last round of talks, agreements “in principle” were only on maternity-related benefits, and rice allowances amounting to P25-million. The agreement between both sides must be forged as a ‘‘package’’ in order to settle all economic, gender and retirement issues.

Bautista said P105 million  from the original P80 million  is PAL’s best offer given massive losses of US$312 million or over P15 billion in the last two years. Meanwhile, the early retirement age is ‘benchmarked’ on PAL’s major competitors in the region whose cabin crews are retired between the age of 35 and 45.

As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for the mixed crew complement. The set up will allow both international and domestic crews to work side-by-side.

‘‘By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things: 1) allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and 2) maximize utilization of PAL crew members, thus reducing need to hire more cabin attendants and therefore save on costs,’’ he explained.

Wednesday, September 29, 2010

Budget carrier tops PAL in domestic, int’l passengers

Neil Jerome C. Morales
Posted on 09:56 PM, September 28, 2010
BusinessWorld

BUDGET carrier Cebu Pacific said yesterday it remained the country’s top airline in the first half, beating Lucio C. Tan-led Philippine Airlines (PAL) in domestic and international operations.

New routes and an improved fleet will allow the Gokongwei-led airline to maintain its standing for the rest of the year, an official said.

“Based on the Philippine Civil Aviation Board’s official report covering the period of January to June 2010, Cebu Pacific flew 5.096 million passengers for combined domestic and international traffic, 214,416 passengers more than Philippine Airlines,” Cebu Pacific said.

Flag carrier PAL carried 4,882,471 passengers; Air Philippines Express flew 667,686; Zest Air, formerly known as Asian Spirit, had 623,529 passengers; and Seair flew 132,638, it added.

“Our continued expansion in Asia and in the Philippines [and] our trademark low fares [have] stimulated travel and tourism,” Candice A. Iyog, vice-president for marketing and distribution of Cebu Pacific, said in the same statement.

“It also enabled affordable and accessible business travel opportunities for many small and medium enterprises,” she added.

In the first half, Cebu Pacific said it cornered 48.7% of the domestic flight market.

The company attributed growth in its international passenger base to the addition of flights to Osaka, Seoul (Incheon), Singapore, Hong Kong, Shanghai, and Macau.

“We expect to further boost our combined domestic and international traffic in the last quarter of the year as we take delivery of three brand-new Airbus A320 aircraft,” Ms. Iyog said.

“These aircraft will be used to mount additional flights to Kota Kinabalu, Taipei, Kuala Lumpur, Jakarta and Seoul,” she added.

Cebu Air, the owner and operator of Cebu Pacific, will list in the local bourse next month. A primary offer of 15% to 16% of shares should raise $75-80 million, while a secondary offer by JG Summit Holdings, Inc., the firm’s major stockholder, should raise an additional $400 million to $500 million.

The amount Cebu Air will raise from the initial public offering will be used to make a down payment on planes it will acquire this year until 2014.

Cebu Pacific said it operates the youngest aircraft fleet in the country with 10 Airbus A319, 11 Airbus A320 and 8 ATR 72-500 aircraft and will take delivery of three brand new A320 aircraft in the last quarter.

It also claims to operate “the most extensive network in the country with 33 domestic and 16 international destinations.”

Cebu Pacific reported P23.3 billion in revenues and P2.1 billion in profits in 2009.

In contrast, PAL has been locked in labor disputes in the past few months, forcing the flag carrier to cancel and merge flights and cut destinations.

Officials of PAL were not immediately available for comment. --

PAL asks Fasap to accept proposal

Tuesday, 28 September 2010 12:46 Lenie Lectura / Reporter
BusinessMirror

THE management of Philippine Airlines (PAL) on Tuesday appealed to the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap) to seriously consider and accept the P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.

In a statement, PAL president Jaime Bautista said this call was made at the resumption of conciliation talks between PAL management and Fasap at the Department of Labor and Employment. The tripartite conciliation conference is the fourth meeting since Fasap filed a notice of strike on September 9. Three conciliation conferences have been held.   

“I wish to assure Fasap members that the PAL management is not taking a hard-line stance. Despite serious financial difficulties, the company bent backwards to provide Fasap members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista said.
In a recent meeting, both parties agreed in principle to expand maternity-related benefits and rice allowances amounting to P25 million. The agreement between both sides must be forged as a “package”—in order to settle all economic, gender and retirement issues.

As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for a mixed crew complement. “By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things—allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and maximize the utilization of PAL crew members, thus reducing the need to hire more cabin attendants and therefore save on costs,” Bautista said.

Tuesday, September 28, 2010

Airline ‘cost cutting’ for survival—PAL

INQUIRER.net
09/27/2010

MANILA, Philippines—The flag carrier’s cost-cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline's survival, the Philippine Airlines said in a news release.

PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.

To continue operating, she said the flag carrier needs approximately $230 million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.

Following huge losses due to the global recession and other factors beyond PAL's control, Villaluna said all of the airline's departments are mandated to be more cost-efficient.

She explained that cabin crew reduction is just one of many cost-cutting measures.

"The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.

Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.

Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced “manning” complement.

“Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.

"Estimated savings from crew reduction as measured by our Cabin Services is about P70 million a year, not P141 million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.

Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.

Despite better-than-expected passenger traffic in the first semester, she said PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years. "The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she explained.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.

Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class, with no more First Class section,” she said.

PAL and its union of flight attendants are in a labor dispute over the company’s “cost-reduction” measures.

PAL banking on staff cuts to survive

Manila Standard Today
September 27, 2010
by Jeremiah F. de Guzman

PHILIPPINE Airlines must save about $115 million a year from crew reduction and its planned spin-off of non-core units to continue operating, the company said over the weekend.

The carrier said it needed about $230 million a year to operate, and 50 percent of that money must be generated from cost savings.

The money saved from the airline’s belt-tightening efforts had already been allocated for maturing dollar debt, fuel costs, salaries, aircraft maintenance and other expenses, spokeswoman Cielo Villaluna said.

The airline earlier said it had about $1 billion in debt as of March 2010, down from about $2.3 billion in 1998, when it entered corporate rehabilitation.

In June, the company paid $46 million in principal debt and was required to pay $10 million more every month.

“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them,” Villaluna said.

“If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term.”

The cabin crew in the airline’s Boeing 747 aircraft was reduced to 16 from 18 in July, which was still one crew member higher than the minimum requirement of 15 crew members mandated by international safety standards and the Civil Aviation Authority of the Philippines, Villaluna said.

She said the savings from that reduction were about P70 million, and not P141 million as claimed by the cabin crew union.

Since the crew-reduction program started, the carrier’s cabin services department had not received any complaints about service quality, which showed that the airline’s dedicated staff had been able to meet passenger expectations.

“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits,” Villaluna said.

“They work a little bit more for the same pay, which simply means more efficiency.”

Despite improving traffic and revenue in the first half of the year, Villaluna said, the airline was still strictly adhering to its survival plan, which was crafted after it incurred more than $312 million in losses in the past two years.

“The survival plan became imperative especially after the airline’s equity dipped to just over $1 million in February 2010,” she said.

The airline reported a total comprehensive income of $31.6 million in its April to June 2010 peak months, down 11 percent from around $35.5 million in the same period last year.

Revenue for the three months ended June 30 rose 30 percent to $426.7 million from $327.7 million.

Total expenses grew 37 percent to $391.6 million from $285.5 million as fuel costs pushed up operational expenses.

The airline reported a net comprehensive loss of $14.4 million in the fiscal year ending March 2010 against $297.8 million the previous year.

PAL sets cost-cutting to survive

Business Mirror
September 27, 2010

Philippine Airlines (PAL) said that cost cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline’s survival.

In a news release, PAL spokesperson Cielo Villaluna said funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.

To continue operating, she said the flag carrier needs approximately $230-million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.

Following huge losses due to the global recession and other factors beyond PAL’s control, Villaluna said all of the airline’s departments are mandated to be more cost-efficient.

She explained that cabin crew reduction is just one of many cost-cutting measures. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.

Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.

Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced "manning" complement.

"Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency," she said.

PAL Needs $230 Million a Year to Survive, Stay in Operations

By EMMIE V. ABADILLA
September 27, 2010, 7:02pm
Manila Bulletin

MANILA, Philippines – Philippine Airlines (PAL) needs US$230 million yearly, half of which must come from cost savings, the rest from sales and marketing. Hence, the flag carrier has to reduce its manpower and spin-off of non-core units in order to survive, stressed PAL spokesperson Cielo Villaluna.

Following huge losses due to the global recession and other factors beyond PAL's control, all of the airline's departments have to be more cost-efficient. Funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.

Cabin crew reduction is just one of many cost-cutting measures, she pointed out. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term."

Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. However, this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines, according to Villaluna.

Since the program’s start last July 1, PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced 'manning' complement.

“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she noted. "Estimated savings from crew reduction as measured by our Cabin Services is about P70 million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines."

Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, the flag carrier’s spokesperson reiterated.

Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than US$312 million in the last two years. "The survival plan became imperative especially after the airline's equity dipped to just over US$1 million in February 2010," she explained.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” Villaluna went on.

PAL to Investigate Michael’s Complaint

By KAYE VILLAGOMEZ
September 27, 2010, 3:36pm
Manila Bulletin

MANILA, Philippines - After having been asked to step down from a flight to the US, comedian Michael V told GMA News on Friday that Philippine Airlines (PAL) has responded to his complaint.
It will be recalled that Michael V, together with his family, was scheduled to fly to the United States with the “Eat Bulaga” co-hosts for a show when a ground crew at the Ninoy Aquino International Airport (NAIA) stopped Michael, his wife (a former stewardess) and child from boarding.
“My wife already warned me that there is a chance we will not be allowed to leave the country because I had sore eyes and it has affected my wife and child,” Michael who is Bethoven Bunagan in real life told “24 Oras” in Filipino.

But after having passed through the airport’s medical quarantine, Michael and his family were given the green light. “We were checked by the doctor and were allowed to board the plane. Before the flight took off, a ground personnel told the pilot of the condition and we were asked to step down from the plane,” he related.

The “Bubble Gang” funnyman said he did not mind if he was not allowed to fly. What he thought was offensive was the faulty NAIA policy that allowed them to board the plane only to be asked to step down.

“There were flight attendants who said there had always been problems when it comes to cases like ours,” he related.

The comedian did not find it amusing when one of the ground employees even posted the incident in a social networking site.

Meanwhile, an airline representative informed the Kapuso actor that an investigation of the incident is being undertaken. Representatives from PAL confirmed reports that the airline office received the comedian’s complaint and related that such safety measures are implemented for the safety of other passengers.

PAL also said at least 10 passengers with sore eyes are not allowed to board their plane each day.

Monday, September 27, 2010

PAL says cost cutting necessary for survival

(The Philippine Star) Updated September 27, 2010 12:00 AM

MANILA, Philippines - Philippine Airlines (PAL) said cost cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline’s survival.

In a statement, PAL spokesperson Cielo Villaluna said funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.

To continue operating, she said the flag carrier needs approximately $230 million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.

Following huge losses due to the global recession and other factors beyond PAL’s control, Villaluna said all of the airline’s departments are mandated to be more cost-efficient.

She explained that cabin crew reduction is just one of many cost-cutting measures. “The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term,” she said.

Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.

Since the program’s start last July 1, Villaluna said PAL’s cabin services department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced ‘manning’ complement.

“Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.

“Estimated savings from crew reduction as measured by our cabin services is about P70 million a year, not P141 million as claimed by the Flight Attendants’ and Stewards’ Association of the Philippines,” she added.

Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in trying to cut costs to be more efficient, Villaluna stressed.

Despite better-than-expected passenger traffic in the first semester, she said PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years. “The survival plan became imperative especially after the airline’s equity dipped to just over $1 million in February 2010,” she explained.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.

Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.

Get a free airline ticket for your birthday

INQUIRER.net
First Posted 09/26/2010

MANILA, Philippines—Until November 30 this year, birthday celebrators are in for a treat from Philippine Airlines: a free ticket on any domestic route for every similarly routed ticket purchased during the promotion period.
In a new promo dubbed “Halloween Trip and Treats for your Birthday,” PAL is offering a free domestic ticket to all those marking their natal day between September 16 and November 30, 2010.
To avail of the free tickets, birthday celebrators must purchase a revenue ticket between September 16 and 30, 2010. He or she should present proof of birthday along with the revenue ticket at any PAL ticket office and the complimentary ticket is immediately issued.

Both free and revenue tickets must reflect the same domestic route and class of service. The free ticket is for the birthday celebrator and cannot be given to another person. Both tickets must be used for travel between September 16 and November 30, 2010, except for a brief blackout period from October 28 to November 2, 2010.

PAL flies between Manila and 20 domestic destinations: Bacolod, Butuan, Cagayan de Oro, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legaspi, Ozamiz, Puerto Princesa, Roxas, Tacloban, Tagbilaran, and Zamboanga.

To avail of the promo, visit www.philippineairlines.com, any PAL ticket office or accredited travel agents. For inquiries and bookings, call PAL Reservations at (02) 855-8888 in Manila, (032) 340-0191 in Cebu and (082) 221-5513 in Davao.

Cabin Crew Reduction to Ensure Survival – PAL

Manila Bulletin
September 26, 2010, 5:06pm

MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.

In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.

To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.

Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.

She explained that cabin crew reduction is just one of many cost-cutting measures.

“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.

Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.

Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.

 “Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.

“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.

 Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.

Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.

“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.

Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.

Cabin Crew Reduction to Ensure Survival – PAL

September 26, 2010, 5:06pm
Manila Bulletin

MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.
In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.

To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.

She explained that cabin crew reduction is just one of many cost-cutting measures.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.

Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.

Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.

 “Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.

 Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.

Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.

“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.

“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.

Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.

Saturday, September 25, 2010

PAL, cabin-crew union ‘agree’ to expand benefits

Friday, 24 September 2010 00:00
BY DARWIN G. AMOJELAR SENIOR REPORTER
THE MANILA TIMES

TALKS between Philippine Airlines (PAL) management and its cabin-crew union for a salary hike and changes in retirement age were deadlocked again, but both parties “agreed in principle” to expand maternity benefits.
In a statement, Cielo Villaluna, PAL spokesman, on Thursday said that the flag-carrier offered an additional P25 million in their rice allowance for 2007 to 2010, on top of the original P80 million one-time economic package for members of the Flight Attendants and Stewards Association of the Philippines (Fasap).

The offer brought to P105-million the total economic package being offered to Fasap, Villaluna added.

She, however, said that approval of the package would depend on signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.

“The offer was made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005 to 2010 Collective Bargaining Agreement [CBA] with Fasap,” Villaluna said.

Despite significant strides during Wednesday’s five-hour talks between the PAL management and Fasap, according to the PAL spokesman, “sticky” points remained such as the compensation package and changes in the retirement age of the flag-carrier’s crew.

Villaluna said that PAL could only offer P105 million, the flag-carrier having suffered huge losses in the last two years.

She added that the flag-carrier was willing to change the retirement age to 45 from 40 for both male and female crew, on condition that Fasap agree to a mixed-crew complement—a work arrangement allowing younger cabin crew to fly international routes together with more senior attendants, and the senior crew taking domestic flight assignments.

PAL said that junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.

Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap itself.

Because of this insertion, Villaluna said, only senior cabin crew enjoys higher perks and per diems when they fly international routes.

“We want to introduce changes in the current work rules so that both young and senior cabin attendants can serve in domestic and international routes,” she added.

“PAL hopes that the union would agree to the proposed changes for the sake of the younger crew.
Otherwise, it would appear that some Fasap members are discriminating against their own kind,” Villaluna said.

When sought for comment, Andy Ortega, Fasap vice president, said, “PAL is muddling the issues. PAL’s request to allow younger cabin crew to fly international [routes] is another issue.”

What mattered more, Ortega added, was increasing cabin crew salary and raising the retirement age.

Fasap has a pending notice of strike before the Department of Labor and Employment and expects to go on strike by end-October.

The PAL Employment Association (Palea), meanwhile, has asked the Labor department to reject the planned mass retrenchment of its members.

PAL to save P141M on cabin crew cutback—Fasap

By Jocelyn R. Uy
Philippine Daily Inquirer
First Posted 09/24/2010

MANILA, Philippines—The flight stewards union of the Philippine Airlines on Friday said the flag carrier would reap more than P141 million in savings for cutting down the number of cabin crew members per aircraft, an amount bigger than the financial package it was offering to flight attendants.
In a statement, the Flight Attendants and Stewards' Association of the Philippines claimed that the reduction program was being implemented "at the expense" of flight attendants now working double-time due to the small number of crew members serving per aircraft.

"The reductions scheme takes away food on the flight attendants' table, making them work more for less pay," said Fasap president Bob Anduiza in a statement Friday.

The program was enforced starting July despite strong objections from FASAP, he noted.
Citing documents detailing PAL's plans to reduce Cabin Crew Complement per aircraft type, FASAP on Friday said such scheme would result to a "whopping" P141,306,729.17 savings yearly for the national carrier.

"[This figure] is certainly several times bigger than the financial amount PAL is offering to the 1,542 flight attendants to cover for a three-year Collective Bargaining Agreement," said Anduiza.
PAL has increased its economic package offer from P80 million to P105 million. But Fasap was demanding for a P300 million economic package.

The cabin crew union has threatened to hold a strike against PAL after both camps failed to reach an agreement at the Department of Labor and Employment.

Among many other contentions that have yet to be settled include moving the retirement age of flight attendants from 40 to 60 years old, raising pay to be at par with that offered by foreign carriers and providing for a paid maternity leave.

Under the reduction scheme, a 400-seater plane, which previously operated with 18 cabin crew members, now only carries 12 flight attendants to serve passengers. The number of cabin crew in smaller aircraft has also been trimmed down.

Anduiza said the scheme was also shortchanging the riding public who pay a steep price for PAL's tickets "but will now get less service."

"The riding public should know about this because PAL has recently been trying to paint a picture that they are being reasonable in dealing with Fasap," he said.

Friday, September 24, 2010

PAL offers P105-million package to attendants, stewards group

(The Philippine Star) Updated September 24, 2010 12:00 AM
Rudy Santos, Mary Ann Reyes, Mayen Jaymalin

MANILA, Philippines - The management of Philippine Airlines (PAL) has offered a P105-million economic package to the restive Flight Attendants and Stewards Association of the Philippines (FASAP).

Both “agreed in principle” to expand maternity benefits but remained deadlocked over the issue of compensation and the retirement age.

PAL spokesperson Cielo Villaluna said the original offer was P80 million. PAL had offered a P25-million increase in their rice allowance for the period of 2007 to 2010 which now brings totals P105 million offered to the FASAP.

Villaluna also said the expanded benefits and allowances are part of a package.
“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put to closure its 2005-2010 collective bargaining agreement (CBA) with FASAP,” Villaluna said.
The FASAP, on the other hand, said there is yet no agreement concerning their major demands.
“There is still no agreement concerning our three major demands and until these issues are addressed we will be forced to go on strike,” FASAP president Bob Anduiza said.

After a five-hour meeting last Wednesday, Anduiza said it was only the PAL management that agreed in principle to provide the 1,600 flight attendants an additional P600 monthly rice allowance.
“From the previous P1,200 monthly rice allowance, the PAL management agreed to give P1,800, but only after a new collective bargaining agreement is finally forged,” Anduiza said.
Until this time, Anduiza said, the PAL management has not presented any proposal to their demand to amend the 40-year-old retirement policy, increase in pay and a stop to gender discrimination.
“FASAP cannot allow a compromise on retirement and gender issues because the Commission on Human Rights and other concerned agencies have already declared PAL’s policy on this matter as outdated,” he said.

Anduiza said FASAP also intends to seek the assistance of the International Labor Organization (ILO) on discrimination of the retirement age requirement of flight attendants.

PAL is willing to change the retirement age to 45 from 40 for both male and female crewmembers, on the condition that FASAP agrees to fixed crew complement and a rule arrangement allowing younger cabin crew to work on international routes.

PAL said junior cabin attendants are well trained and capable of serving international flights but provisions in their current CBA had put restrictions.

The current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP to allow senior cabin crew to enjoy more perks and per diem on international flights, Villaluna pointed out.

PAL hopes the union would agree to the proposed changes for the sake of younger crewmembers, otherwise it would appear that some FASAP members are discriminating against their own, she added.

PAL and FASAP will meet again next week, but if no agreement can be reached after Oct. 9, Anduiza added all the 1,600 flight attendants would go on work stoppage. –

PAL management, flight attendants agree on maternity benefits

Thursday, 23 September 2010 11:57 Lenie Lectura / Reporter

THE management of Philippine Airlines (PAL) and the Flight Attendants and Stewards Association (Fasap) are set to finalize a new agreement on maternity benefits. However, issues on compensation and changes in the retirement age of crew members remain unresolved.

Under the airline’s existing policy, flight attendants who get pregnant are placed on prolonged leave without pay and this period is deducted from her years of service. Fasap said even while on maternity leave, which is mandated by law, PAL also deducts the 60-day maternity leave from the flight attendants’ years of service.

PAL announced yesterday that the airline and the Fasap “agreed in principle” to expand the flight attendant’s maternity benefits.

The flag carrier has agreed to add the number of months a female employee has gone on leave from her third month of pregnancy to her total years of service. But the airline and the Fasap are still negotiating if this will be applied retroactively or upon signing of the new agreement.

PAL had earlier offered an P80-million compensation package to Fasap members and this offer was increased by P25 million.

The airline’s spokesman Cielo Villaluna said on top of PAL’s original P80-million offer last week, the airline is giving the union a P25-million increase in rice allowance from 2007 to 2010. This brings to P105 million the total economic package offered to Fasap.

Villaluna stressed, however, that the expanded benefits and allowances are part of a package. Hence, their approval are contingent on the signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.

“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement with Fasap,” she said.

Despite significant strides during Wednesday’s five-hour PAL-Fasap talks, Villaluna said “sticky” points remain such as the compensation package and changes in the retirement age of crew members. She said PAL could only offer P105 million after suffering huge losses in the last two years, but it appears that the union wants much more than what PAL is capable of giving.

Meanwhile, PAL is willing to change the retirement age to 45 from 40 for both male and female crew members, on the condition that Fasap agrees to a mixed crew complement—a work rule arrangement allowing younger cabin crew to fly international together with the more senior attendants, and vice-versa, while the senior crew takes on domestic flight assignments.

The management said junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.

PAL said the current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap. Because of this, only senior cabin crew enjoy higher perks and per diem when they fly international, Villaluna said.

“We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes,” she said.

PAL hopes the union would agree to the proposed changes for the sake of younger crew members. Otherwise, it would appear that some Fasap members are discriminating against their own kind, she pointed out.

PAL, cabin crew still deadlocked over pay, retirement age

Aura Marie P. Dagcutan
Posted on 09:43 PM, September 23, 2010
BusinessWorld

LUCIO C. Tan-led Philippine Airlines (PAL) has “agreed in principle” to expand maternity benefits for flight attendants and stewards but union leaders and the management remained “deadlocked” on compensation and the retirement age.
In a statement yesterday, PAL spokeswoman Ma. Cielo C. Villaluna said that on top of the original offer of P80 million for a new collective bargaining deal, the flag carrier was willing to grant a P25-million increase in rice allowances for 2007 to 2010.

This brings to P105-million the total economic package offered to the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).

However, Ms. Villaluna said the expanded benefits and allowances form part of a package and PAL’s approval was contingent on the signing by the airline and FASAP of “a final agreement that puts to rest all economic, gender and retirement issues under discussion.”

“We had a meeting with the group on Wednesday. The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with FASAP,” Ms. Villaluna said.

She added: “Despite significant strides during Wednesday’s five-hour PAL-FASAP talks, sticky points remain such as the compensation package and changes in the retirement age of crew members.”

Ms. Villaluna claimed the airline could only offer up to P105 million after suffering huge losses in the last two years, “but it appears that the union wants much more than what PAL is capable of giving.”

The airline also said it was willing to change the retirement age of cabin crew to 45 from 40 years old for both male and female attendants and stewards, as long as FASAP agreed to a mixed crew complement -- a work rule arrangement allowing younger cabin crew to fly international together with senior attendants, and vice-versa, with senior crew taking domestic flight assignments.

“Junior cabin attendants are well trained and capable of serving international flights but provisions in their CBA prevent them from doing so. Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP itself. Because of this, only senior cabin crew enjoy higher perks and per diems when they fly international,” said Ms. Villaluna.

She added: “We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes.”

Andy Ortega, vice-president of FASAP, told BusinessWorld in a telephone interview the airline’s offers were contingent on whether the union would agree to the proposed retirement age.

“PAL makes it appear that what they are offering to us is just reasonable but it is not. These are not firm offers,” he said.

Mr. Ortega said P105 million was clearly not enough, taking into account that FASAP has 1,600 members.

Early this month, the group filed a notice of strike with the National Conciliation and Mediation Board after withdrawing from mediation talks with the management. --

PAL, union ‘agree’ on maternity benefits

Airline firm offers P105M to cabin crew union
INQUIRER.net
First Posted 09/23/2010

MANILA, Philippines—The management of Philippine Airlines (PAL) and officers of the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap) have “agreed in principle” to expand maternity benefits, but remained “deadlocked” on the issue of compensation and changes in the retirement age of crew members.

In a statement released to media outfits, acting PAL spokesman Jonathan Gesmundo said that on top of the original P80 million PAL offered last week, the airline agreed to give the union a P25-million increase in rice allowance for the period 2007 to 2010.
This brings to P105 million the total economic package offered by PAL to its cabin crew union, he said.

Gesmundo stressed, however, that the expanded benefits and allowances are part of a package. This means their approval are contingent on the signing by PAL and Fasap of a final agreement that puts to rest all economic, gender, and retirement issues under discussion.

“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with Fasap,” he said.

Despite significant strides on the PAL-Fasap talks, Gesmundo said “sticky” points remain such as the compensation package and changes in the retirement age of crew members. He said PAL could only offer P105 million after suffering huge losses in the last two years.

Meanwhile, he said PAL is willing to change the retirement age to 45 from 40 for both male and female crew members but only if Fasap agrees to the mixed crew complement that would allow younger PAL crew members to fly international routes side-by-side with their senior counterparts.

Gesmundo said PAL management believes that junior crew members are well-trained and are fully capable of serving international flights but provisions in their CBA prevent them from doing so.

He said current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by the cabin crew union itself. Because of this, he said, only senior crew members enjoy higher perks and per diems when they fly international.

“We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes,” he said.

Gesmundo said PAL hopes the union would agree to the proposed changes for the sake of younger crew members.

Fasap Says They are Not Forum Shopping

September 23, 2010, 11:51am
Manila Bulletin

MANILA, Philippines (PNA) — The flight crew union of the Philippine Airlines (PAL) said they are not forum shopping when they filed a case before the Commission on Human Rights (CHR) last week.

“FASAP is not forum shopping. It is fighting for its human rights. The proceedings before the Department of Labor and Employment (DoLE) are neither judicial nor quasi-judicial in nature. It is a mere notice of FASAP's intention to go on strike.

"Likewise, the letter to the CHR is not an initiation of a judicial or quasi-judicial action that would render FASAP liable for forum shopping,” said the Flight Attendants and Stewards Association of the Philippines (FASAP) in a statement.

The group issued the statement in reaction on the statement of PAL management that they seeking other venue for their demands.

“PAL is once again evading the issues. It should answer why they are insisting on its unreasonable retirement policy. Again, that is the question,” they said.

They added that the Philippine Commission on Women has already denoulnced PAL's blatant acts of discrimination against its flight attendants while CHR chairperson Etta Rosales has already aired her views about the obvious violations of PAL on age and gender discrimination.

In a related development, PAL spokesperson Jonathan Gesmundo said the management maintains that the best venue to discuss all labor-related issues including the retirement age fall within the ambit and jurisdiction of the labor department.

He added since the retirement age can be set by agreement, it is PAL's position that the retirement age of its cabin crew as contained in its CBA with FASAP is valid and legal. It maybe subject to negotiation but it is certainly not illegal nor immoral as FASAP suggests.

“Nobody is forcing FASAP members to retire at 40. It is simply contained in the contract that FASAP signed in 1996 and 2000.

"Since FASAP feels it is unfair, the current conciliation meetings in DOLE is the proper venue to resolve it. Bringing the issue to the Commission on Human Rights, the streets or any other venue, to our mind, is simple forum shopping,” Gesmundo added.

With this, the PAL management advised the union to respect the DOLE and should not seek other venues to seek redress as they are the ones who brought the issues of unfair labor practices before the labor department.

Meanwhile, PAL ground crew union asks the DOLE to declare the planned retrenchment of some 3,000 workers as illegal and to find PAL guilty of unfair labor practice.

The call is contained in the comments that Philippine Airlines Employees’ Association (PALEA) submitted to Secretary Rosalinda Baldoz last September 14.

“On the basis of documents obtained from PAL, it is crystal clear that the financial position of the company does not warrant the retrenchment of some 3,000 union members, and that the company contracted out the services performed by these regular employees contrary to the collective bargaining agreement (CBA) between PAL and PALEA,” argued Gerry Rivera, PALEA president and vice chair of the Partido ng Manggagawa.

The office of the Labor Secretary has assumed jurisdiction of the PAL-PALEA dispute since April 23 in view of a notice of strike filed last January.

PALEA has a pending motion of reconsideration to the so-called “midnight decision” allowing PAL to proceed with the layoff that was issued by then Acting Labor Secretary Romeo Lagman in June 15.

PAL to push spin-off of non-core services

By Mary Ann LL. Reyes (The Philippine Star) Updated September 23, 2010

(PAL) emphasized yesterday that the move to spin-off some of its non-core units was necessary to allow the flag carrier to survive amidst several factors that have made it difficult for it to compete.
In a statement, PAL cited the massive $312 million losses suffered by the company in the last two years due to the global recession as well as the high fuel costs as some of the reasons why it had to save on costs.

It also blamed the decision of the US Federal Aviation Administration (FAA) to downgrade the Philippines from Category 1 to 2, disallowing PAL from mounting additional flights to the US or to even use brand new and more fuel-efficient aircraft, and the significant safety concerns raised against Philippine civil aviation authorities that led to the European Union’s ban of all Philippine carriers.
 In addition, PAL said global pandemics like SARS and avian flu, as well as cut-throat competition from budget carriers had made the business environment more difficult.

“Taken together, all these factors have made it very difficult for PAL to compete. It must save on costs in order to survive, hence the decision to spin-off,” it emphasized.

Company officials emphasized that while there is a noticeable increase in travel in recent months and a better income forecast by the International Air Transport Association (IATA), it does not mean that PAL is out of the woods. “To remain competitive in the future, it must strictly adhere to a survival plan that includes the spin-off of three non-core units,” they said.

PAL also stressed that the Department of Labor and Employment (DOLE) has recognized and upheld the justifications cited by PAL as valid grounds for the spinoff.

“We are hopeful that DOLE will affirm its earlier decision recognizing management’s prerogative to spin off non-core units. After all, PAL has fully complied with all the requirements of the Labor Code pertaining to the decision to close our three non-core units,” it said.

PAL likewise maintained that the best venue to discuss all labor-related issues, including the retirement age fall within the ambit and jurisdiction of the DOLE.

It said that since the retirement age can be set by agreement, it is PAL’s position that the retirement age of its cabin crew as contained in its collective bargaining agreement with the Flight Attendants and Stewards Association of the Philippines (FASAP) is valid and legal. “It may be subject to negotiation but it is certainly not illegal nor immoral as FASAP suggests,” the company emphasized.
Officials pointed out that nobody is forcing FASAP members to retire at 40. “It is simply contained in the contract that FASAP signed in 1996 and 2000. Since FASAP feels it is unfair, the current conciliation meetings in DOLE is the proper venue to resolve it. Bringing the issue to the Commission on Human Rights (CHR), the streets or any other venue, to our mind, is simple forum shopping,” they said.

They added that since it was FASAP who brought the issues of unfair labor practices before the DOLE when they filed a notice of strike, it must give DOLE the due respect it deserves rather than going to multiple venues to seek redress.

Earlier, PAL said that the complaint filed by FASAP before the CHR smacks of forum shopping and that it shows disrespect and a disturbing lack of confidence in the ongoing mediation hearings at the DOLE.

FASAP earlier filed a notice of strike before DOLE alleging violations of workers’ rights, ranging from maternity benefits, retirement age and pay. “Since DOLE has primary jurisdiction over these labor issues, PAL believes that the labor department is the proper venue to discuss and resolve them,” the company said.

PAL said it hopes the CHR will allow DOLE to perform its functions in accordance with law, adding that it hopes the CHR will be fair and impartial in handling this case, especially since current CHR chairperson Loretta Ann Rosales has publicly taken a position on the PAL-FASAP issue even before she was appointed to head the commission.

According to the air carrier, it was President Aquino no less who instructed DOLE to take the lead in resolving FASAP’s labor row with PAL management.

“But by using multiple venues, FASAP seems to be putting the President and DOLE in a straightjacket. It wants to show that it can choose a forum where it hopes to get a favorable decision. We maintain that in PAL, no workers’ rights have been trampled upon. Whatever salaries and benefits FASAP members enjoy are all contained in the current CBA,” PAL said.

It emphasized that a CBA is a contract between two consenting parties and that it is mutually agreed upon through serious deliberation and negotiation, with careful thought and aid of counsel.

“FASAP, as a collegial body, entered into a CBA with PAL management not once but several times in the past. It must be stressed that all previous CBAs were decided not by a few but ratified by all members of the cabin crew union,” it added.

PAL offers to Raise Economic Package, Retirement Age of Cabin Crew

September 23, 2010, 5:00pm
Manila Bulletin

MANILA, Philippines (Xinhua) - In a move to settle the labor dispute, flag carrier Philippine Airlines (PAL) management has increased its offer on the economic package and on the retirement age of its cabin crew members.

PAL spokesperson Cielo Villaluna said Thursday that while the 1, 600-member Flight Attendants' and Stewards' Association of the Philippines (FASAP) is yet to give its nod on the offer, FASAP " agreed in principle" to expand maternity benefits.

She said on top of PAL's original 80-million pesos (1.82 million U.S. dollars) offer last week, the flag carrier offered the union a 25 million pesos (570,000 U.S. dollars) increase in their rice allowance for the period 2007 to 2010. This totals to a 105 million pesos (2.40 million U.S. dollars) compensation package.

PAL also proposed to raise the retirement age for both male and female crew members to 45 from current 40, instead of 60 years old that FASAP has been asking for.

Villaluna explained that the expanded benefits and allowances are part of a package. Hence, their approval are contingent on the signing by PAL and FASAP of a final agreement that puts to rest all economic, gender and retirement issues under discussion.

"The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with FASAP," she said.
Despite significant strides during Wednesday's five-hour PAL- FASAP talks before the Department of Labor and Emplooyment (DOLE), Villaluna said 'sticky' points remain such as the compensation package and changes in the retirement age of crew members.

Villaluna added that PAL is willing to change the retirement age to 45 from 40 for both male and female crew members, on the condition that FASAP agrees to a mixed crew complement, a work rule arrangement allowing younger cabin crew to fly international together with the more senior attendants, and vice-versa, the senior crew taking domestic flight assignments.

Management said junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.

Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP itself. Because of this, only senior cabin crew enjoy higher perks and per diems when they fly international, Villaluna said.

"We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes," she said.
PAL hopes the union would agree to the proposed changes for the sake of younger crew members. Otherwise, it would appear that some FASAP members are discriminating against their own kind, she said.

FASAP earlier filed a notice of strike to DOLE

PAL hikes offer to cabin crew

Aura Marie P. Dagcutan
Posted on 04:49 PM, September 23, 2010
BusinessWorld

LUCIO C. Tan-led Philippine Airlines (PAL) management has “agreed in principle” to expand maternity benefits of its flight attendants and stewards but both sides remained “deadlocked” on the issue of compensation and changes in the retirement age of crew members.
In a statement, PAL spokeswoman Ma. Cielo C. Villaluna said that on top of the original P80-million offer for a new collective bargaining agreement, the flag carrier agreed to a P25-million increase in their rice allowance for the period 2007 to 2010.

This brings to P105-million the total economic package offered to Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).

However, Ms. Villaluna said the expanded benefits and allowances are part of a package, and the approval is contingent on the signing by the company and FASAP of “a final agreement that puts to rest all economic, gender and retirement issues under discussion.”

"The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with FASAP," she said.

She added: “Despite significant strides during Wednesday's five-hour PAL-FASAP talks, sticky points remain such as the compensation package and changes in the retirement age of crew members.”

Ms. Villaluna said the airline could only offer P105 million after suffering huge losses in the last two years, “but it appears that the union wants much more than what PAL is capable of giving.” --

Thursday, September 23, 2010

Lucio Tan Jr now owns 80% of MRC Allied

By Zinnia B. Dela Peña (The Philippine Star) Updated September 23, 2010 12:00 AM

MANILA, Philippines - Tycoon Lucio Tan’s son and namesake now owns 80 percent of MRC Allied Inc. after buying out the listed firm’s debt from several financial institutions.

On the sidelines of the company’s annual stockholders meeting yesterday, MRC president and corporate information officer Benjamin Bitanga said the group of Lucio “Bong” Tan Jr. bought out P600 million in debt of the property holding firm in exchange for around 80 percent of MRC.

MRC issued to Menlo Capital Corp., a company 51 percent owned by Tan, a total of 3.625 billion common shares coming from the increase in its authorized capital stock to P3 billion. The new capitalization consists of 15 billion common shares with a par value of 20 centavos.

Bitanga said the new management’s thrust is to acquire operating companies or entities that will give MRC immediate profitability. “Our goal is to post profits by the first quarter of 2011,” he said.

Labor chief sees hope in PAL mediation talks

PAL-Union talks tackles only rice allowance

By Jerome Aning
Philippine Daily Inquirer
First Posted 09/22/2010

MANILA, Philippines—The five-hour compulsory mediation talks between the management and cabin crew union of the Philippine Airlines ended at 8 p.m. Wednesday with an agreement covering only the workers' demand for a higher rice allowance.

Robert Anduiza, Flight Attendants and Stewards Association of the Philippines president, told reporters that the management agreed to increase the 1,600 union members' rice allowance from P1,200 to P1,800.

Anduiza said, however, that the union agreed to company's proposal only "in principle."
"Our agreement on the rice allowance is contingent on the other agreements that we might reach with management regarding our other major issues, such as retirement age, gender discrimination and wage hike," Anduiza said.

He said he hopes the management would "move" on the other pending issues with only 16 days to go before the end of the 30-day cooling off period that followed the union's filing of a notice of strike due to disagreements with management in negotiations for a new collective bargaining agreement.
The mediation talks, brokered by the labor department's National Conciliation and Mediation Board, resumes 2 p.m. on Tuesday next week.

Wednesday, September 22, 2010

PAL flight attendants bring discrimination case to CHR

By Leila B. Salaverria
Philippine Daily Inquirer
First Posted 09/21/2010

MANILA, Philippines—For Commission on Human Rights (CHR) Chair Loretta Rosales, Philippine Airlines (PAL) may be liable for violation of its flight attendants’ human rights, particularly rights against discrimination based on gender and age.

The Flight Attendants and Stewards Association of the Philippines (FASAP) has turned to Rosales for help in its labor dispute with the country’s flag carrier over its practice of imposing a mandatory pregnancy leave without pay and a mandatory retirement age of 40.

Rosales said the CHR would issue a resolution soon containing its position on the issue. But she made no bones about where she stands.

She said the issues being raised reminded her of an earlier era “when the world was less enlightened about the rights of women.”

But now, laws have been passed prohibiting gender discrimination, she pointed out. For one, the Philippines already has a Magna Carta of Women, which articulates the provisions of the Convention on the Elimination of All Forms of Discrimination Against Women.

“The gender discrimination issues they raised sound Jurassic,” Rosales said in a press conference with the FASAP, adding that the practices the group mentioned reeked of a “fossilized mentality.”
“It’s obvious there are violations,” she later added.

In a statement sent to the Philippine Daily Inquirer, PAL said FASAP’s complaint before the CHR “smacks of forum-shopping” and “shows disrespect and a disturbing lack of confidence in the on-going mediation hearings at the Department of Labor and Employment (DoLE).”

“Remember, it was FASAP who filed a notice of strike before DoLE alleging violations of workers’ rights...Since DoLE has primary jurisdiction over these labor issues, Philippine Airlines believes that the labor department is the proper venue to discuss and resolve them,” it said.

The FASAP has branded as discriminatory the imposition of mandatory pregnancy leave without pay for female flight attendants.

FASAP president Roberto Anduiza, in a letter to Rosales, said PAL’s treatment of pregnant attendants was no different from its treatment of workers who are suspended for violating company policy.

“The provision in effect penalizes women for being pregnant and suspends them for seven months without pay,” he said.

In contrast, the attendance records of male attendants who go on paternity leave are not affected.
Flight attendant Carol Henson said that after an attendant gives birth, PAL checks her weight and appearance before she is allowed to go back to work. If she fails to make the grade, she is prevented from returning to work until her condition improves, she said.

FASAP said the 40-year-old retirement age imposed on flight attendants was likewise outmoded and sexist.

Anduiza said other airlines follow the labor law, which prescribes a retirement age of 65.

“The forced retirement of flight attendants actually finds its root in sexism—likening flight attendants to cocktail or bar waitresses,” he said.

Rosales said she, too, objects to such practices, saying what is important in the airline industry is the safety of the flight, and the provision of proper services to passengers.

“They don’t need to be sexy or young. What is important is if they can provide the services needed,” she said.

PAL union fears demise on 64th anniversary

By Jerome Aning
Philippine Daily Inquirer
First Posted 09/21/2010

MANILA, Philippines—The Philippine Airlines Employees’ Association, one of the country’s oldest unions, marked its 64th anniversary Tuesday amid threats to its existence due to reported plans by the national flag carrier to retrench two-thirds of the union’s 4,000 members and outsource their functions.
About 200 PALEA members gathered at the PAL offices at the Ninoy Aquino International Airport Terminal 3 and then marched to the Our Lady of the Airways Parish church near NAIA Terminal 1 to appeal to the government to support their union and their job security.

“If Palea gets busted as a result of the planned job outsourcing and mass retrenchment of some 3,000 workers, then it will be the death of an institution,” Gerry Rivera, PALEA president and Partido ng Manggagawa vice chair, told reporters.

“For 64 long years, PAL employees enjoyed decent wages and good working conditions, thanks to the protection provided by the union. But with the advent of globalization, PAL’s new business model apparently demands that the company be without a union and full of contractuals,” added Rivera.
PALEA members and their supporters from other unions heard Mass at the Our Lady of the Airways Church, after which they held a program that lasted until noon.

PALEA, which groups about 4,000 PAL ground crew workers, has been opposing plans by the PAL management to lay off about 3,000 of them as the result of the planned spin-off of carrier’s airport services, in-flight catering and call center departments.

PALEA was founded on September 21, 1946. The theme this year of the union’s anniversary is “Job Security is Union Security.”

Last week PALEA submitted to Labor Secretary Rosalinda Baldoz company documents it obtained such as PAL’s latest financial statement and its outsourcing agreements with Sky Kitchen Philippines, Inc. and ePLDT Ventus Inc.

PALEA argued that the documents proved that the financial situation of PAL did not warrant the mass retrenchment and that the contracting out of services was in violation of the collective bargaining agreement.

Since April 23, the labor dispute between PAL and PALEA has been assumed by the Department of Labor, so the union has been prevented from going on strike.

A “midnight decision” allowing PAL management to proceed with the layoffs was issued by then Acting Labor Secretary Romeo Lagman on June 15. The decision is under review by Baldoz on the basis of a motion for reconsideration filed by PALEA.