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Sunday, October 31, 2010

DOLE allows spin- off of 3 PAL units

Sunday, 31 October 2010 12:06 Recto Mercene / Reporter
Business Mirror

THE labor department has affirmed the Philippine Airlines’ prerogative to spin off three noncore business units that may result in the layoff of some 2,600 rank and file workers.

Labor Secretary Rosalinda Baldoz, in affirming the spinoff of the three PAL units said that, “if there is no spinoff, PAL will close down and 7,500 workers will be displaced without separation pay, not to mention its adverse effects on PAL’s shareholders, the riding public and public interest.”
PAL welcomed the decision of Baldoz’s decision.

In a statement, PAL spokesman Cielo Villaluna said the spinoff means that the flag carrier will sell noncore units specifically its In-Flight Catering, Airport Services and Call Center units.
“Most airlines in the world, and almost all carriers in Asia, are now using third parties to supply and render noncore services. In PAL’s case, it is implementing the spinoff to cut costs and ensure the airline’s continued survival,” she said.

From the start, Villaluna stressed, the PAL management has maintained that the planned spinoff was done in good faith and justified by management’s prerogative to reorganize its corporate structure for the viability of its operations.

She said the PAL union had been aware of the planned spinoff since 1998, but it was deferred as PAL chairman Lucio Tan tried to make PAL profitable amid the difficult operating environment. So far only PAL’s Maintenance and Engineering department was spun off and bought by Lufthansa Technik Philippines in 2000.

She explained that a host of factors that include a massive $312-million loss in the last two years owing to the global recession, volatile fuel prices, the US Federal Aviation Administration’s downgrade of the Philippines’ aviation-safety rating to Category 2, cut-throat competition with low-cost carriers and other issues, forced PAL to find and implement radical ways to survive.

“Despite the implementation of major cost-control strategies and cash-generation initiatives, PAL was still way short of its goal to keep the company afloat. Hence, PAL crafted a comprehensive plan which includes restructuring and spin- off as key initiatives for survival,” she said.

She assured that those to be affected by the spinoff will receive separation pay and other benefits apart from the opportunity to work with the new service providers if they so desire. “Workers in other industries are not as lucky,” she said.

This developed as the Philippine Airlines Employees’ Association (Palea), the ground crew union at the national flag carrier, slammed Baldoz’s decision to allow the planned mass layoff of some 3,000 employees.

Gerry Rivera, president of Palea and vice chairman of Partido ng Manggagawa (PM), said: “The Department of Labor and Employment’s go signal for the retrenchment of half of the workforce means the death of job security at Philippine Airlines.”

On Friday, Baldoz denied Palea’s motion for reconsideration and affirmed the previous order by then acting Labor Secretary Romeo Lagman. Both Baldoz and Lagman found the planned mass layoff to be a legitimate exercise of “management prerogative.”

Friday, October 22, 2010

PAL marks World Sight Day

Roundup
Manila Standard Today
October 21, 2010

PHILIPPINE Airlines promised to transport human eye corneal tissue to any part of the country for free to help some 4 million Filipinos who are visually impaired, the Department of Health said on Wednesday.

PAL president Jaime Bautista said they are glad to assist "in their small way" those needing corneal transplants as the country's flag carrier supported World Sight Day.

Bautista said that with few eye donors for so many who are visually impaired, both government and the private sector have to work together to bring down incidence of blindness and visual impairment.

The Eye Foundation of the Philippines is a partner in the free human eye corneal tissue transport and are required to coordinate with PAL's cargo reservation a day before the day of transport.

Bautista also said PAL accepts human organs, in specially designed hand-carry containers, on all domestic flights and provides members of organ retrieval team with special boarding and deplaining privileges on a last-in-first-out basis.

Bautista explained that PAL's detailed packaging, handling and transport procedures for human organs was updated in October 2009 after the request of the Health Department for PAL's support to the Human Organ Preservation Effort Retrieval Team of the National Kidney and Transplant Institute.

PAL, he said, has always accommodated the kidney retrieval team to carry human subject to packaging requirements and without sacrificing the health, safety and comfort of its commercial passengers.

NKTI says the transport of human organs, such as kidneys and liver, require delicate handling as these organs are fragile and cannot withstand heat in the airplane's cargo hold. Kidneys also have to be transplanted on patients with end-stage renal failure within 20 hours.

Thursday, October 21, 2010

Air Philippines Now Flies to Legaspi City and Bohol

By EMMIE V. ABADILLA
October 21, 2010, 7:47pm
Manila Bulletin

MANILA, Philippines – Airphil Express started its Manila-Legazpi-Manila flights Thursday.
The country's fastest growing low-cost carrier adds premier South Luzon destination Legazpi City to its growing roster of routes with fares starting at P850 one way (exclusive of taxes).

“This is in response to the unmet demand for air travel in the Bicol region," according to Maria Java, Airphil Express' Vice President for Marketing and Media.

"Buses to and from South Luzon are packed to the hilt, take a whole day and cost as much as an airline seat. Airphil Express addresses this demand by assigning its most efficient aircraft to the route, the brand new Airbus A320 that allows us to serve Legazpi in world-class comfort, safety and efficiency for as low as your bus fare.”

“With the delivery of the second of four Airbus A320's coming in this year, Airphil Express can now respond to growing low cost air transportation demand," she went on. "Today alone, we launch 4 new destinations simultaneously. Apart from daily flights from Manila to Legazpi, APX now flies out of Manila direct to Tagbilaran, Bohol. Out of our Cebu headquarters, we are launching direct flights to Ozamis. Lastly, we launch Cebu-Catarman as well.”

Airphil Express has started daily flights to Bohol for as low as P1,008 one way, exclusive of taxes, cheaper than the boat fare heading for Manila from Tagbilaran. Vacationers, mostly European tourists, favor Bohol especially at end of the year when the cold hits the west. Most go to Panglao island.

“Bohol is the professional vacationers favorite mini-break destination," according to Maria Java, Airphil Express Vice President for Marketing and Media.

Airphil Express APX flies Manila to Tagbilaran daily at 9:40 a.m. and leaves Tagbilaran back for Manila at 11:25 a.m.

In its efforts to remain consumer-focused and community specific in its approach to its aggressive expansion, the burgeoning low cost player is zeroing in the traditional bus and ship going market, essentially growing its own loyal base of passengers.

“Because we have remained dedicated to the individual passenger and his flight experience with us, Airphil Express is seeing a consistent return of passengers to its rosters. We expect to see Legazpi's bus going public flying with us to and from Legazpi.” Java added.

The choice of a larger aircraft servicing the Legazpi route will allow APX clients to load more baggage or cargo at considerably more reasonable rates. Airphil Express is still the only low cost carrier that gives 15 kilos free baggage. Beyond that, a minimal cost of P100 per kilo is charged.
APX flies to Legazpi, leaving Manila at 12:10 noon daily, arriving in Legazpi at 1:10 p.m. The return flight to Manila leaves Legazpi at 1:40 p.m. and arrives at Manila's NAIA Terminal 3 at 2:40 p.m.
Starting December 1, a second daily flight will ensue, flying out of Manila at 8:20 a.m. and leaving Legazpi at 9:50 a.m.

Wednesday, October 20, 2010

PAL helps cornea, organ transport efforts

First posted 12:17:12 (Mla time) October 20, 2010
INQUIRER.net

MANILA, Philippines—Global awareness on sight restoration and preservation took center stage during the observance of World Sight Day last week (October 14) with non-governmental organizations (NGOs) and private firms among the active partners of the World Health Organization (WHO) program.

Flag carrier Philippine Airlines (PAL), in coordination with the Eye Bank Foundation of the Philippines, is a major partner of this initiative through the transport—free of charge—of human eye corneal tissue to its domestic destinations.

Eye Bank representatives are required to coordinate with PAL’s cargo reservation at least a day before the intended date of transport. Under its handling procedure, the airline allows the shipment of one human corneal tissue per flight.

“Thousands of Filipinos are visually impaired,” said PAL president and CEO Jaime Bautista in a news release. “With very limited number of eye donors, it will take a concerted effort by both government and the private sector to bring to manageable levels the incidence of blindness and visual impairment. We are more than glad that, in small way, to be of help to those needing corneal transplants in the Philippines,” he said.

Bautista said the airline does not limit itself with ferrying corneal tissue.

PAL also accepts human organs, in specially designed containers, as hand-carry baggage on all domestic flights and provides members of government’s retrieval team with special boarding and deplaning privileges (“last-in-first-out”), he said.

Bautista explained that PAL’s detailed packaging, handling, and transport procedures for human organs have been in place for many years. However, the policy was updated in October 2009 in response to the request of the Department of Health (DoH) for local airlines to extend full support and accommodate the HOPE (Human Organ Preservation Effort) Retrieval Team of the National Kidney and Transplant Institute (NKTI) through booking prioritization. The team, composed of retrieving surgeons, nephrologists, and transplant coordinators, use domestic flights to transport organs retrieved from deceased donors for transplantation.

“Even before the updated policy, PAL has always accommodated members of the kidney retrieval team to carry human organs on their laps while in flight, subject, of course, to strict packaging requirements and without sacrificing the health, safety and comfort of our passengers,” said Bautista.

NKTI says the transport of human organs, such as kidneys and liver, require delicate handling as these organs are fragile and cannot withstand heat in the airplane’s cargo hold. Kidneys also have to be transplanted on patients with end-stage renal failure within 20 hours, thus necessitating speedy transport.

Tuesday, October 19, 2010

PAL domestic flights back to normal—exec

First posted 11:39:17 (Mla time) October 19, 2010
Abigail Kwok
INQUIRER.net

MANILA, Philippines – All domestic flights of the Philippine Airlines are back to normal Tuesday, as typhoon “Juan” moves away from the country, a spokesperson for the airlines said.

"All PAL flights are green and go and will arrive and leave according to published schedules. We have zero cancellations today," said Cielo Villaluna in a statement.
Passengers of the Manila-Laoag-Manila flights that were cancelled on Monday are advised to visit any PAL ticketing office or call PAL reservations at (02) 855-8888. No rebooking penalty will be charged for passengers of these flights, she added.

Monday, October 18, 2010

The Big Stick

Oct. 17, 2010
By Benjamin G. Defensor
THE Manila Times

THEY were not by any means speaking with a soft voice but it turned out they had a big stick that is why the Philippine Airlines (PAL) management was able to dampen what could be a crippling strike by the Flight Attendants and Stewards Association (Fasap). For years the members of the PAL cabin crew were seeking the elimination of the age limits on flight stewardesses, who are now forced to retire at 40 or transfer to other tasks in the airline.

The cabin crew union, of course, have the usual economic demands and for years the age limit stayed on in the their collective bargaining agreement and now those who signed the contract face the threat of being phased out.

At about the same time that the cabin crew members were pushing through their protests against the age limit on their jobs, PAL received a sudden jolt when 25 of its pilots and first officers on short-haul aircraft suddenly resigned to accept higher paying jobs from pilot-strapped overseas airlines forcing the cancellation of some of PAL’s flights.

Fasap may have seen an opportunity to ratchet up its pressure on PAL by threatening to strike and stop the airlines operations unless their demands were met.

PAL being an essential service, the government may assume jurisdiction over the dispute and frustrate any attempt at a strike.

However, a threat from the Palace that the government may hasten the adoption of an open skies police which PAL says would be its end as foreign airlines may start coming in to serve the nation’s air transportation needs may have turned the trick. On the surface, open skies will promote competition leading to better service and cheaper fares.

However, big international airlines can afford to slash their fares to kill off competition from smaller airlines like PAL and other Philippine air carriers. Once these are driven off the air, the surviving airlines may then revert back to their higher fares with less competition.

With presidential spokesperson Edwin Lacierda quoting President Aquino as saying that if the strike threat was not resolved, “the government would be forced to rush the open skies . . .”

“What is important to the President is the concern for the riding public,” Lacierda said.

This could happen if the Secretary of Labor does not take jurisdiction over the dispute. While at the start of the row, Secretary of Labor Rosalinda Baldoz already made it known that she was indeed going to step into the dispute of avert the strike.

However, it was assumed that she would have to take her signals from the President on this matter. After all, she was one of three members of the Cabinet who were appointed in an acting capacity. But at the time, the PAL dispute was raging, President Aquino removed her designation as acting secretary and asked her if was willing to stay on the job permanently. She was and her permanent appointment was promptly drawn up.

The following day she announced that the government is assuming jurisdiction over the labor dispute at PAL. Secretary Baldoz then said that any strike or work stoppage by disgruntled PAL flight attendants would be illegal.

The flight attendants union promptly dismantled preparations for the strike that was scheduled for the last week of this month or the first week of November. Fasap issued a statement saying it “will respect the authority of Secretary Baldoz to assume jurisdiction over the dispute” but added the their fight against the unfair retirement age policy and discrimination against female flight attendants would continue.

PAL spokesperson Celia Villaluna said the airline was grateful for the assumption of jurisdiction because the strike threat was of grave concern for PAL clients.

“Since Fasap is banned from staging strike or any work stoppage, our passengers are assured of unhampered operations. We advise them to book early for their flights especially for the coming semester break and All Saints’/Souls’ Day holiday.”

She said PAL hopes; Secretary Baldoz would “judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scare away customers and investors.”

PAL streamlines Australian operations

INQUIRER.net First Posted 08:54:00 10/17/2010

MANILA, Philippines—Philippine Airlines (PAL) is realigning its Australian operations starting with the temporary suspension of flights to and from Brisbane effective October 31, 2010.

Consequently, the flag carrier’s five times a week flights to Melbourne will be adjusted to thrice weekly, while flights to Sydney—one of PAL’s most popular Australian destinations—remains unaffected with five times weekly services, PAL spokesperson Cielo Villaluna said.

In a news release, Villaluna said the decision to temporarily halt Brisbane services was due to marketing considerations.

Passengers to be affected by the flight realignments shall be properly notified by PAL’s contact center and advised on the best options to proceed to their respective destinations, she said.

Villaluna stressed that Australia remains an important market for Philippine Airlines. Recognizing the route’s growth potential, she reiterated PAL’s long-term commitment to the island-continent.

She stressed, however, that market conditions and the onset of the lean season necessitated some changes in the number of destinations and frequency of flights the flag carrier mounts to Australia.

RP aviation status up for review

Sunday, 17 October 2010 03:17
BusinessMirror

AVIATION experts from the European Union (EU) are arriving on Monday to assess the performance of the Civil Aviation Authority of the Philippines (Caap). And, on December 7, a team from the International Civil Aviation Authority (Icao) would follow up with a “technical audit.”
“The audit will confirm that the concerted efforts, sacrifices and resources that we made are on the right track toward professionalism and solid foundation of the Authority,” said Caap Director General Alfonso Cusi.

The experts are from the European Commission (EC), member-states of the EU and the European Aviation Safety Agency (Easa).

Cusi, in a press conference on Friday, said the EU experts are visiting, “specifically to assess the progress achieved by the Caap in addressing the Corrective Action Plan identified by the Icao, the US Federal Aviation Administration [FAA] and the Easa.”

They will also look into the ability of the Philippines to ensure the effective oversight of all or part of the air carriers under its supervision, and to assess the resources and competence of certain air operators certified by the Caap.

Following their assessment last year, the EU barred Philippine Airlines (PAL) and Cebu Pacific (CEB) from entering the European airspace.

Although the two air carriers have more than proven their capabilities as adhering to the standards set by the Icao when their officials visited the EU in March, they were nevertheless included in the ban to fly to Europe—a useless ban since these carriers currently do not have flights to the EU.

However, a subsequent announcement by the EU went a step further and prohibited EU citizens from using Philippine air carriers until the Caap had shown that it has complied with the “significant safety concerns [SSC]” found during their earlier assessment.

The Icao technical audit will focus on the areas of legislation, organization, personnel licensing, aircraft operations, airworthiness and the SSC.

Cusi is confident that after the visit, PAL and CEB would be removed from the EU blacklist this December.

Once this is accomplished, he feels confident that the country would then regain its Category 1 status sometime early next year.

“The Icao will validate the status of the implementation of the Corrective Action Plans that were previously submitted to have fully addressed the respective protocol questions identified in the findings,” he added.

Cusi’s optimism was shared by the Department of Tourism.

In a speech before the 36th Philippine Business Conference, Tourism Secretary Alberto Lim said the government is confident of getting out of the blacklist of the US FAA “by March next year once the audit is completed this month.”

Lim added, “On the FAA downgrade, and the EU travel ban, measures have been taken by the Caap to get us out of the black mark by March next year.”

He said an audit is being undertaken this month, which the Caap is confident of finally passing.
“The issue of hiring the appropriate technical personnel at their market rate has been resolved,” Lim said.

Caap, an agency under the Department of Transportation and Communications, is responsible for implementing policies on civil aviation to assure safe, economic and efficient air travel.

The downgrade by the US FAA hurt PAL, the only local airline that flies to the United States, but the flag carrier is not the only casualty; experts said it might also lead to huge losses for the trade and tourism industries, as it would create a negative impression for the country.

Among the FAA’s concerns were outdated aviation regulations, poor training programs for safety inspectors, and substandard licensing for airframe and engine inspectors.

In the FAA audit, the Philippines passed only the first requirement, which is the existence of a law on civil aviation.

Getting off the FAA downgrade would help the government attain its target of reaching 6 million tourist arrivals from the current 3 million tourists in six years, or after President Aquino’s term.  --R. Mercene

Friday, October 15, 2010

PAL halts flights to Brisbane

Thursday, 14 October 2010 11:15 Lenie Lectura / Reporter
BusinessMirror

CITING low load factor, Philippine Airlines (PAL) will temporarily suspend flights to and from Brisbane effective end of this month.

PAL president Jaime Bautista said in a phone interview yesterday that its Brisbane route, which reopened in March this year, was deemed not profitable. ?“We will continue to lose money if we don’t’ realign our Australian flights,” he said.

However, PAL will schedule Brisbane flights in December. “We will resume in December because it is a peak season. After that we will assess the market if there is a need to operate our Brisbane route even during lean months,” added Bautista.

In a statement, PAL said its five times a week flights to Melbourne will be adjusted to thrice weekly, while flights to Sydney—one of PAL’s most popular Australian destinations—remains unaffected with five times weekly services.

It added that market conditions and the onset of the lean season necessitated some changes in the number of destinations and frequency of flights the flag carrier mounts to Australia. Still. PAL said Australia remains an important market for the company.

In June, PAL said the load factor or the number of seats occupied during a flight for Sydney and Melbourne stood at about 80 percent to 85 percent and the Brisbane route accounted for about 70 percent PAL did not provide the current load factor for Brisbane, Melbourne and Sydney.

PAL first flew to Brisbane on June 5, 1985.? In succeeding years, the city formed a key part, along with Sydney and Melbourne, of the airline’s multi-legged operation to Australia. But commercial and operational difficulties spawned by the Asian financial crisis of 1997 forced the flag carrier to shut down its Australian services on June 5, 1998.

Passengers to be affected by the flight realignments shall be properly notified by PAL’s contact center and advised on the best options to proceed to their respective destinations.

Wednesday, October 13, 2010

PAL wins P3.3-million lawsuit vs AWOL pilot

By Rudy Santos (The Philippine Star) Updated October 12, 2010

MANILA, Philippines - For violating his contractual obligations and training agreement with Philippine Airlines in 2006, a former PAL pilot was ordered by the Makati regional trial court (RTC) to pay the country’s flag carrier millions of pesos in training fees and other penalties.

In a decision dated Sept. 15, Makati RTC Branch 133 Judge Elpidio Calis ordered pilot Zenon Lukban to pay PAL P1.5 million plus interest, at the rate of six percent annually, for the cost of his training at the PAL Aviation School.

The judge also told Lukban to reimburse PAL the amount of P1.87 million, plus interest, for the cost of training his replacement, as well as P50,000 in attorney’s fees.

Calis said one of the conditions of Lukban’s training agreement required him to serve the airline for five years in exchange for the cost of training shouldered by PAL.

Court records show that only two years after completing his training, Lukban, on April 19, 2006, wrote a letter of resignation to chief pilot Capt. Rolly Canlas. His resignation was to take effect on May 20, 2006.

On May 8, 2006, PAL management officially rejected Lukban’s resignation, saying this was in violation of his training contract, which was to expire on July 2009. The agreement also required the pilot to file his notice of resignation 120 days before the intended date of resignation. This requirement has since changed to 180 days after the Philippine Overseas Employment Administration (POEA) declared the job of pilots and aircraft mechanics as “mission critical skills.”

But since Lukban went AWOL (absent without official leave) immediately after tendering his resignation, the airline filed administrative and civil cases against the erring pilot.

The RTC’s order comes on the heels of PAL’s move to lodge multi-million peso damage suits against 27 pilots and first officers who resigned in August 2010 to take higher-paying jobs in the Middle East and elsewhere in Asia. So far, 16 pilots and first officers are facing charges of abandonment of duty and breach of contract before a Makati RTC.

The abrupt resignations forced PAL, which is currently mired in a labor dispute with its cabin crew and ground unions, to cancel some of its domestic flights last July.

Pirated pilot ordered to repay P5m

Jeremiah F. de Guzman and Eric Apolonio
October 12, 2010
Manila Standard Today

A MAKATI court has ordered a former Philippine Airlines pilot to pay the carrier almost P5 million for resigning abruptly and not reimbursing the airline the cost of his and his replacement’s training.
Judge Elpidio Calis of Branch 133 ordered Zenon Lukban to pay the airline P1.5-million plus interest, at the rate of six percent annually, to compensate it for his training at the PAL Aviation School in 2006.

Calis also ordered Lukban to pay the airline P1.87 million plus interest, the amount it spent to train his replacement, and P50,000 in attorneys’ fees
.
The court’s decision, dated Sept. 15, 2010, comes on the heels of the airline’s decision to file multi-million-peso damage suits against 27 pilots and first officers who resigned in August for higher-paying jobs abroad.

The court said the agreement signed by Lukban required him to work for the airline for five years in exchange for the cost of his training.

Lukban resigned on April 19, 2006, but the airline rejected it because it violated the terms of his contract, which would expire only in July 2009. Lukban went ahead.

“The court decision sends a strong message that contractual obligations must be honored and respected,” airline spokeswoman Cielo Villaluna said in a text message.

She refused to comment on the cases against 10 other pilots that the airline has sued following their resignations in August, when the carrier was forced to cancel flights to Hong Kong, Bacolod and Cebu. The airline said the case of the remaining 17 pilots would also be brought to court in the coming days.

The airline is in a dispute with its ground employees and cabin crew over its outsourcing plans and labor policies.

The PAL Employees Association and Flight Attendants’ and Stewards’ Association of the Philippines have filed separate notices of strike against the airline, but the Labor Department has assumed jurisdiction over both cases, he nce effectively stopping them from striking.

Tuesday, October 12, 2010

PAL employees ready for bargaining talks

Monday, 11 October 2010 00:00
The Manila Times
BY DARWIN G. AMOJELAR SENIOR REPORTER

The Philippine Airlines Employees Association (Palea) said it has submitted a collective bargaining agreement (CBA) to the management of Asia’s first airline carrier for the first time after the expiration of a moratorium imposed in 1998. Gerry Rivera, Palea president, reported that Jaime Bautista, Philippine Airlines (PAL) president and chief operating officer, received last week the CBA for the year 2008 to 2013.

“We expect management to respond to our proposal and negotiate in good faith,” Rivera said.

The PAL-Palea CBA was put on moratorium for 10 years in the wake of the bitter 1998 labor dispute that resulted in the strike of pilots and ground crew, and the closure of the national flag carrier.

A year after, the 69- year-old airline entered into corporate receivership with $2.12-billion total debts.

Rivera said that among the salient points of the CBA proposal is the updating and upgrading of the pay scale of employees.

“Too much wage distortion has been done to the pay scale so that there exists not only a severe contraction but to a certain extent an elimination of the quantitative differences between the job grades. We now aim to correct these distortions,” Rivera said.

He added that the proposal retains but revises the provision of the old CBA prohibiting contracting out of existing positions, jobs, divisions and departments presently occupied by present or future regular employees.

In addition, Rivera said the proposal improves on the old by explicitly barring outsourcing.

“This particular provision protects job security and union representation. The planned mass layoff of some 3,000 PAL workers is illegal because of this CBA provision,” Rivera said, adding that the CBA proposal contains provisions that enhance the retirement scheme.

PAL is concurrently negotiating a CBA with its flight crew.

The negotiations have, however, been deadlocked over disputes of retirement age and gender discrimination. Labor Secretary Rosalinda Baldoz has assumed jurisdiction over the dispute.

The PAL-Palea row over the mass layoff has similarly been assumed by the Labor department.

Applicants for cabin crew
Meanwhile, PAL said the current labor dispute with its cabin crew failed to scare applicants to work in the Asia’s first airline carrier.
\
Jose S.L. Uybarreta, PAL vice president for Human Resources Development, said for the first nine months of the year, PAL received close to 20,000 job applications.

”Our Talent Acquisition, Management and Retention Division accepts an average of 100 applicants a day. For August alone, a total of 3,520 applications were processed,” he said.

Of the total number of applicants, he said about half or 9,000 were seeking cabin crew positions.

“PAL recently added two brand new ‘Extended Range’ Boeing 777-300s to its fleet of wide-body aircraft. This led to the promotion of senior cabin crew and opened the door for the hiring and training of new ones,” he said.

Uybarreta said he believes PAL’s current labor problems with its cabin crew union have not deterred fresh graduates from applying with Asia’s first airline.

“PAL maintains a good and competitive track record when it comes to employee salaries and benefits. Hence, Fasap’s unfounded allegations of below-minimum wage pay and gender discrimination do not seem to hold water among aspiring crew members,” he said, referring to the Flight Attendants and Stewards Association of the Philippines.

”If PAL is discriminating or abusing its cabin crew, applicants should outright be disillusioned from entering PAL. But many real-life success stories of our flight attendants fuel dreams of starting a flying career with PAL,” Uybarreta added.

PAL wins key lawsuit vs. pilot

By Paolo Montecillo
Philippine Daily Inquirer
First Posted 23:35:00 10/11/2010

MANILA, Philippines—Flag-carrier Philippine Airlines (PAL) has won a P3.3-million lawsuit against a pilot that went rogue in 2006, setting a potential precedent that can help the airline win its more recent case involving several airmen that resigned abruptly earlier this year.

“For violating his contractual obligations and training agreement with PAL, a former PAL pilot was ordered by the Makati Regional Trial Court (RTC) to pay the flag-carrier millions of pesos in training fees and other penalties,” the company said Monday in a statement.

In a decision dated Sept. 15, Makati Judge Elpidio Calis ordered pilot Zenon Lukban to pay PAL P1.5 million plus interest for the cost of his training at the PAL Aviation School.

The pilot was also told to pay P1.87 million, plus interest, for the cost of training his replacement, as well as P50,000 in attorney’s fees.

Under their contracts with PAL, pilots are required to stay with the airline for at least five years after completing their training to make up for the money the company spent for the training.
However, PAL said Lukban left the airline in 2006, or just two years after completing his training.
Lukban also left the airline even after his resignation request was rejected by management.
Lukban then failed to show up for work right after tendering his resignation, forcing PAL to declare him absent without official leave.

PAL said the legal victory could help it win its lawsuits against several pilots who resigned abruptly last August, resulting in the cancellation of several domestic and international flights, affecting over 5,000 passengers.

At least 27 pilots are confirmed to have resigned from the airline since last August, with all of them said to have left PAL after finding better paying jobs abroad.

However, the Airline Pilots Association of the Philippines (Alpap), which claims to informally represent the resigned pilots, said the resignations were caused by PAL management’s move to transfer its employees to sister company Air Philippines, where salaries were lower.

PAL has since then said it would no longer transfer any of its pilots to Air Philippines, which is being groomed to compete head-on with Gokongwei-led Cebu Pacific—currently the country’s largest airline in terms of the number of passengers flown.

“The RTC’s order comes on the heels of PAL’s move to lodge multimillion-peso damage suits against 27 pilots and first officers who resigned in August to take higher-paying jobs,” the company said.
So far, complaints have already been filed against 16 of these pilots.

Pilot who went AWOL in ’06 told to pay PAL more than P3M

October 11, 2010
Aura Marie P. Dagcutan
Business World

A FORMER pilot of Philippine Airlines (PAL) has been ordered by the Makati Regional Trial Court (RTC) to pay the carrier more than P3 million for violating his contractual obligations and training agreement four years ago.

The Lucio C. Tan-led PAL disclosed the court decision yesterday, giving a preview of what awaits 26 pilots who abruptly resigned last July.

In a statement, the airline said Judge Elpidio Calis of the Makati RTC Branch 133 ordered former PAL pilot Zenon Lukban to pay up in a decision dated Sept. 15.

Mr. Lukban owes PAL P1.5 million and interest of 6% annually for violating his employment contract, the airline said.

“In addition, the respondent was held liable to reimburse PAL the amount of P1.87 million, plus interest, for the cost of training his replacement, as well as P50,000 in attorney’s fees,” the carrier said.

It added: “Judge Calis said one of the conditions of Lukban’s training agreement required him to serve the flag carrier for five years in exchange for the cost of training shouldered by PAL.”
PAL said the respondent wrote a letter of resignation to chief pilot Capt. Rolly C. Canlas on April 19, 2006.

“His resignation was to take effect on May 20, 2006. On May 8, 2006, PAL management officially rejected Lukban’s resignation saying this was in violation of his training contract which was to expire in July 2009,” PAL said.

“The agreement also required the pilot to file his notice of resignation 120 days before the intended date of resignation,” the airline said.

The notification requirement was later changed to 180 days after the Philippine Overseas Employment Administration declared that pilots and aircraft mechanics were providing “mission critical skills.”
“But since Mr. Lukban went absent without official leave immediately after tendering his resignation, administrative and civil cases were pursued by the airline against the erring pilot,” the airline said.
The Makati RTC’s order comes on the heels of PAL’s move to lodge multimillion-peso damage suits against 26 pilots and first officers who resigned in July to take higher-paying jobs in the Middle East and elsewhere in Asia.

So far, 16 pilots and first officers are facing charges of abandonment of duty and breach of contract before a Makati trial court.

PAL is demanding each of the defendants to pay P1.28 million for the cost of training, P1.87 million for the cost of training another pilot, P2 million in actual damages, P500,000 in exemplary damages, payment for additional cash advances, and costs of litigation.

The abrupt resignations forced PAL, which is currently mired in labor disputes with cabin crew and ground workers’ unions, to cancel some domestic flights last July.

Last week, last-ditch efforts to settle a row between PAL and its flight attendants’ and stewards’ union failed, forcing the Labor department to take over a collective bargaining deadlock to prevent a crippling strike.

The Labor department also assumed jurisdiction over a dispute with ground workers in April following PAL’s decision to outsource three non-core units to cut costs.

The PAL Employees Association submitted on Friday a proposal for a new collective bargaining agreement for the first time since a moratorium imposed in 1998, when a strike forced the carrier to shut down operations. --

Cabin Crew Aspirants Swamp PAL Offices

By EMMIE V. ABADILLA
October 11, 2010, 4:53pm

MANILA, Philippines —  Despite the Philippine Airlines (PAL)’s unsettled labor problems, aspiring cabin crew still flock in the flag carrier’s recruitment offices by the hundreds daily.

"For the first nine months of the year, we received 20,000 job applications. Our Talent Acquisition, Management and Retention Division accepts an average of 100 applicants a day. For August alone, we processed 3,520 applications," said Jose S.L. Uybarreta, PAL vice president for Human Resources Development.

Of the total number of applicants, he said about half or 9,000 were seeking cabin crew positions.
“PAL recently added two brand new ‘Extended Range’ Boeing 777-300s to its fleet of wide-body aircraft. This led to the promotion of senior cabin crew and opened the door for the hiring and training of new ones,” he explained.

Judging from the daily influx of applicants, Uybarreta believes that PAL’s current labor problems with its cabin crew union have not deterred fresh  graduates from applying with Asia’s first airline.
The labor case between PAL and its cabin crew union the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) is currently undergoing arbitration before the Department of Labor and Employment (DoLE).

This was after FASAP rejected management’s offer of R105-million in increased salary and rice allowances, expanded maternity-related benefits and extended retirement age of 45 from the original 40 for both male and female cabin crew. An assumption  order by the labor secretary banned the union from staging a strike.

“PAL maintains a good and competitive track record when it comes to employee salaries and benefits. Hence, FASAP’s unfounded allegations of below-minimum wage pay and gender discrimination do not seem to hold water among aspiring crew members,” Uybarreta stressed.
"If PAL is discriminating or abusing its cabin crew, applicants should outright be disillusioned from entering PAL. But many real-life success stories of our flight attendants fuel dreams of starting a flying career with PAL," he added.

Monday, October 11, 2010

Cabin crew aspirants still flock PAL, says flag carrier

INQUIRER.net First Posted 08:55:00 10/10/2010

MANILA, Philippines—Hundreds of aspiring cabin crew flock the recruitment offices of Philippine Airlines (PAL) every day in the hope of landing jobs in a company known for generous perks and travel opportunities, the flag carrier said in a statement in the midst of its labor woes.

"For the first nine months of the year, PAL received close to 20,000 job applications. Our Talent Acquisition, Management, and Retention Division accepts an average of 100 applicants a day. For August alone, a total of 3,520 applications were processed," said Jose S.L. Uybarreta, PAL vice president for Human Resources Development.

Of the total number of applicants, he said about half or 9,000 were seeking cabin crew positions. “PAL recently added two brand new ‘Extended Range’ Boeing 777-300s to its fleet of wide-body aircraft. This led to the promotion of senior cabin crew and opened the door for the hiring and training of new ones,” he said.

Judging from the daily influx of applicants, Uybarreta said he believes PAL’s current labor problems with its cabin crew union have not deterred fresh graduates from applying with Asia’s first airline.
The labor case between PAL and its cabin crew union, the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap), is currently undergoing arbitration before the Department of Labor and Employment (DoLE). The negotiation is stalled at management’s offer of P105-million in increased salary and rice allowances, expanded maternity-related benefits, and extended retirement age of 45 from the original 40 for both male and female cabin crew. An assumption order by the labor secretary banned the union from staging a planned strike.

“PAL maintains a good and competitive track record when it comes to employee salaries and benefits. Hence, Fasap’s unfounded allegations of below-minimum wage pay and gender discrimination do not seem to hold water among aspiring crew members,” he stressed.

"If PAL is discriminating and/or abusing its cabin crew, applicants should outright be disillusioned from entering PAL. But many real-life success stories of our flight attendants fuel dreams of starting a flying career with PAL," said Uybarreta.

He added that fresh college graduates from exclusive schools are also enticed, not just by the prospect of flying to different local and foreign destinations, but also by PAL's generous package of allowances and benefits.

He advised applicants to prepare before submitting their applications. He said PAL implements a strict recruitment and screening process. Those who pass the pre-screening are subjected to a panel interview, then undergo a battery of tests, including a crucial medical exam.

Saturday, October 9, 2010

PAL cabin crew union aborts strike preparations

By Jerome Aning
Philippine Daily Inquirer
First Posted 10/08/2010

MANILA, Philippines—The Philippine Airlines’ cabin crew union Thursday said it has aborted all its preparations for a strike after the Department of Labor and Employment (DoLE) took over the labor dispute at the Philippine Airlines.

In a phone interview, Flight Attendants and Stewards Association of the Philippines (FASAP) vice president Andy Ortega said the union received a copy of the DoLE’s order by fax late on Wednesday afternoon.

He said FASAP’s strike vote that has been set next week has been cancelled. The strike was supposed to be held either in the last week of October or first week of November.

The DoLE on Wednesday formally assumed jurisdiction over the labor dispute between FASAP and the PAL management. The dispute stemmed from the unresolved deadlock in the collective bargaining agreement negotiations between the union and the management.

In a statement, FASAP said it “will respect the authority of Secretary (Rosalinda) Baldoz to assume jurisdiction of the dispute, adding “the fight is far from over,” referring to its demands for the company to scrap its allegedly unfair retirement age policy and discrimination against female flight attendants.

FASAP abort strike preparations

October 8, 2010
Jerome Aning
Philippine Daily Inquirer

The Philippine Airlines' cabin crew union yesterday said it has aborted all its preparations for a strike after the Department of Labor and Employment (DoLE) took over the labor dispute at the Philippine Airlines.

In a phone interview, Flight Attendants and Stewards Association of the Philippines (FASAP) vice president Andy Ortega said the union received a copy of the DoLE's order by fax late on Wednesday afternoon.

He said FASAP's strike vote that has been set next week has been cancelled. The strike was supposed to be held either in the last week of October or first week of November.

The DoLE on Wednesday formally assumed jurisdiction over the labor dispute between FASAP and the PAL management. The dispute stemmed from the unresolved deadlock in the collective bargaining agreement negotiations between the union and the management.

In a statement, FASAP said it “will respect the authority of Secretary (Rosalinda) Baldoz to assume jurisdiction of the dispute, adding “the fight is far from over,” referring to its demands for the company to scrap its allegedly unfair retirement age policy and discrimination against female flight attendants.

Baldoz rules out strike at PAL

October 8, 2010
JC Bello Ruiz
Manila Bulletin

Department of Labor and Employment (DoLE) Secretary Rosalinda Baldoz yesterday ruled out a possible strike in the Philippine Airlines (PAL), saying that she does not foresee a defiance of the assumption of jurisdiction order she issued last Wednesday, prohibiting members of the Flight Attendants and Stewards Association of the Philippines (FASAP) from proceeding with the planned work stoppage.

Baldoz said FASAP has a very good history of complying with orders from the labor department.
“I don't forsee any defiance. Any actual strike is still to be declared, while I am deciding the case because FASAP has a very good history of complying with DoLE,” Baldoz told reporters in an interview at the sidelines of the town-hall meeting of President Aquino at the La Consolacion College in Mendiola, Manila.

The order prohibits FASAP from going on strike as those who would disobey the directive could lose their jobs.

Aquino had directed Baldoz to take over the labor dispute at the flag carrier.

She immediately took over settlement of the PAL conflict last Wednesday, noting that PAL is imbued with national interest and both the PAL management and FASAP have already expressed willingness to submit the case of arbitration.

“I have given them a 15-day non-extendable period for them to file position papers and submit replies. After that within a period of 30 days, the DoLE can decide the case for them,” she explained.
Asked how DoLE will make both parties meet halfway, Baldoz said: “As is said, arbitration can give way to any request of both parties to go back to the negotiating table and I will preside over the conciliation only on my level.”

“For now, all avenues are exhausted for settlement from both ends. Anytime they soften their stand, I can be very sensitive, and I can call back the parties to the negotiating table and the other situation is either one of them can request to, there are some possible avenues for settlement, in which case I can defer the decision,” she said.

Friday, October 8, 2010

'PAL attendants, stewards won't go on strike'

By Delon Porcalla (The Philippine Star) Updated October 08, 2010 12:00 AM

MANILA, Philippines - Labor Secretary Rosalinda Baldoz yesterday expressed confidence that members of the Flight Attendants and Stewards Association of the Philippines (FASAP) would not defy the order prohibiting them from going on strike because they have been compliant in the past.
“FASAP has a very good history of complying with DOLE (Department of Labor and Employment) orders. I don’t foresee any defiance, any actual strike. I believe no strike will be declared while I am deciding the case because they have a good track record based on DOLE records,” she said in a chance interview at the Mo. Consuelo Barcelo Theater at La Consolacion College.

Baldoz has recently been appointed in a permanent capacity by President Aquino.

DOLE has assumed jurisdiction over the labor dispute between the labor union and Philippine Airlines (PAL) to prevent flight attendants from going on strike.

If the union pushes through with the strike, the labor department will issue a return to work order. Defiance of the order will cause employees their jobs.

PAL and the union can return to negotiation through conciliation if any party raises new issues aside from previous concerns on the extension of the retirement age of female cabin crew and economic benefits.

The labor department has given both parties 15 days to file their position papers and replies, after which it will decide on the case within 30 days.

Despite the ongoing labor dispute between the flag carrier and its workers, the President said it is still premature to decide on the implementation of an open skies policy because the aviation market has not been upset by the dispute.

“It is not yet irreconcilable. There is no damage to the economy... We’re hoping this can be resolved and we won’t need to go into the open skies policy,” he said in a chance interview at the sidelines of the 10th National Philippines Employment Service Congress in Tagaytay City.

Labor dept. assumes jurisdiction over PAL-cabin crew row

Thursday, 07 October 2010 00:00
By Darwin G. Amojelar Reporter
THE MANILA TIMES

PHILIPPINE Airlines (PAL) on Wednesday assured its passengers of unhampered operations after the Department of Labor and Employment assumed jurisdiction over the flag-carrier’s labor dispute with its cabin crew union. In a statement, Cielo Villaluna, PAL spokesman, said that Labor Secretary Rosalinda Baldoz will assume jurisdiction over the PAL labor case.

On Tuesday, last-ditch talks between the management of PAL and Flight Attendants’ and Stewards’
Association of the Philippines (Fasap) broke down and the union said that they will stage their strike in the middle of October or the first week of November, which falls during the traditional All Saints’ Day vacation break.

Villaluna said that an assumption order from the Labor department has the force and effect of a status quo order, which means that Fasap cannot stage a strike or work stoppage while the labor case is being adjudicated.

At the same time, she said PAL management is also enjoined by the order from performing any act that could disturb prevailing conditions.

“Philippine Airlines is grateful to Labor Secretary Rosalinda Baldoz for putting public interest ahead of any particular group. Fasap’s repeated strike threats are a cause of grave concern for PAL passengers whose travel plans are being unfairly disrupted,” Villaluna said.

“Now FASAP is banned from staging a strike or any work stoppage, our passengers are assured of unhampered operations. We advise them to book early for their flights especially for the coming semestral break and All Saints/Souls Day holidays,” she added.

As the labor case is submitted for arbitration, PAL and Fasap will be asked to submit their position papers on three pending issues—economic package (or wage increase), retirement age and maternity/pregnancy-related benefits—for resolution by the Labor secretary.

PAL will show the Labor department that the airline’s P105-million salary increase and additional rice allocation offer are predicated on the company’s capacity to pay after P15-billion losses in the last two consecutive years.

Meanwhile, Villaluna said PAL’s proposal to change the retirement age to 45 from 40 is benchmarked against its competitors in the Southeast region and the airline industry in general, which puts a high premium on the image and physical fitness of frontline safety officers such as cabin crews.

She added that management’s offer of expanded maternity-related benefits is something Fasap should consider instead of rejecting PAL’s offers “lock stock and barrel.”

“We hope Secretary Baldoz would be able to judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scares away customers and investors,” Villaluna said.

Fasap warned
Baldoz warned that a strike move by Fasap would be declared illegal.

“They cannot conduct a strike right now or else it will be declared illegal,” she said during an interview over ABS-CBN.

She said that Fasap should still wait for the cooling-off period before they can hold a strike.

Under the Labor Code of the Philippines, a cooling-off period is necessary to give a chance to the warring parties to negotiate again.

Baldoz earlier said that the government can assume jurisdiction over the labor row if PAL management and Fasap fail to reach an agreement.

“Once I assume jurisdiction, ‘di puwedeng mag-stage ng strike. Ang nakataya dito ay public interest—iyong interes ng riding public. Kaya habang dinidesisyunan ko ang kaso, walang galawan [a strike can no longer be staged. What is at stake here is public interest—particularly the interest of the riding public. So while we are tackling the labor case, the warring parties should not make any punitive moves],” she stressed.

‘Dancing’ attendants
Meanwhile, a unique way to keep bored and tired eyes locked on an airline’s cabin crew during an in-flight safety demo has become the latest YouTube sensation from the Philippines.

Passengers traveling with budget carrier Cebu Pacific will soon be given safety instructions via a toe-tapping flight safety dance routine to the Lady Gaga tune “Just Dance.”

A test flight for the new safety demo, filmed by a stunned passenger, has gone viral on YouTube with over seven million hits in a week. It is the second major Filipino dance clip to become a viral YouTube hit, following a Michael Jackson-themed performance of tangerine prison suit-clad prisoners which first appeared in 2007.

At the end of the two-minute clip, passengers give the orange-clad cabin crew a round of applause—perhaps not the usual reaction to instructions about oxygen masks, lifejackets and how to find the exits.

Candice Iyog, the airline’s vice president for marketing, said it will roll out the dance on selected domestic and international flights later this month.

“We have always been a fun and very family-oriented company,” she told Agence France-Presse. “The reaction has been positive. The passengers did pay attention.”

The airline hired professional choreographers to teach hand picked female cabin crew to help turn passengers’ attention away from the windows.

Cebu Pacific is not the first airline willing to use its staff in unusual ways to keep the attention of its passengers.

In June 2009, Air New Zealand ran a safety video and ad campaign featuring naked employees, their modesty protected only by body paint and strategically placed seatbelts.

But the Cebu Pacific dance moves have gotten their share of detractors in the Philippines.

Several legislators and Fasap reacted in fury to the safety demo, saying it is demeaning to women.

The women’s political party Gabriela said the routine is “a cheap promotional gimmick” and branded the airline “a purveyor of sexism and machismo.”

And the Philippine Airlines cabin crew union said the video did not help the union’s campaign to lift a company policy that forces female flight attendants to retire at the age of 40.

“This gender-insensitive packaging is a throwback to the unenlightened past during the 50s and 60s when ‘stewardesses’ were made to wear hot pants and mini-skirts to appeal to the dominantly male business travelers,” it said.

Cebu Pacific serves the Philippines and East Asian destinations and is known for its cheap fares and token prizes awarded to passengers at in-flight parlor games.
With Reports From Jomar Canlas and AFP

DoLE takes over PAL row, warns vs work stoppage

By Jerome Aning
Philippine Daily Inquirer
First Posted 10/07/2010

MANILA, Philippines — With the government’s assumption of jurisdiction over the labor dispute at Philippine Airlines (PAL), any strike or work stoppage by its disgruntled flight attendants would be illegal, Labor Secretary Rosalinda Baldoz said Wednesday.

Baldoz said she would issue a return-to-work order if a strike occurs and warned union officers and workers that they would face penalties such as dismissal from employment if they initiate or participate in an illegal strike.

PAL management thanked the government for taking over the dispute and issued a statement Wednesday telling passengers that they “may now confidently firm up their travel plans” for the coming holidays.

The militant labor federation Kilusang Mayo Uno, on the other hand, blamed the labor department for the collapse of mediation talks between PAL management and the Flight Attendants and Stewards Association of the Philippines (FASAP) by undermining the workers’ main bargaining strength—their right to strike.

But Baldoz said she would resolve the dispute as soon as possible. She gave the company’s management and cabin crew union panels 10 days to submit their final position papers.
“After that, we’ll consider the case submitted for resolution. I will resolve the issues,” Baldoz told reporters.

Baldoz said her office will look into FASAP’s charges of gender discrimination in the company’s maternity and retirement policies.

Female members of FASAP complained they don’t have paid maternity leaves, while both male and female crew were forced to retire at the age of 40.

Baldoz said the period of resolution might be lengthened if the parties file supplemental pleadings and motions for reconsideration of other decisions that the Department of Labor and Employment (DoLE) may issue.

The Labor Code allows the secretary to take over all labor disputes in industries that are “indispensable to the national interest.”
PAL grateful

In a statement Wednesday, PAL spokesperson Cielo Villaluna said the company was “grateful” for the AJO because the looming strike caused grave concern among PAL clients.

“Since FASAP is banned from staging a strike or any work stoppage, our passengers are assured of unhampered operations. We advise them to book early for their flights especially for the coming semestral break and All Saints/Souls Day holidays,” she added.

Villaluna said PAL hoped Baldoz would “judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scare away customers and investors.”
KMU protests

KMU chair Elmer Labog said the government’s AJO was a clear message that the Aquino administration was “standing by the anti-worker and anti-women policies” in the Lucio Tan-owned flag carrier.

He said bargaining negotiations had virtually collapsed as early as Oct. 3 because Baldoz already announced DoLE’s readiness to issue an AJO.

“The government has undermined the flight attendants’ impending strike and threat of strike and has therefore seriously impaired their bargaining strength in the mediation talks,” Labog said.

Thursday, October 7, 2010

DOLE bars FASAP from going on strike

By Mayen Jaymalin (The Philippine Star) Updated October 07, 2010 12:00 AM

MANILA, Philippines - Labor Secretary Rosalinda Baldoz issued yesterday an order barring flight attendants and stewards of Philippine Airlines (PAL) from staging a strike.

Baldoz said she issued an assumption of jurisdiction order prohibiting members of the Flight Attendants and Stewards Association of the Philippines (FASAP) from proceeding with the planned work stoppage.

“If the cabin crew go on work stoppage as planned, it will be considered as an illegal strike since I have already assumed (jurisdiction) over the PAL labor dispute,” Baldoz said.

Baldoz said under the law, workers found guilty of mounting an illegal strike could lose their jobs.
The Labor chief said she immediately took over the labor dispute since PAL, being the country’s flag carrier, is imbued with national interest aside from the fact that both parties have expressed willingness to submit the case for arbitration.

“Aside from national interest, PAL also expressed willingness for the labor department to assume jurisdiction while FASAP interposed no objection to the manifestation, so I immediately took over the case,” Baldoz explained.

Baldoz said she gave both parties a non-extendable 10-day period upon receipt of the order to submit their respective positions and another non-extendable five-day period for the reply.

“After both parties have submitted their positions and reply, I will decide on the case,” Baldoz said.
FASAP announced their plan to mount a strike by the end of October or early November after their conciliation meetings with PAL management broke down.

Bob Anduiza, FASAP president, said the cabin crew were left with no other resort but to go on strike since PAL refused to heed their demand to remove discriminatory polices in their previous collective bargaining agreement (CBA).

Anduiza said FASAP’s position to increase the current 40 years retirement age of flight attendants and to remove other sexist and discriminatory policies is non-negotiable.

PAL management said they would just wait and abide by whatever decision the Department of Labor and Employment (DOLE) would render on the labor dispute.

FASAP has expressed willingness to abide by the government’s order preventing them from mounting a strike.

Anduiza said the union is obliged to abide by assumption of jurisdiction order issued by the DOLE.
“FASAP has not been officially informed of any order coming from the DOLE to supposedly assume jurisdiction of the labor dispute, but in the event that DOLE will prevent FASAP from exercising its lawful right to go on strike, the union will be obligated to respect this decision,” Anduiza said in a statement.

Anduiza expressed hope that Baldoz would fairly and immediately resolve the dispute, especially the gender and discrimination issues with regards to retirement age, pregnancy and maternity policies.
“We in FASAP sincerely hope that the DOLE will be fair and address the discrimination against female flight attendants whose only desire is to be respected and treated with dignity as Filipino workers,” he said.

Despite the efforts of labor officials to forge a compromise, Anduiza said PAL management refused to correct the firm’s discriminatory policies.

“Instead of taking the righteous path, PAL opted to insist on its hard line positions and pass the ball and its obligations to the discretion of the DOLE Secretary by asking the DOLE to assume jurisdiction of the dispute,” Anduiza said.

PAL spokesperson Cielo Villaluna said the airline’s passengers could now make their travel plans without fear of getting stranded because of the looming strike.

“Labor Secretary Rosalinda Baldoz has assumed jurisdiction over PAL’s labor case. An assumption order has the force and effect of a status quo order which means that FASAP cannot stage a strike or work stoppage while the labor case is being adjudicated,” Villaluna said.

Villaluna said Baldoz’s order also restrained PAL from performing any act that could disturb prevailing conditions.

“Philippine Airlines is grateful to Labor Secretary Rosalinda Baldoz for putting public interest ahead of any particular group. FASAP’s repeated strike threats are a cause of grave concern for PAL passengers whose travel plans are being unfairly disrupted,” Villaluna said.

Villaluna said passengers are now assured of unhampered operations.

“We advise them to book early for their flights especially for the coming semestral break and All Saints’/Souls’ Day holidays,” she added.

Villaluna said PAL would show DOLE that the airline’s P105-million salary increase and additional rice allocation offer is predicated on the company’s capacity to pay after P15-billion losses in the last two consecutive years.

Villaluna said PAL”s proposal to change the retirement age from 40 to 45 is benchmarked against its competitors in Southeast Asia and the airline industry in general, which puts a high premium on the image and physical fitness of frontline safety officers such as cabin crew.

Villaluna expressed hope that DOLE would be able to judiciously resolve the contentious issues at the soonest possible time so that PAL can operate smoothly and efficiently without threats of work stoppage that unnecessarily scare away customers and investors. With Mary Ann Ll. Reyes, Rudy Santos

PAL-union talks break down

Wednesday, 06 October 2010 00:00
By Darwin G. Amojelar, Senior Reporter
THE MANILA TIMES

TALKS to settle a dispute between Philippine Airlines (PAL) and its cabin crew union bogged down again on Tuesday, forcing the airline’s management to submit the case for arbitration to the Department of Labor and Employment.
In a statement, Cielo Villaluna, PAL spokesman, said that the Flights Attendants’ and Stewards’ Association of the Philippines (Fasap) “flatly rejected
PAL’s proposal to increase salaries and rice allowances by P105million, expanded pregnancy-related benefits and increased retirement age to 45 years old.”

With no agreement reached during Tuesday’s conciliation meeting, Villaluna added that PAL manifested willingness to submit the case for arbitration before the Labor department.

“This will enable parties to submit their respective positions to the Labor secretary who will then decide the case on the merits,” she explained.

Villaluna said that Fasap posed no objections to PAL’s manifestation but both parties agreed that any intervention by the Labor Secretary Rosalinda Baldoz would be “through an assumption of jurisdiction.”

“We believe that a strike is unlikely. Any strike outside of the parameters of law, there are dire penalties for that,” she warned.
With an assumption order, the warring parties are enjoined from performing any act that will exacerbate the situation such as a strike or lockout.

Issues for arbitration include the economic package, retirement age (anchored on mixed-crew complement) and pregnancy-related issues.
When sought for comment, Robert Anduiza, Fasap president, said that the last-ditch conciliation meeting ended in a deadlock after PAL maintained its hardline stance, refusing to address the discrimination issues against flight attendants.

“While PAL is trying to make itself look reasonable by supposedly offering a financial package, the truth is it is being made contingent on discriminatory policies on retirement,” Anduiza added.

He said that the Fasap strike might take place by the end of October or the first week of November.
“The union will now prepare for the holding of its strike, as mandated by law,” Anduiza added.

Impact on economy, tourism

Villaluna said that any work stoppage aimed at paralyzing PAL’s operations will have negative effects not just on the airline’s finances but also on the country’s domestic and international trade and tourism image.
PAL has been preparing contingency measures to cope with adverse effects of any possible labor strike.

“Fasap’s insistence on its original demands and continued refusal to present any counter-offer to PAL’s proposals prevented the talks from proceeding,” Villaluna said.

“It’s give-and-take in any negotiation. It’s very difficult to negotiate if the other party only wants things to go their way,” she added.
Villaluna said that PAL’s P105-million offer should be viewed in the context of the company’s huge financial losses in the last two years.

PAL, she added, even agreed to increase the retirement age for attendants to 45 in exchange for allowing junior cabin crew to fly international together with their senior counterparts.

“Management has bent backward to give part of Fasap’s demands but they want nothing short of their original demands,” Villaluna said.
Earlier, Baldoz declared that she would step in to avert Fasap’s work stoppage.

The Labor secretary stressed that PAL’s operations are imbued with national interest, hence the need to intervene in the dispute.
In August, 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.

with report from Jomar Canlas

DoLE assumes jurisdiction over PAL row, stops planned strike

Agence France-Presse
First Posted 10/06/2010

MANILA, Philippines—The government on Wednesday stopped a planned strike by Philippine Airlines cabin crew and ordered the union and the flag carrier to submit to arbitration, a union official said.

"This means we cannot pursue the process we have initiated, and at the same time the company will not be able to do anything against the union members," union leader Andy Ortega told Agence France-Presse after receiving a Department of Labor order.

The 1,600-member union had warned it would stage a walkout by the end of the month if the carrier did not raise pay and lift company policy that forces female attendants to retire when they turn 40.
Ortega said Labor Secretary Rosalinda Baldoz ordered the union and PAL to submit their positions to her within 10 days, and also gave each side five extra days to reply to the other's positions before she makes a ruling.

"We are now under compulsory arbitration," said Ortega, the vice president of the Flight Attendants Association of the Philippines.

The labor chief told Agence France-Presse it had no immediate comment.
Baldoz has previously warned that if this week's talks failed she would force both sides to submit to arbitration because a strike affecting the flag-carrier would be against the national interest.
PAL spokeswoman Cielo Villaluna said the management asked the labor department to arbitrate when the union rejected an offer to raise pay and food allowances, expand pregnancy-related benefits and push the retirement age to 45.

"This (arbitration) will enable parties to submit their respective positions to the labor secretary who will then decide the case on the merits," Villaluna said in a statement.

Villaluna said a cabin crew strike would have further impacted the loss-making airline's finances and affected the tourism industry.

The planned strike is the latest in a string of labor problems to hit the airline.
In August, 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.

Final mediation talks on PAL labor row fails

By Philip Tubeza, Norman Bordadora
Philippine Daily Inquirer
First Posted 10/06/2010

President Benigno Aquino III announced the government would assume jurisdiction over the labor dispute between Philippine Airlines (PAL) and its flight attendants’ union after final mediation talks collapsed Tuesday.

The President expressed optimism that Labor Secretary Rosalinda Baldoz could still settle the dispute even as the Flight Attendants and Stewards Association of the Philippines (FASAP) announced it would go on strike by the end of the month.

“The Labor Secretary will assume jurisdiction over the case,” Mr. Aquino told reporters, adding that there was no need to panic and allow foreign carriers to take over PAL’s routes.

Taking her cue, Labor Secretary Baldoz said she would make a decision on the case in five to 10 days.

Baldoz’s move would bar any strike in the flag carrier, whose operations are deemed imbued with “the national interests.”

PAL management and FASAP failed to reach an agreement in “last ditch” mediation hearings at the National Conciliation and Mediation Board regarding a new collective bargaining agreement that would include new maternity benefits for stewardesses and repeal the company’s mandatory retirement age of 40.

Both sides blamed each other for the impasse.

Baldoz noted that FASAP did not raise an objection when PAL manifested during Tuesday’s mediation hearing that the case be submitted to her for arbitration.

But during a press conference after the hearing, FASAP president Bob Anduiza said the union was opposed to PAL’s move to submit the case for government arbitration.

Anduiza said the union would hold a strike vote next week and then go on strike by the end of the month or the first week of November.

“The strike vote will start next week then there will be a seven-day waiting period, which is required by law. After that, we go on strike,” he said.

PAL: We’re prepared

PAL management insisted a strike was “very remote” because the labor secretary had already taken over the case.

However, PAL spokesperson Cielo Villaluna said the flag carrier was preparing its “contingency measures.”

“It is most unfortunate that no agreement was reached (Tuesday), the fifth round of talks. We believe however that there is light at the end of the tunnel and for this reason, PAL management manifested its willingness to submit the case for arbitration before the office of the labor secretary,” Villaluna said.

PAL attendants willing to heed a no-strike order

By Abigail Kwok
INQUIRER.net
First Posted 10/06/2010

MANILA, Philippines—The group of flight attendants protesting alleged unfair labor practices at the Philippine Airlines said Wednesday it would not push through with its planned strike should the Department of Labor decide against it.

"In the event that the DOLE will prevent the group from exercising its lawful right to go on strike, the union will be obligated to respect this decision," said Bob Anduiza, president of the Flight Attendants and Stewards Association of the Philippines (Fasap).

Anduiza's statement came a day after talks with the management of PAL ended in a deadlock, with the airline company not acceding to the requests of the labor group.

In Tuesday's meet, Fasap turned down PAL's offer of P105 million in salaries and allowances, expanded maternity benefits, and the increase of the retirement age from 40 to 45 years old.
In an earlier statement, PAL spokesperson Cielo Villaluna said PAL's monetary offer hould be viewed in the context of the company's "huge losses" in the past two years.

"Management has bent backwards to give part of Fasap's demands but they want nothing short of their original demands," she said.

Anduiza reiterated, however, that the labor union was not interested in money.
"It is about discrimination," he said.

Anduiza said the group had yet to receive any order from DOLE on its assumption of jurisdiction over the matter.

"Fasap hopes that she will resolve the dispute immediately, especially the gender and discrimination issues in retirement age, pregnancy and maternity policies," Anduiza said.

PAL flights green and go as DOLE bans cabin crew strike

by Philippine Airlines on Wednesday, October 6, 2010 at 5:17pm

Passengers of Philippine Airlines (PAL) may now confidently firm up their travel plans after the Department of Labor and Employment (DOLE) today assumed jurisdiction over the flag carrier’s labor dispute with its cabin crew union.

“Labor secretary Rosalinda Baldoz said in a radio interview that she will assume jurisdiction of the PAL labor case. An assumption order has the force and effect of a status quo order which means that FASAP (Flight Attendants’ and Stewards’ Association of the Philippines) cannot stage a strike or work stoppage while the labor case is being adjudicated,” PAL spokesperson Cielo Villaluna said.

At the same time, she said PAL management is also enjoined by the order from performing any act that could disturb prevailing conditions.

"Philippine Airlines is grateful to Labor Secretary Rosalinda Baldoz for putting public interest ahead of any particular group. FASAP’s repeated strike threats is a cause of grave concern for PAL passengers whose travel plans are being unfairly disrupted,” Villaluna said.

“Now FASAP is banned from staging a strike or any work stoppage, our passengers are assured of unhampered operations. We advise them to book early for their flights especially for the coming semestral break and All Saints/Souls Day holidays," she added.

As the labor case is submitted for arbitration, PAL and FASAP will submit their respective position papers on three pending issues – economic package (or wage increase), retirement age and maternity/pregnancy-related benefits – for resolution by the labor secretary.

PAL will show DOLE that the airline's P105-million salary increase and additional rice allocation offer is predicated on the company's capacity to pay after P15-billion losses in the last two consecutive years.

Meanwhile, Villaluna said PAL's proposal to change the retirement age to 45 from 40 is benchmarked against its competitors in the ASEAN region and the airline industry in general which puts a high premium on the image and physical fitness of frontline safety officers such as cabin crew.

She added management's offer of expanded maternity-related benefits is something FASAP should consider instead of rejecting PAL’s offers “lock stock and barrel.”

"We hope Secretary Baldoz would be able to judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scares away customers and investors, Villaluna said.

PAL urges cabin crew to settle as Labor chief takes over case

With an initial report from Radyo Inquirer
Aura Marie P. Dagcutan
Posted on 09:31 PM, October 06, 2010
BusinessWorld

FLAG CARRIER Philippine Airlines (PAL) yesterday assured customers operations would not be affected with the Labor secretary set to take over a collective bargaining deadlock with cabin crew to prevent a crippling strike.
“Labor Secretary Rosalinda D. Baldoz said in a radio interview she will assume jurisdiction of the PAL labor case. An assumption order has the force and effect of a status quo order which means that Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) cannot stage a strike or work stoppage while the labor case is being adjudicated,” said Cielo C. Villaluna, PAL spokeswoman.

“PAL is grateful to Labor Secretary Baldoz for putting public interest ahead of any particular group. FASAP’s repeated strike threats are a cause of grave concern for PAL passengers whose travel plans are being unfairly disrupted.”

Ms. Villaluna said PAL management would also be enjoined by the order from “any act that could disturb prevailing conditions.”

With the labor case submitted for arbitration, PAL and FASAP must submit position papers on three pending collective bargaining issues -- the economic package or wage increase, retirement age, and maternity/pregnancy-related benefits.

“PAL will show [the Labor department] that the airline’s P105-million salary increase and additional rice allocation offer is predicated on the company’s capacity to pay after P15-billion losses in the last two consecutive years,” Ms. Villaluna said.

Ms. Villaluna said PAL’s proposal to change the retirement age to 45 from 40 years old was benchmarked against competitors in the Southeast Asian region and the airline industry in general, which puts a “high premium on the image and physical fitness” of frontline safety officers such as cabin crew members.

Management’s offer of expanded maternity-related benefits is something FASAP should consider instead of rejecting the offers “lock stock and barrel,” she added.

“We hope Secretary Baldoz would be able to judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scare away customers and investors,” she said.

On Tuesday, last-ditch efforts to settle a row between PAL and its flight attendants’ and stewards’ union failed.

FASAP wants the retirement age fixed at 60 and a new collective bargaining agreement, opposing PAL’s offer of a one-time package to cover the absence of an agreement between 2007 and 2010. The group also said that if it were to accept the one-time package, the amount should be raised to P250 million.

On Saturday, Ms. Villaluna said the gross monthly pay of a PAL cabin crew member ranges from P33,000 to P75,000, inclusive of productivity pay and other allowances. “A domestic crew earns between P34,619 to P37,619 per month, including productivity pay, transportation allowance and rice allocation. An international cabin attendant receives P50,741 to P60,136, while a flight purser gets P67,880 to P73,570,” she said.

“While this salary range may be modest compared to the payscale of giant carriers abroad, this is no small amount by Philippine standards,” she said. --

PAL union inches closer to a strike

October 6, 2010
Joyce Pangco PaƱares, Jeremiah de Guzman, Vito Barcelo
Manila Standard Today

THE Labor Department will assume jurisdiction over the dispute between Philippine Airlines and its cabin crew union after a mediation meeting ended in yet another deadlock, President Benigno Aquino III said Tuesday.

“Let us not panic. Let us not assume that PAL will be on strike in the next few days,” Mr. Aquino said after hearing of the stalemate.

But he toned down a threat to adopt an open-skies policy in case the labor trouble at the flag carrier disrupted its operations.

“We are not yet feeling the anticipated damage to the economy by the loss of carrier capacity,” Mr. Aquino said.

“We’re hoping this can be resolved and we won’t need to go into the open skies policy.”
Earlier, the airline’s management said it would submit the case for arbitration to Labor Secretary Rosalinda Baldoz after the union rejected its proposal to increase salaries and rice allowance by P105 million, expand pregnancy-related benefits, and increase the retirement age of female cabin crew to 45.

“With no agreement reached during today’s conciliation meeting, PAL manifested willingness to submit the case for arbitration,” airline spokeswoman Cielo Villaluna said.

“This will enable the parties to submit their positions to the Labor secretary, who will then decide the case on the merits.”

The Flight Attendants and Stewards Association of the Philippines posed no objection to government intervention.

Once the Labor Department assumes jurisdiction, the union may not strike and the management may not impose a lockout. The issues for arbitration include the economic package, the retirement age and pregnancy.

Villaluna said any work stoppage aimed at paralyzing Philippine Airlines’ operations would hurt not just the airline’s finances but also the country’s domestic and international trade and tourism. The airline started preparing contingency plans after the union filed a notice of strike with the Labor Department last month. The union said it would strike toward the end of October or in the first week of November.

Villaluna said the union’s insistence on its original demands and refusal to present any counter-offers to the management’s proposals kept the talks from proceeding.

“It’s give and take in any negotiation. It’s very difficult to negotiate if the other party only wants things to go their way,” Villaluna said.

She said PAL’s P105-million offer should be viewed in the context of the company’s financial losses in the last two years. The airline even agreed to increase the retirement age to 45 in exchange for allowing junior cabin crew to fly international routes together with their senior counterparts.
“Management has bent backwards to give part of [the union’s] demands, but they want nothing short of their original demands,” Villaluna said.

Earlier, Baldoz said she would step in to avert a strike at the airline, adding its operations were “imbued with national interest.”

Amid the airline’s labor woes, its competitor Cebu Pacific announced it was in urgent need of 300 flight attendants.

A company statement said the airline’s recruitment team would accommodate walk-in interviews from 9 a.m. to 3 p.m. Wednesday at the Crowne Plaza Galleria Manila Hotel.

No flight disruptions – PAL

October 6, 2010
Fil C. Sionil
Manila Bulletin

Philippine Airlines (PAL) management yesterday assured the riding public that there will be no disruptions in flight services despite the impasse on its collective bargaining agreement (CBA) with the Flight Attendants and Stewards Association of the Philippines (FASAP).

“Our operations will continue. There will be no disruptions in our flights,” PAL President Jaime Bautista told the Manila Bulletin shortly after negotiations with FASAP bogged down with both parties taking a hard stance on three major issues – economics, retirement age, and gender discrimination.
The Department of Labor and Employment (DoLE) mediated between PAL management and FASAP but was unsuccessful in getting the two groups to agree on these three issues.

“We did not agree because we both did not change our stance on economics, retirement age, and gender discrimination,” Bautista said.

As a result, Bautista disclosed PAL and FASAP signified their “manifestation to submit for arbitration” the case to Labor Secretary Rosalinda Baldoz. “Both of us agreed to into arbitration case.”

The arbitration paves the way for the Labor secretary to “assume jurisdiction” over the CBA case, specifically perusing the three contentious issues with fine tooth comb.

“Arbitration prevents both parties from performing or resorting to any acts that would exacerbate the situation. This means there will be no strike or lockout,” Bautista pointed out.

Earlier, the 1,600 strong FASAP had filed a notice that it will go on strike before the end of the month should the October 5 meeting fails to resolve any of the issues at hand.

Though this is nothing new for the management of the flag-carrier as it has undergone this process with the PAL Employees Association (PALEA), it will be the first time that it will go into arbitration with FASAP.

Under the process, both parties will be required to submit their positions on issues such as paid maternal leave, the mandatory company policy for female air hostesses to retire at the age of 40.

DoLE Assumes Jurisdiction of PAL Impasse

By SAMUEL P. MEDENILLA
October 6, 2010, 6:14pm
Manila Bulletin

MANILA, Philippines — The Department of Labor and Employment (DoLE) has issued an assumption of jurisdiction (AOJ) order over the labor dispute between the Philippine Airlines (PAL) and its flight crew barring the possibility of a strike.

Labor and Employment Secretary Rosalinda Baldoz said in an interview on Wednesday that she issued the AOJ after the mediation meeting between PAL management and the Flight Attendant’s and the Stewards’ Association of the Philippines (FASAP) collapsed.

“I have considered the nation’s interest and the willingness of both parties in submitting their case to DoLE in issuing the assumption of jurisdiction order,” Baldoz said.

The AOJ will prohibit FASAP from going on strike and will maintain the status quo over the labor dispute until DoLE issues a resolution over the case.

Baldoz, who was recently appointed by President Benigno S. Aquino III in a permanent capacity as labor secretary, said that if FASAP still pushes through with its demonstration, which can be declared illegal, its members could face dismissal.

She also said DoLE will give both parties 10 days upon receipt of the AOJ to submit their position papers to the labor department.

Another five days will also be allotted after their initial submission for both parties to reply on issues raised by their opposing group.

“Unless there are new developments that will come out in the process of assumption and compulsory arbitration, the case will have to be resolved through a decision not through a settlement,” Baldoz said in a earlier radio interview.

Meanwhile, despite receiving a strike ban, FASAP said in a statement said that it is willing to abide by DoLE’s arbitration.

“If the decision to resolve the dispute is passed on to the good Labor Secretary Rosalinda Baldoz's jurisdiction, then FASAP hopes that she will resolve the dispute immediately, especially the gender and discrimination issues in retirement age, pregnancy, and maternity policies,” FASAP president Robert Anduiza said.

FASAP filed a motion for strike at the National Conciliation and Mediation Board last September 9 after negotiations for a collective bargaining agreement with the PAL management ended with a deadlock.

Among the issues contested on their meetings were the flight crews’ economic benefits, pregnancy and maternity leave, and early retirement age.

Goverment bans planned PAL strike—union

Agence France-Presse
First Posted 18:08:00 10/06/2010

MANILA, Philippines - The government on Wednesday banned a planned strike by Philippine Airlines cabin crew and ordered the union and the flag carrier to submit to arbitration, a union official said.

"This means we cannot pursue the process we have initiated, and at the same time the company will not be able to do anything against the union members," union leader Andy Ortega told Agence France-Presse after receiving a labour ministry order.

Wednesday, October 6, 2010

DOLE Secretary to Handle PAL Labor Issue

October 6, 2010, 8:08am
Manila Bulletin

MANILA, Philippines (Xinhua) - Philippine President Benigno S. Aquino III said Tuesday that Labor Secretary Rosalinda Baldoz will assume jurisdiction of the labor row between flag carrier Philippine Airlines (PAL) and its cabin crew union after the last ditch conciliation talks bogged down.
Aquino said in a press briefing that the riding public should not panic since the planned strike of the Flight Attendants and Stewards Association of the Philippines (FASAP) will not immediately take place.

"The DOLE Secretary will assume jurisdiction, but we should not panic. Let us not think that tomorrow or the day after tomorrow, the PAL strike will happen," he said.

Aquino expressed hope that the labor dispute could still be resolved during the 30-day period.He said that his administration is not yet thinking of implementing the open skies policy as this is still being studied.

"We are not yet in an irreconcilable (situation). There is no anticipated damage yet on the economy by the lost of the carrier capacity," the President explained.

Aquino earlier threatened that the implementation of the open skies policy could be hastened if PAL and FASAP failed to resolve their dispute.

The 1,600-FASAP members have been raising issues on retirement age and financial benefits in their collective bargaining agreement. The PAL management offered a counter proposal, which the union members turned down.

PAL Employees Going on Strike this October

October 6, 2010, 7:57am
Manila Bulletin

MANILA, Philippines (Xinhua) - The Department of Labor and Employment-National Conciliation and Mediation Board's (DOLE-NCMB) last ditch effort to reconcile the differences between flag carrier Philippine Airlines (PAL) management and its cabin crew union on labor issues failed on Tuesday.

In a statement, the Flight Attendants and Stewards Association of the Philippines (FASAP) said that it will push with its planned strike by the end of October and first week of November.

"The union will now prepare for the holding of its strike as mandated by law," FASAP said.
The group said the conciliation meeting ended in a deadlock after PAL maintained its hardline stance, refusing to address the discrimination issues against flight attendants.

"While PAL is trying to make themselves look reasonable by supposedly offering a financial package, the truth is it is being made contingent on discriminatory policies on retirement," the 1, 600-FASAP members said.

The PAL management is preparing its manifestation to DOLE Secretary Rosalinda Baldoz for her to assume jurisdiction of the PAL labor row, PAL Spokesperson Cielo Villaluna said.
Villaluna said with labor chief's assumption of jurisdiction this means that FASAP could not push with its planned strike.

"Hopefully the labor secretary will assume jurisdiction of the case," she said.
Villaluna said that PAL is also preparing for contingency measures like endorsing their local passengers to Air Philippines Express, an affiliate of PAL.

PAL flight attendants ready to stage strike

By Mayen Jaymalin (The Philippine Star) Updated October 06, 2010 12:00 AM

MANILA, Philippines - Restive flight attendants of Philippine Airlines (PAL) are poised to strike following the collapse of conciliation talks with management.

Cielo Villaluna, PAL spokesperson, said the flag carrier might use the cabin crew or even aircraft of sister-company Air Philippines in the event of a strike.

But she maintained that the possibility of strike is remote since the labor dispute between PAL management and the Flight Attendants and Stewards Association of the Philippines (FASAP) has already been submitted for arbitration to the Secretary of the Department of Labor and Employment (DOLE).

“It is very unfortunate that no agreement has been reached, but both PAL and FASAP have expressed willingness to submit the case for arbitration and we are confident that the Labor Secretary would be able to resolve PAL’s differences with FASAP,” Villaluna said.

The 1,600-member FASAP is demanding a pay raise, paid maternity leave and an end to a company policy that forces female cabin crew to retire at the age of 40.

“We believe that a strike is unlikely. Any strike outside of the parameters of law, there are dire penalties for that,” Villaluna warned.

With the case now under arbitration, Villaluna said Labor Secretary Rosalinda Baldoz might issue an assumption of jurisdiction order and decide on the case.

She said that during negotiations with FASAP, the PAL management reiterated its offer of a P105-million financial package and an adjustment of the retirement age for flight attendants from 40 to 45 years.

“FASAP has remained hard-line on its position, thus resulting in an impasse, but we will wait for the DOLE to immediately decide on our request for arbitration,” she pointed out.

Despite the impasse, Villaluna said PAL operations remain normal. “While the labor dispute is happening, we would like to assure our passengers that our daily flights remain normal and no mass action is expected,” Villaluna said.

After the negotiations ended in a deadlock, FASAP president Bob Anduiza said the union would prepare for the holding of a strike vote as mandated by law. He said they might strike by the end of the month or early November.

Anduiza argued that PAL management had insisted on a financial settlement without addressing the discrimination issue affecting flight attendants.

“After five meetings with the management, it is very clear that PAL will not change its position. They kept on offering financial package but refused to address the discrimination issue,” Anduiza explained.
“FASAP may be willing to negotiate its position on the financial package, but not the discrimination issue,” he added.

He said PAL was dangling money to cover up its discriminatory policies.
“This isn’t about money. This is about discrimination,” he said. 

No open skies

It’s premature for the government to resort to “open skies” even with a looming PAL strike, according to President Aquino.

“It’s not an irreconcilable case and we don’t anticipate damage to the economy by the loss of carrier capacity,” Mr. Aquino told reporters on the sidelines of the 10th National Philippines Employment Service Congress at the Taal Vista Hotel in Tagaytay City.

“We’re hoping this can be resolved and we won’t need to go into the open skies policy. It will be studied completely,” he said.

“Let’s not think there will be strike at PAL in a day or two.”
At MalacaƱang, deputy presidential spokesperson Abigail Valte said Mr. Aquino’s stepping into the issue would only be a last resort.

She said DOLE’s Baldoz was “very capable” of resolving the dispute between PAL management and FASAP.

“Let us give them the chance to reach an agreement among themselves. Let us just wait for the last possible opportunity before the government assumes jurisdiction, through the secretary of labor,” Valte said.

“I know that Secretary Baldoz is on top of the situation and that she can handle it very well,” she added.

The President hinted earlier that he might be forced to allow foreign carriers to come in to ensure unhampered air travel in the event of a PAL strike.

An open skies policy, which is widely seen to boost tourism, would deregulate air traffic in the country and allow more airlines to service the Manila route.

PAL and other local carriers have been contesting the policy, citing its harmful effects on the local airline industry.

“If it is necessary, we will do it to minimize disruption to the riding public,” Mr. Aquino said. With Delon Porcalla