Philippine Daily Inquirer
Business
By the Staff
First Posted 21:12:00 03/29/2011
Missed opportunity
MEMBERS of Philippine Airlines’ cabin crew may have missed out on a chance to serve the country’s OFWs. Biz Buzz learned that during the recent repatriation of Libya-based workers, PAL deployed as crew members several line administrators and inflight trainors for their 27-hour rescue flights to and from Greece. The reason: management was concerned that regular cabin crew may suddenly disembark and leave passengers on board should they exceed—even by a fraction of an hour—their union-mandated tours of duty.
In recent months, many passengers were driven up the wall by cancellations caused by cabin crews refusing to serve on flights due to a union campaign for strict collective bargaining agreement compliance. Were they part of the crews’ adherence to the CBA provisions or an attempt to spite management? Hmmm.
The crews’ grievances notwithstanding, some passengers (who feel shortchanged) say cabin crews—like pilots—have an obligation to the riding public. They say pilots’ and crew members’ acts to spite the airline’s management do a great disservice to the passengers who, ultimately, pay for their salaries.—Daxim L. Lucas
Thursday, March 31, 2011
Tuesday, March 29, 2011
Planes will fly, PAL assures public
Philippine Daily Inquirer
March 29, 2011
By Philip C. Tubeza
MANILA, Philippines—Philippine Airlines (PAL) Monday assured the public that contingency measures were in place to “keep its airplanes flying” should its ground crew union go on strike.
PAL spokesperson Cielo Villaluna said flights would continue “on schedule” while all ticket, sales and airport offices would remain open even if the PAL Employees Association (PALEA) goes on strike.
“Our interline airline partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” Villaluna said in a statement.
She said that PALEA represented only a fraction of PAL’s 7,000-strong work force. The union had said that it could go on strike as early as April 2.
Villaluna warned that a strike, if declared illegal by the authorities, could lead to the forfeiture of the striking workers’ benefits, “including those ordered by the Office of the President.”
PAL issued the warning as it submitted Monday its counter-proposal—which included a wage increase—to a three-year collective bargaining agreement (CBA) with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for human resources.
“The amounts of P750 for the 1st year, P1,500 for the 2nd year and another P1,500 for the 3rd year are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said, referring to a pay hike for the workers.
On Friday, Malacañang upheld the decision of the Department of Labor and Employment (DoLE) allowing PAL to outsource three non-core units.
The national flag carrier noted that it was PALEA that had sought the President’s intervention, “and when the decision did not favor them, the union rejects the decision even the additional benefits granted to them.”
Earlier, PAL president Jaime J. Bautista said the outcome of Malacañang’s mediation in the spin-off issue “has a material impact on the next PAL-PALEA CBA.”
In an indignation rally on Mendiola Monday, PALEA members lambasted President Benigno Aquino III and Executive Secretary Paquito Ochoa for the Palace decision to uphold the PAL outsourcing plan, saying that it would lead to the mass layoff of 2,600 PAL employees.
“In the decision that he penned, Ochoa exposed who the real boss of this government is. It is (PAL owner) Lucio Tan, not the Filipino people. This decision ends the myth of P-Noy’s ‘Kayo ang boss ko’ slogan,” said Gerry Rivera, PALEA president and vice chair of the Partido ng Manggagawa (PM).
Rivera said some 200 PALEA members and supporters from PM and the anti-contractualization coalition Kontra assembled at Morayta in Manila and then marched on Mendiola.
They carried placards and streamers saying “Lucio Tan: No. 2 richest Filipino, No. 1 workers’ enemy,” “Sa desisyon ng Malacañang, may bagong mansion ba si Ochoa? (With Malacanang’s decision, will Ochoa have a new mansion)” and “Si Lucio Tan ang boss ko–P-noy (Lucio Tan is my boss–P-noy).”
PALEA said it had started the countdown to its first nationwide strike since the crippling 1998 PAL work stoppage.
The ban on a strike at PAL ends on April 1, seven days after PALEA submitted the results of the strike vote. An overwhelming 95 percent of PALEA members who participated in the strike poll voted yes compared to the 86 percent yes in the strike vote conducted last December.
“In drafting the decision as the little president, Ochoa undermined the Constitution, ILO conventions and the PAL-PALEA CBA which all guaranteed job security and the right to bargain of workers,” Rivera said.
“In the decision, Ochoa found utterly nothing wrong in PAL’s contractualization scheme and he turned a blind eye to all the evidence on PAL’s profitable operations. We will not be surprised if a second glass mansion is the reason behind this decision,” he added. Philip C. Tubeza
March 29, 2011
By Philip C. Tubeza
MANILA, Philippines—Philippine Airlines (PAL) Monday assured the public that contingency measures were in place to “keep its airplanes flying” should its ground crew union go on strike.
PAL spokesperson Cielo Villaluna said flights would continue “on schedule” while all ticket, sales and airport offices would remain open even if the PAL Employees Association (PALEA) goes on strike.
“Our interline airline partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” Villaluna said in a statement.
She said that PALEA represented only a fraction of PAL’s 7,000-strong work force. The union had said that it could go on strike as early as April 2.
Villaluna warned that a strike, if declared illegal by the authorities, could lead to the forfeiture of the striking workers’ benefits, “including those ordered by the Office of the President.”
PAL issued the warning as it submitted Monday its counter-proposal—which included a wage increase—to a three-year collective bargaining agreement (CBA) with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for human resources.
“The amounts of P750 for the 1st year, P1,500 for the 2nd year and another P1,500 for the 3rd year are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said, referring to a pay hike for the workers.
On Friday, Malacañang upheld the decision of the Department of Labor and Employment (DoLE) allowing PAL to outsource three non-core units.
The national flag carrier noted that it was PALEA that had sought the President’s intervention, “and when the decision did not favor them, the union rejects the decision even the additional benefits granted to them.”
Earlier, PAL president Jaime J. Bautista said the outcome of Malacañang’s mediation in the spin-off issue “has a material impact on the next PAL-PALEA CBA.”
In an indignation rally on Mendiola Monday, PALEA members lambasted President Benigno Aquino III and Executive Secretary Paquito Ochoa for the Palace decision to uphold the PAL outsourcing plan, saying that it would lead to the mass layoff of 2,600 PAL employees.
“In the decision that he penned, Ochoa exposed who the real boss of this government is. It is (PAL owner) Lucio Tan, not the Filipino people. This decision ends the myth of P-Noy’s ‘Kayo ang boss ko’ slogan,” said Gerry Rivera, PALEA president and vice chair of the Partido ng Manggagawa (PM).
Rivera said some 200 PALEA members and supporters from PM and the anti-contractualization coalition Kontra assembled at Morayta in Manila and then marched on Mendiola.
They carried placards and streamers saying “Lucio Tan: No. 2 richest Filipino, No. 1 workers’ enemy,” “Sa desisyon ng Malacañang, may bagong mansion ba si Ochoa? (With Malacanang’s decision, will Ochoa have a new mansion)” and “Si Lucio Tan ang boss ko–P-noy (Lucio Tan is my boss–P-noy).”
PALEA said it had started the countdown to its first nationwide strike since the crippling 1998 PAL work stoppage.
The ban on a strike at PAL ends on April 1, seven days after PALEA submitted the results of the strike vote. An overwhelming 95 percent of PALEA members who participated in the strike poll voted yes compared to the 86 percent yes in the strike vote conducted last December.
“In drafting the decision as the little president, Ochoa undermined the Constitution, ILO conventions and the PAL-PALEA CBA which all guaranteed job security and the right to bargain of workers,” Rivera said.
“In the decision, Ochoa found utterly nothing wrong in PAL’s contractualization scheme and he turned a blind eye to all the evidence on PAL’s profitable operations. We will not be surprised if a second glass mansion is the reason behind this decision,” he added. Philip C. Tubeza
On eve of strike, PAL says will keep flying
Business Mirror
March 29, 2011
By S. Fabunan, E. Torres
IN a bid to prevent a possible work stoppage and make sure Philippine Airlines (PAL) operations remain continuous, Labor Secretary Rosalinda Baldoz on Monday called the flag carrier’s management and its union leaders to a crucial make-or-break meeting. She has not yet, however, set the date of the meeting, seen as a last-ditch effort to forestall a strike, which the union said on Monday would most likely start on April 2 .
“I am calling on both parties to a conference for possible settlement. We will exhaust all options to settle the issue,” said Baldoz.
Meantime, PAL assured air travelers on Monday they have contingency measures to keep their airplanes flying in case the PAL Employees Association (Palea) goes on strike.
PAL said it will follow published schedules and all ticket offices, and that sales and airport facilities in Metro Manila, and the provinces, and stations abroad will maintain regular business operations.
“Our interline airline-partners, as well as augmentation forces from management, are on standby to ensure that our operations are not disrupted in case Palea members walk out,” said Cielo Villaluna, PAL spokesman.
She added that ground workers represent only a fraction of the company’s 7,000-strong work force.
PAL also submitted on Monday its counterproposal consisting of salary increases for the three years of a three-year collective bargaining agreement (CBA) that is in a stalemate and a cause of the labor unrest.
“In good faith, PAL management fulfilled its commitment to submit today a counterproposal, proof of management’s sincerity and willingness to open negotiations with Palea,” said Jose S.L. Uybarreta, vice president for human resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year—are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
On Friday Malacañang upheld the decision of the Department of Labor and Employment (DOLE) recognizing the legality of PAL’s spinoff of three noncore units.
PAL said it was Palea who sought the President’s intervention and when the decision did not favor them, the union rejected the decision and even the additional benefits granted them.
Earlier, PAL president Jaime J. Bautista said the outcome of Malacañang’s mediation over the spinoff issue has a material impact on the next CBA. He said union leaders should give Malacañang due respect when it finally resolved the spinoff issue.
Questioning the basis and validity of Palea’s recent strike vote, PAL also maintained that there was no reason for the holding of the referendum given management’s willingness to open CBA negotiations.
Earlier, Palea claimed management refused to negotiate a new CBA.
Under the Labor Code, the secretary of Labor has the power to assume jurisdiction over a labor dispute or issue a return-to-work order in cases of labor disputes imbued with national consequence.
Those who refused to heed the DOLE return-to-work orders, like the PAL pilots in 1998, were terminated by operation of the law and were unable to avail themselves of separation and/or retirement benefits.
Restive PAL employees, meanwhile, condemned the Palace decision to allow the mass layoff of around 2,600 employees after they resorted to Palace intervention in the planned spinoff of three work units of the airlines.
Gerry Rivera, Palea president, said the decision of the Office of the President written by Executive Secretary Paquito Ochoa violated the Constitution, conventions of the International Labor Organization and the CBA between PAL employees and management that guarantees workers’ right to job security and right to bargain.
Rivera reiterated they are readying a nationwide strike to oppose the decision of Malacañang allowing the mass layoff. He said the ban on strikes at PAL ends on April 1. At least 95 percent of the Palea members voted yes in the strike poll compared with the 86-percent yes in the strike vote in December last year.
He said the Palace’s decision siding with management runs counter to President Aquino’s campaign slogan “Kayo ang boss ko.”
“In the conflict between the second-richest Filipino and thousands of PAL workers, P-Noy chose to side with the capitalist rather the workers,” said Rivera. “For President Aquino, it is okay for PAL to retrench 2,600 workers at a time when the company will earn $1.6 billion in annual profit and when thousands of OFWs are returning home to escape unrest and disaster abroad. What is this government’s employment policy? Demolish all the regular jobs and turn workers into contractuals!”
He said PAL employees will hold a big rally on Friday in Malacañang and parallel protest actions in the airports of Cebu, Davao, Bacolod and General Santos City. --S. Fabunan, E. Torres
March 29, 2011
By S. Fabunan, E. Torres
IN a bid to prevent a possible work stoppage and make sure Philippine Airlines (PAL) operations remain continuous, Labor Secretary Rosalinda Baldoz on Monday called the flag carrier’s management and its union leaders to a crucial make-or-break meeting. She has not yet, however, set the date of the meeting, seen as a last-ditch effort to forestall a strike, which the union said on Monday would most likely start on April 2 .
“I am calling on both parties to a conference for possible settlement. We will exhaust all options to settle the issue,” said Baldoz.
Meantime, PAL assured air travelers on Monday they have contingency measures to keep their airplanes flying in case the PAL Employees Association (Palea) goes on strike.
PAL said it will follow published schedules and all ticket offices, and that sales and airport facilities in Metro Manila, and the provinces, and stations abroad will maintain regular business operations.
“Our interline airline-partners, as well as augmentation forces from management, are on standby to ensure that our operations are not disrupted in case Palea members walk out,” said Cielo Villaluna, PAL spokesman.
She added that ground workers represent only a fraction of the company’s 7,000-strong work force.
PAL also submitted on Monday its counterproposal consisting of salary increases for the three years of a three-year collective bargaining agreement (CBA) that is in a stalemate and a cause of the labor unrest.
“In good faith, PAL management fulfilled its commitment to submit today a counterproposal, proof of management’s sincerity and willingness to open negotiations with Palea,” said Jose S.L. Uybarreta, vice president for human resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year—are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
On Friday Malacañang upheld the decision of the Department of Labor and Employment (DOLE) recognizing the legality of PAL’s spinoff of three noncore units.
PAL said it was Palea who sought the President’s intervention and when the decision did not favor them, the union rejected the decision and even the additional benefits granted them.
Earlier, PAL president Jaime J. Bautista said the outcome of Malacañang’s mediation over the spinoff issue has a material impact on the next CBA. He said union leaders should give Malacañang due respect when it finally resolved the spinoff issue.
Questioning the basis and validity of Palea’s recent strike vote, PAL also maintained that there was no reason for the holding of the referendum given management’s willingness to open CBA negotiations.
Earlier, Palea claimed management refused to negotiate a new CBA.
Under the Labor Code, the secretary of Labor has the power to assume jurisdiction over a labor dispute or issue a return-to-work order in cases of labor disputes imbued with national consequence.
Those who refused to heed the DOLE return-to-work orders, like the PAL pilots in 1998, were terminated by operation of the law and were unable to avail themselves of separation and/or retirement benefits.
Restive PAL employees, meanwhile, condemned the Palace decision to allow the mass layoff of around 2,600 employees after they resorted to Palace intervention in the planned spinoff of three work units of the airlines.
Gerry Rivera, Palea president, said the decision of the Office of the President written by Executive Secretary Paquito Ochoa violated the Constitution, conventions of the International Labor Organization and the CBA between PAL employees and management that guarantees workers’ right to job security and right to bargain.
Rivera reiterated they are readying a nationwide strike to oppose the decision of Malacañang allowing the mass layoff. He said the ban on strikes at PAL ends on April 1. At least 95 percent of the Palea members voted yes in the strike poll compared with the 86-percent yes in the strike vote in December last year.
He said the Palace’s decision siding with management runs counter to President Aquino’s campaign slogan “Kayo ang boss ko.”
“In the conflict between the second-richest Filipino and thousands of PAL workers, P-Noy chose to side with the capitalist rather the workers,” said Rivera. “For President Aquino, it is okay for PAL to retrench 2,600 workers at a time when the company will earn $1.6 billion in annual profit and when thousands of OFWs are returning home to escape unrest and disaster abroad. What is this government’s employment policy? Demolish all the regular jobs and turn workers into contractuals!”
He said PAL employees will hold a big rally on Friday in Malacañang and parallel protest actions in the airports of Cebu, Davao, Bacolod and General Santos City. --S. Fabunan, E. Torres
PAL assures public flights normal
The Philippine Star
March 29, 2011
MANILA, Philippines - Philippine Airlines (PAL) assured its passengers and customers yesterday that contingency measures are in place to keep its airplanes flying in case members of the PAL Employees Association (PALEA) stage an illegal strike.
PAL stressed its flights will continue to be operated according to published schedules, while all ticket offices and other sales and airport facilities in Metro Manila, the provinces and stations abroad will maintain regular business operations.
“Our interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” said Cielo Villaluna, PAL spokesperson. She stressed that ground workers represents only a fraction of PAL’s 7,000-strong workforce.
The company said that a strike, if declared illegal by proper authorities, could lead to the forfeiture of striking workers’ benefits, including those ordered by the Office of the President.
Meanwhile, PAL submitted its counter-proposal consisting of salary increases for the first three years of a three-year collective bargaining agreement (CBA) to be negotiated by PAL with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for Human Resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
Last Friday, Malacañang upheld the decision of the Department of Labor and Employment (DOLE) upholding the legality of PAL’s spin-off of three non-core units.
PAL stressed that it was PALEA who sought the President’s intervention and when the decision did not favor them, the union rejected the decision, even the additional benefits granted to them.
Earlier, PAL president Jaime Bautista said the outcome of Malacañang’s mediation over the spin-off issue has a material impact on the next PAL-PALEA CBA. He said PALEA leaders should give Malacañang due respect when it finally resolved the spin-off issue.
Questioning the basis and validity of PALEA’s recent strike vote, PAL also maintained that there was no reason for the holding of the referendum given management’s willingness to open CBA negotiations.
March 29, 2011
MANILA, Philippines - Philippine Airlines (PAL) assured its passengers and customers yesterday that contingency measures are in place to keep its airplanes flying in case members of the PAL Employees Association (PALEA) stage an illegal strike.
PAL stressed its flights will continue to be operated according to published schedules, while all ticket offices and other sales and airport facilities in Metro Manila, the provinces and stations abroad will maintain regular business operations.
“Our interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” said Cielo Villaluna, PAL spokesperson. She stressed that ground workers represents only a fraction of PAL’s 7,000-strong workforce.
The company said that a strike, if declared illegal by proper authorities, could lead to the forfeiture of striking workers’ benefits, including those ordered by the Office of the President.
Meanwhile, PAL submitted its counter-proposal consisting of salary increases for the first three years of a three-year collective bargaining agreement (CBA) to be negotiated by PAL with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for Human Resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
Last Friday, Malacañang upheld the decision of the Department of Labor and Employment (DOLE) upholding the legality of PAL’s spin-off of three non-core units.
PAL stressed that it was PALEA who sought the President’s intervention and when the decision did not favor them, the union rejected the decision, even the additional benefits granted to them.
Earlier, PAL president Jaime Bautista said the outcome of Malacañang’s mediation over the spin-off issue has a material impact on the next PAL-PALEA CBA. He said PALEA leaders should give Malacañang due respect when it finally resolved the spin-off issue.
Questioning the basis and validity of PALEA’s recent strike vote, PAL also maintained that there was no reason for the holding of the referendum given management’s willingness to open CBA negotiations.
PAL assures normal operations, submits counter proposal
The Philippine Star
March 29, 2011
By Mayen Jaymalin
MANILA, Philippines - Philippine Airlines (PAL) assured yesterday contingency measures are in place to keep the airline flying even if some employees push through with their planned strike.
PAL gave the assurance after submitting to the Department of Labor and Employment (DOLE) a proposed salary increase for members of the PAL Employees Association (PALEA).
Cielo Villaluna, PAL spokesperson, said all flights will continue as scheduled while all ticket offices and other sales and airport facilities in Metro Manila, the provinces and stations abroad will maintain regular business operations.
“Our interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” Villaluna said while noting that ground workers represent only a fraction of PAL’s 7,000-strong workforce.
At the same time, Villaluna reported that PAL already submitted to the DOLE’s National Conciliation and Mediation Board a collective bargaining agreement (CBA) counter-proposal consisting of salary increases for the first three years.
“PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for human resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year – are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
Last Friday, Malacañang upheld a previous DOLE decision allowing PAL’s planned spin-off of three non-core units.
March 29, 2011
By Mayen Jaymalin
MANILA, Philippines - Philippine Airlines (PAL) assured yesterday contingency measures are in place to keep the airline flying even if some employees push through with their planned strike.
PAL gave the assurance after submitting to the Department of Labor and Employment (DOLE) a proposed salary increase for members of the PAL Employees Association (PALEA).
Cielo Villaluna, PAL spokesperson, said all flights will continue as scheduled while all ticket offices and other sales and airport facilities in Metro Manila, the provinces and stations abroad will maintain regular business operations.
“Our interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out,” Villaluna said while noting that ground workers represent only a fraction of PAL’s 7,000-strong workforce.
At the same time, Villaluna reported that PAL already submitted to the DOLE’s National Conciliation and Mediation Board a collective bargaining agreement (CBA) counter-proposal consisting of salary increases for the first three years.
“PAL management fulfilled its commitment to submit today a counter-proposal, proof of management’s sincerity and willingness to open negotiations with PALEA,” said Jose S.L. Uybarreta, PAL vice president for human resources.
“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year – are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.
Last Friday, Malacañang upheld a previous DOLE decision allowing PAL’s planned spin-off of three non-core units.
PAL assures normal flights; CBA counter-proposal submitted
Manila Bulletin
March 29, 2011
By Samuel P. Medenilla and Madel R. Sabater
MANILA, Philippines – Philippine Airlines (PAL) management Monday assured the public that contingency measures are in place to keep its operations normal should PAL Employees Association (PALEA) stage an illegal strike.
“PAL lights will continue to be operated according to published schedules while all ticket offices and other sales and airport facilities in Metro Manila, the provinces, and stations abroad will maintain regular business operations,” Cielo Villaluna, PAL spokesperson, said.
Villaluna said PAL’s “interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out.”
She stressed that ground workers represent only a fraction of PAL's 7,000-strong workforce.
PAL said there was no reason for the holding of the referendum given management's willingness to open Collective Bargaining Agreement (CBA) negotiations.
Last week, Malacañang affirmed the decision of the Department of Labor and Employment (upholding the legality of PAL's spin-off of three non-core units, which apparently was unacceptable to PALEA members.
PAL President Jaime J. Bautista said the outcome of the Palace’s mediation over the outsourcing bid has a material impact on the next PAL-PALEA CBA as he urged the union leaders to give Malacañang due respect when it finally resolved the spin-off issue.
According to Villaluna, benefits, including hike in gratuity pay to P100,000 from P50,000 as ordered by the Office of the President, will be forfeited should PALEA proceed with its planned walkout and this will be declared illegal by authorities.
PAL Vice President for Human Resources Jose S.L. Uybarreta disclosed that management submitted Monday its counter-proposal consisting of salary increases for the first three years of a three-year CBA to be negotiated by PAL with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management's sincerity and willingness to open negotiations with PALEA,” Uybarreta said.
Considering the prevailing economic environment, Uybarreta said “the amounts of P750 for the 1st year, P1,500 for the 2nd year, and another P1,500 for the 3rd year – are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008.”
Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office, meanwhile, said the interest of both parties were considered when Malacañang came up with its decision. (Samuel P. Medenilla and Madel R. Sabater)
March 29, 2011
By Samuel P. Medenilla and Madel R. Sabater
MANILA, Philippines – Philippine Airlines (PAL) management Monday assured the public that contingency measures are in place to keep its operations normal should PAL Employees Association (PALEA) stage an illegal strike.
“PAL lights will continue to be operated according to published schedules while all ticket offices and other sales and airport facilities in Metro Manila, the provinces, and stations abroad will maintain regular business operations,” Cielo Villaluna, PAL spokesperson, said.
Villaluna said PAL’s “interline airline-partners as well as augmentation forces from management are on standby to ensure that our operations are not disrupted in case PALEA members walk out.”
She stressed that ground workers represent only a fraction of PAL's 7,000-strong workforce.
PAL said there was no reason for the holding of the referendum given management's willingness to open Collective Bargaining Agreement (CBA) negotiations.
Last week, Malacañang affirmed the decision of the Department of Labor and Employment (upholding the legality of PAL's spin-off of three non-core units, which apparently was unacceptable to PALEA members.
PAL President Jaime J. Bautista said the outcome of the Palace’s mediation over the outsourcing bid has a material impact on the next PAL-PALEA CBA as he urged the union leaders to give Malacañang due respect when it finally resolved the spin-off issue.
According to Villaluna, benefits, including hike in gratuity pay to P100,000 from P50,000 as ordered by the Office of the President, will be forfeited should PALEA proceed with its planned walkout and this will be declared illegal by authorities.
PAL Vice President for Human Resources Jose S.L. Uybarreta disclosed that management submitted Monday its counter-proposal consisting of salary increases for the first three years of a three-year CBA to be negotiated by PAL with PALEA.
“In good faith, PAL management fulfilled its commitment to submit today a counter-proposal, proof of management's sincerity and willingness to open negotiations with PALEA,” Uybarreta said.
Considering the prevailing economic environment, Uybarreta said “the amounts of P750 for the 1st year, P1,500 for the 2nd year, and another P1,500 for the 3rd year – are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008.”
Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office, meanwhile, said the interest of both parties were considered when Malacañang came up with its decision. (Samuel P. Medenilla and Madel R. Sabater)
PAL dangles P2.75b package, new jobs to head off walkout
Manila Standard Today
March 28, 2011
By Joyce Pangco Pañares
PHILIPPINE Airlines has prepared a P2.75-billion separation package for its 2,600 employees who are facing retrenchment, company spokesman Cielo Villaluna said over the weekend.
The employees working in airport services, in-flight catering, and call center operations would also be guaranteed employment under a third- party service provider, she said.
Those involved in airport services and in-flight catering would be absorbed by Sky Logistics Inc. and Sky Kitchen Inc., respectively, which are owned by Cebu businessman Manuel Osmeña, who also owned Hilton Cebu, Villaluna said.
The workers in the carrier’s call center operations would have guaranteed employment with SPI Global Inc., which is controlled by businessman Manuel V. Pangilinan.
Villaluna dismissed the claim by PAL Employees Association president Gerry Rivera that Osmeña was a cousin of airline chairman Lucio Tan, and that the two companies were fronts.
“The goal is to sit down with the union leaders and dialog with them to ensure that this essential restructuring effort is carried out in a smooth and orderly manner,” Villaluna said.
She noted that the spin-off package rose to P2.75 billion after Malacañang ordered a doubling of the gratuity to P100,000 from P50,000 for each employee.
President Benigno Aquino III on Friday approved the mass lay-offs at the flag carrier, upholding the Labor Department’s ruling approving the spin-off of some of its services provided the employees received their gratuity and a separation pay of 125 percent.
Rivera said the union was prepared to fight it out before the Court of Appeals and to strike if necessary.
“We tried going through the so-called straight path of [President Aquino], but the truth is, Malacañang is the second home of Lucio Tan,” said Rivera, who is also vice chairman of Partido ng Manggagawa.
“We will push through with our strike on the first day of April. We will also bring the matter to the Court of Appeals.”
The union called on its 3,500 members to prepare for the first nationwide strike since the 1998 work stoppage that crippled the carrier.
March 28, 2011
By Joyce Pangco Pañares
PHILIPPINE Airlines has prepared a P2.75-billion separation package for its 2,600 employees who are facing retrenchment, company spokesman Cielo Villaluna said over the weekend.
The employees working in airport services, in-flight catering, and call center operations would also be guaranteed employment under a third- party service provider, she said.
Those involved in airport services and in-flight catering would be absorbed by Sky Logistics Inc. and Sky Kitchen Inc., respectively, which are owned by Cebu businessman Manuel Osmeña, who also owned Hilton Cebu, Villaluna said.
The workers in the carrier’s call center operations would have guaranteed employment with SPI Global Inc., which is controlled by businessman Manuel V. Pangilinan.
Villaluna dismissed the claim by PAL Employees Association president Gerry Rivera that Osmeña was a cousin of airline chairman Lucio Tan, and that the two companies were fronts.
“The goal is to sit down with the union leaders and dialog with them to ensure that this essential restructuring effort is carried out in a smooth and orderly manner,” Villaluna said.
She noted that the spin-off package rose to P2.75 billion after Malacañang ordered a doubling of the gratuity to P100,000 from P50,000 for each employee.
President Benigno Aquino III on Friday approved the mass lay-offs at the flag carrier, upholding the Labor Department’s ruling approving the spin-off of some of its services provided the employees received their gratuity and a separation pay of 125 percent.
Rivera said the union was prepared to fight it out before the Court of Appeals and to strike if necessary.
“We tried going through the so-called straight path of [President Aquino], but the truth is, Malacañang is the second home of Lucio Tan,” said Rivera, who is also vice chairman of Partido ng Manggagawa.
“We will push through with our strike on the first day of April. We will also bring the matter to the Court of Appeals.”
The union called on its 3,500 members to prepare for the first nationwide strike since the 1998 work stoppage that crippled the carrier.
PAL assures normal operations despite union's strike vote
Manila Bulletin
March 29, 2011
By Emmie V. Abadilla
MANILA, Philippines – Philippine Airlines (PAL) shrugged off its ground union’s claim that majority of its members voted in favor of a work stoppage and assured passengers its operations will continue normally.
PAL Vice President for Human Resources Jose S.L. Uybarreta asserted that government-brokered conciliation meetings are still ongoing.
In fact, he said, PAL management informed the National Conciliation and Mediation Board (NCMB) that it would submit its Collective Bargaining Agreement (CBA) counter-proposal on March 28, as earlier committed.
With the ongoing talks, he stressed that PAL sees no reason for the strike vote called by the union Wednesday and denied the PAL Employees Association (PALEA)’s accusation that the airline is refusing to bargain with its union. PAL is willing to open negotiations, name its panel of negotiators and submit its counter-proposal, Uybaretta maintained.
While PAL believes that the union’s planned strike has no legal basis, the flag carrier is not leaving everything to chance. “We are making the necessary preparations to prevent flight disruptions and passenger inconvenience,” he stressed.
“PAL respects and strictly adheres to the legal process. We are open to negotiating a new collective bargaining agreement, but it cannot include the spin-off issue because the same is still pending before Malacanang,” Uybarreta added.
However, PALEA has been repeatedly using threats of work stoppage to pressure management to enter into a new CBA negotiation even when their appeal against the airline’s planned spin off remains pending before Malacanang.
It doesn’t help that the strike threats are coming at a time when PAL is in the middle of delivering relief goods for Japan and bracing for possible repatriation of Filipino Overseas Workers, if and when full-scale conflicts erupt in North Africa and the Middle East, the official lamented.
March 29, 2011
By Emmie V. Abadilla
MANILA, Philippines – Philippine Airlines (PAL) shrugged off its ground union’s claim that majority of its members voted in favor of a work stoppage and assured passengers its operations will continue normally.
PAL Vice President for Human Resources Jose S.L. Uybarreta asserted that government-brokered conciliation meetings are still ongoing.
In fact, he said, PAL management informed the National Conciliation and Mediation Board (NCMB) that it would submit its Collective Bargaining Agreement (CBA) counter-proposal on March 28, as earlier committed.
With the ongoing talks, he stressed that PAL sees no reason for the strike vote called by the union Wednesday and denied the PAL Employees Association (PALEA)’s accusation that the airline is refusing to bargain with its union. PAL is willing to open negotiations, name its panel of negotiators and submit its counter-proposal, Uybaretta maintained.
While PAL believes that the union’s planned strike has no legal basis, the flag carrier is not leaving everything to chance. “We are making the necessary preparations to prevent flight disruptions and passenger inconvenience,” he stressed.
“PAL respects and strictly adheres to the legal process. We are open to negotiating a new collective bargaining agreement, but it cannot include the spin-off issue because the same is still pending before Malacanang,” Uybarreta added.
However, PALEA has been repeatedly using threats of work stoppage to pressure management to enter into a new CBA negotiation even when their appeal against the airline’s planned spin off remains pending before Malacanang.
It doesn’t help that the strike threats are coming at a time when PAL is in the middle of delivering relief goods for Japan and bracing for possible repatriation of Filipino Overseas Workers, if and when full-scale conflicts erupt in North Africa and the Middle East, the official lamented.
Monday, March 28, 2011
A strike now may just kill PAL
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) Updated March 28, 2011
I was afraid something like this will happen. As I watched the 70th anniversary presentation of Philippine Airlines that recalled memorable events in its corporate history, I felt a foreboding that this could be its last hurrah. Asia’s First Airline, like the country it proudly represents abroad, needs to do serious rethinking of where it stands, where it wants to go and how to get there.
Like the country, PAL was ahead of almost everybody in the region. But somewhere along the way the airline was, like the country, badly served by the politicians who led Asia’s first Republic. Not only did they abuse the airline to attain their jetsetter reputations, they forced the airline to hire their protégés to the point that it became, and still is, overstaffed and uncompetitive.
Today, the airline is already in trouble even without the strike threat. Fuel prices are going to the stratosphere. Competition is getting fiercer than it ever was. World economies are still under threat of a double dip recession. And it isn’t easy to have big overhead costs and try to recover increased operating costs in a very competitive environment.
When the pilots of PAL last had a strike, the airline still enjoyed a lion’s share of the domestic market. Because PAL was then still a near monopoly, the strike was a pain to the public. Government had to resort to extraordinary measures like allowing Cathay Pacific to operate domestic routes to minimize the strike’s negative impact on the economy. But today, PAL has very strong domestic competitors. In fact, Cebu Pacific, one of the many new local airlines, now carries more passengers between our islands than PAL.
There are other airlines too that will be ready to pick up the slack left by a Philippine Airlines grounded by a strike. I was just talking last week with Alfred Yao, the owner of Zest Air, and he impressed me as an entrepreneur with an aggressiveness that could make his airline a strong competitor for PAL not just in the domestic market but regionally as well.
Mr. Yao told me he was buying more Airbus 320s to serve local and international routes. He said he now has twice weekly flights on the Shanghai-Kalibo route, increasing to four weekly in June, opening Boracay to an increasingly prosperous Chinese market.
Zest Air also flies the Seoul-Kalibo route four times a week and increasing to daily by June, with planeloads of vacationing Korean tourists. Zest also flies Pusan-Kalibo twice a week now.
And he told me Zest Air will also fly between Beijing and Palawan starting late April, opening a new direct destination for Chinese tourists. Zest will also fly between Beijing and Kalibo by late June. Also by June, Zest Air will be flying to Singapore, joining PAL, Cebu Pacific, SEAir-Tiger Air and AirPhil Express in linking the city state with the Philippines.
Mr. Yao said he is not afraid of P-Noy’s pocket open skies even if he also shares the demand for reciprocity aired by his competitors. But instead of complaining about it, he is trying to move ahead of the foreign airlines who may decide to take advantage of the new E.O. That explains his decision to bring international passengers directly to Palawan.
Then there is AirAsia that will establish a local subsidiary with majority control under Tonyboy Cojuangco. SEAir, on the other hand, is tying up with Tiger Air, a Singaporean budget carrier designed for tough competition. And there is AirPhil Express, practically a sister airline of PAL but one whose business model and staff structure are geared to enable it to compete in today’s turbulent skies.
There is no doubt about how tough competition is these days. Let us listen to Alfred Yao of Zest Air. “We have very good service,” he said, emphasizing the airline’s so-called value proposition for its clients. “Our people are very friendly. Price-wise, we provide very affordable prices that are within reach of Filipinos. Despite stiff competition, we are doing pretty well.”
As for Cebu Pacific, it flew 10.5 million passengers last year. This year, it expects that figure to go up to 12 million, of which 10 million would be using the NAIA Terminal 3, almost using up the terminal’s rated capacity of 13 million.
Despite the brave words of its executives during their 70th anniversary celebration, Philippine Airlines is in serious crisis. It needs a new business model in order to survive. Like what happened to Japan Airlines, PAL needs to reorganize to make it more nimble in today’s environment. It can no longer afford to have three times the number of employees Cebu Pacific has.
The restructuring of PAL that its union is vigorously objecting to is a survival response. This is probably why P-Noy upheld the position of the Department of Labor allowing it to do so. As I had previously written here, the employees union should learn from the example of the American automotive unions. When it became clear that GM, Ford and Chrysler would go belly up unless the unions worked with management and government to save the car companies, the United Auto Workers or UAW decided that cooperation was the better deal.
The union may be overestimating the importance of the airline’s survival to its owners. I see a very strong incentive on the part of the owners to let the airline fold up if the strike materializes and successfully grounds its flights. Most of its aircrafts are on lease anyway, and the lease can be transferred to AirPhil Express as it takes over PAL’s old routes.
On the marketing side, the worse part of a strike threat is the reluctance of passengers to do advance booking, something that helps the airline plan better. A passenger will not risk buying a ticket for a flight two months or more ahead of time if there is any danger that a strike may strand him here or in a foreign port. That crank call on a San Francisco bound PAL flight, hopefully, isn’t related to the labor problems of the airline because pranks like that can ruin an airline’s reputation.
It is crunch time for PAL and every stakeholder must decide if they want to save the airline or bury it for good. Government should not be expected to save PAL in the mistaken notion that its survival is in the national interest. Unlike in the past, if PAL goes belly up, there are enough competitors to take over its market and provide the service almost as if nothing happened.
The world has changed drastically in recent years. Job security can no longer be guaranteed in a globalized world where stiff competition is the name of the game. PAL is still organized under the rules of a more genteel world that had long ago changed. The new rules of the game in today’s business world may not be for the better in humane terms but businesses can only play by the new rules or perish.
A strike at this time may kill the airline. That does not do the union members any good. And while the owners may get hurt as well, they are in a better position to bounce back quickly as their Plan B, Airphil Express, is already up and running.
About 2,600 rank and file employees will be retrenched under the plan but more than 4,000 will retain their jobs in an airline that is better equipped to compete. And for those who will be retrenched, they will get financial and other benefits and be first in line for jobs in the outsource company that will take over the functions. That sounds better than killing the airline and almost 7000 employees losing their jobs. If the airline keels over because of the strike, all 7000 employees fall in line with other creditors for any financial claims.
Hopefully reason rather than emotion prevails so that Asia’s First Airline can still proudly fly the national colors in all corners of the world. For the PAL union to strike now is like cutting their nose to spite their face. It just doesn’t work for their benefit or anyone else’s other than PAL’s competitors who will gladly divide among themselves the still formidable market share of Asia’s First.
Those were the days
Jose Villaescusa sent this one.
LIFE was really so much simpler then... when Apple and Blackberry were just fruits, while Samsung was Delilah’s lover!
I was afraid something like this will happen. As I watched the 70th anniversary presentation of Philippine Airlines that recalled memorable events in its corporate history, I felt a foreboding that this could be its last hurrah. Asia’s First Airline, like the country it proudly represents abroad, needs to do serious rethinking of where it stands, where it wants to go and how to get there.
Like the country, PAL was ahead of almost everybody in the region. But somewhere along the way the airline was, like the country, badly served by the politicians who led Asia’s first Republic. Not only did they abuse the airline to attain their jetsetter reputations, they forced the airline to hire their protégés to the point that it became, and still is, overstaffed and uncompetitive.
Today, the airline is already in trouble even without the strike threat. Fuel prices are going to the stratosphere. Competition is getting fiercer than it ever was. World economies are still under threat of a double dip recession. And it isn’t easy to have big overhead costs and try to recover increased operating costs in a very competitive environment.
When the pilots of PAL last had a strike, the airline still enjoyed a lion’s share of the domestic market. Because PAL was then still a near monopoly, the strike was a pain to the public. Government had to resort to extraordinary measures like allowing Cathay Pacific to operate domestic routes to minimize the strike’s negative impact on the economy. But today, PAL has very strong domestic competitors. In fact, Cebu Pacific, one of the many new local airlines, now carries more passengers between our islands than PAL.
There are other airlines too that will be ready to pick up the slack left by a Philippine Airlines grounded by a strike. I was just talking last week with Alfred Yao, the owner of Zest Air, and he impressed me as an entrepreneur with an aggressiveness that could make his airline a strong competitor for PAL not just in the domestic market but regionally as well.
Mr. Yao told me he was buying more Airbus 320s to serve local and international routes. He said he now has twice weekly flights on the Shanghai-Kalibo route, increasing to four weekly in June, opening Boracay to an increasingly prosperous Chinese market.
Zest Air also flies the Seoul-Kalibo route four times a week and increasing to daily by June, with planeloads of vacationing Korean tourists. Zest also flies Pusan-Kalibo twice a week now.
And he told me Zest Air will also fly between Beijing and Palawan starting late April, opening a new direct destination for Chinese tourists. Zest will also fly between Beijing and Kalibo by late June. Also by June, Zest Air will be flying to Singapore, joining PAL, Cebu Pacific, SEAir-Tiger Air and AirPhil Express in linking the city state with the Philippines.
Mr. Yao said he is not afraid of P-Noy’s pocket open skies even if he also shares the demand for reciprocity aired by his competitors. But instead of complaining about it, he is trying to move ahead of the foreign airlines who may decide to take advantage of the new E.O. That explains his decision to bring international passengers directly to Palawan.
Then there is AirAsia that will establish a local subsidiary with majority control under Tonyboy Cojuangco. SEAir, on the other hand, is tying up with Tiger Air, a Singaporean budget carrier designed for tough competition. And there is AirPhil Express, practically a sister airline of PAL but one whose business model and staff structure are geared to enable it to compete in today’s turbulent skies.
There is no doubt about how tough competition is these days. Let us listen to Alfred Yao of Zest Air. “We have very good service,” he said, emphasizing the airline’s so-called value proposition for its clients. “Our people are very friendly. Price-wise, we provide very affordable prices that are within reach of Filipinos. Despite stiff competition, we are doing pretty well.”
As for Cebu Pacific, it flew 10.5 million passengers last year. This year, it expects that figure to go up to 12 million, of which 10 million would be using the NAIA Terminal 3, almost using up the terminal’s rated capacity of 13 million.
Despite the brave words of its executives during their 70th anniversary celebration, Philippine Airlines is in serious crisis. It needs a new business model in order to survive. Like what happened to Japan Airlines, PAL needs to reorganize to make it more nimble in today’s environment. It can no longer afford to have three times the number of employees Cebu Pacific has.
The restructuring of PAL that its union is vigorously objecting to is a survival response. This is probably why P-Noy upheld the position of the Department of Labor allowing it to do so. As I had previously written here, the employees union should learn from the example of the American automotive unions. When it became clear that GM, Ford and Chrysler would go belly up unless the unions worked with management and government to save the car companies, the United Auto Workers or UAW decided that cooperation was the better deal.
The union may be overestimating the importance of the airline’s survival to its owners. I see a very strong incentive on the part of the owners to let the airline fold up if the strike materializes and successfully grounds its flights. Most of its aircrafts are on lease anyway, and the lease can be transferred to AirPhil Express as it takes over PAL’s old routes.
On the marketing side, the worse part of a strike threat is the reluctance of passengers to do advance booking, something that helps the airline plan better. A passenger will not risk buying a ticket for a flight two months or more ahead of time if there is any danger that a strike may strand him here or in a foreign port. That crank call on a San Francisco bound PAL flight, hopefully, isn’t related to the labor problems of the airline because pranks like that can ruin an airline’s reputation.
It is crunch time for PAL and every stakeholder must decide if they want to save the airline or bury it for good. Government should not be expected to save PAL in the mistaken notion that its survival is in the national interest. Unlike in the past, if PAL goes belly up, there are enough competitors to take over its market and provide the service almost as if nothing happened.
The world has changed drastically in recent years. Job security can no longer be guaranteed in a globalized world where stiff competition is the name of the game. PAL is still organized under the rules of a more genteel world that had long ago changed. The new rules of the game in today’s business world may not be for the better in humane terms but businesses can only play by the new rules or perish.
A strike at this time may kill the airline. That does not do the union members any good. And while the owners may get hurt as well, they are in a better position to bounce back quickly as their Plan B, Airphil Express, is already up and running.
About 2,600 rank and file employees will be retrenched under the plan but more than 4,000 will retain their jobs in an airline that is better equipped to compete. And for those who will be retrenched, they will get financial and other benefits and be first in line for jobs in the outsource company that will take over the functions. That sounds better than killing the airline and almost 7000 employees losing their jobs. If the airline keels over because of the strike, all 7000 employees fall in line with other creditors for any financial claims.
Hopefully reason rather than emotion prevails so that Asia’s First Airline can still proudly fly the national colors in all corners of the world. For the PAL union to strike now is like cutting their nose to spite their face. It just doesn’t work for their benefit or anyone else’s other than PAL’s competitors who will gladly divide among themselves the still formidable market share of Asia’s First.
Those were the days
Jose Villaescusa sent this one.
LIFE was really so much simpler then... when Apple and Blackberry were just fruits, while Samsung was Delilah’s lover!
Sunday, March 27, 2011
Malacañang says it won't intervene in PAL row anymore
By Aurea Calica (The Philippine Star) Updated March 27, 2011 12:00 AM
SILANG, Cavite, Philippines – Malacañang said yesterday it would no longer intervene in the Philippine Airlines (PAL) management-labor row after it had upheld the decision of the Department of Labor and Employment (DOLE) on Oct. 29, 2010 allowing the national carrier to outsource its services.
“In the case of PAL, we tried to strike the right balance between the interest of Philippine Airlines, our national carrier, who’s playing a very important role now in repatriating Filipinos in the Middle East and Japan, and of course, the rights of labor,” Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said in an interview here after attending the Philippine National Police Academy graduation rites with President Aquino.
“I know some people are not happy with the decision, but we did try to seek a balance between our national interest, the interest of management and the interest of labor, and they still have recourse, they can go and appeal it to the courts but as of now, the decision stands as it is,” Carandang said.
He explained the Office of the Executive Secretary tried to augment whatever separation pay was going to be given to the people who would be laid off.
“And certainly, we’re not completely happy with the solution but again, it’s a balance. Sometimes, when you try to strike a balance, neither side is completely happy but we did try to fulfill some of the demands of all the sides.”
“I think the next step would be to take it to the courts, if they did not want the decision,” Carandang said.
In Manila, Executive Secretary Paquito Ochoa Jr. said the Office of the President (OP) affirmed the decision of the DOLE that could result in the lay off of more than 2,000 workers but modified a component of the transition benefits package that would be given to the affected employees.
Ochoa said the OP empathized with the concerns of the PAL Employees Association (PALEA) and addressed the apprehensions of its members being employed by an entity other than the airline company and the remuneration they would receive.
The OP endorsed the separation pay equivalent to 125 percent of the employee’s monthly salary per year of service, an improvement from the one-fourth the amount of the employee’s one month salary provided for in the original decision.
It also affirmed certain compensation to PAL employees, such as 100 percent cash payment of vacation and sick leave balance regardless of years of service, one year extension of medical and hospitalization package, and continued trip pass benefits depending on the years of service rendered.
The OP, however, increased the additional gratuity pay to affected workers to P100,000 from P50,000.
Ochoa said the OP decision on the petition of PALEA for presidential intervention upheld the labor department’s ruling that service providers should absorb the affected workers.
PAL shall be bound and held liable by way of guaranteeing the payment of their salaries for a period of one year from the time of their retrenchment.
In the decision, the OP said it agreed with the DOLE position that PAL could contract out services, the severance of employment of rank-and-file employees to be affected by the outsourcing of services was valid, and that PAL could not be held liable for unfair labor practice for pursuing a legitimate exercise of management prerogative.
PALEA’s decision to seek presidential intervention to settle the dispute with PAL stemmed from management’s plan to outsource its in-flight catering, air services and call center reservation operations, a move that will lead to the retrenchment of 2,600 employees.
The country’s flag-carrier said outsourcing these services would help reduce its accumulated net losses and deficit brought about by surging fuel prices, the ban of its entry into 27 European Union member-states and the suspension of its remittance facilities by the International Transport Association.
Ochoa explained that the OP had made efforts to get the two parties come up with a “mutually agreeable settlement” in a dialogue held in Malacañang last Feb. 11, but “both PAL and PALEA maintained their respective positions on the issues involved.”
“In light of this development, we are issuing a ruling which takes into consideration the welfare of the workers involved in accordance with labor laws and regulations,” he said.
SILANG, Cavite, Philippines – Malacañang said yesterday it would no longer intervene in the Philippine Airlines (PAL) management-labor row after it had upheld the decision of the Department of Labor and Employment (DOLE) on Oct. 29, 2010 allowing the national carrier to outsource its services.
“In the case of PAL, we tried to strike the right balance between the interest of Philippine Airlines, our national carrier, who’s playing a very important role now in repatriating Filipinos in the Middle East and Japan, and of course, the rights of labor,” Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said in an interview here after attending the Philippine National Police Academy graduation rites with President Aquino.
“I know some people are not happy with the decision, but we did try to seek a balance between our national interest, the interest of management and the interest of labor, and they still have recourse, they can go and appeal it to the courts but as of now, the decision stands as it is,” Carandang said.
He explained the Office of the Executive Secretary tried to augment whatever separation pay was going to be given to the people who would be laid off.
“And certainly, we’re not completely happy with the solution but again, it’s a balance. Sometimes, when you try to strike a balance, neither side is completely happy but we did try to fulfill some of the demands of all the sides.”
“I think the next step would be to take it to the courts, if they did not want the decision,” Carandang said.
In Manila, Executive Secretary Paquito Ochoa Jr. said the Office of the President (OP) affirmed the decision of the DOLE that could result in the lay off of more than 2,000 workers but modified a component of the transition benefits package that would be given to the affected employees.
Ochoa said the OP empathized with the concerns of the PAL Employees Association (PALEA) and addressed the apprehensions of its members being employed by an entity other than the airline company and the remuneration they would receive.
The OP endorsed the separation pay equivalent to 125 percent of the employee’s monthly salary per year of service, an improvement from the one-fourth the amount of the employee’s one month salary provided for in the original decision.
It also affirmed certain compensation to PAL employees, such as 100 percent cash payment of vacation and sick leave balance regardless of years of service, one year extension of medical and hospitalization package, and continued trip pass benefits depending on the years of service rendered.
The OP, however, increased the additional gratuity pay to affected workers to P100,000 from P50,000.
Ochoa said the OP decision on the petition of PALEA for presidential intervention upheld the labor department’s ruling that service providers should absorb the affected workers.
PAL shall be bound and held liable by way of guaranteeing the payment of their salaries for a period of one year from the time of their retrenchment.
In the decision, the OP said it agreed with the DOLE position that PAL could contract out services, the severance of employment of rank-and-file employees to be affected by the outsourcing of services was valid, and that PAL could not be held liable for unfair labor practice for pursuing a legitimate exercise of management prerogative.
PALEA’s decision to seek presidential intervention to settle the dispute with PAL stemmed from management’s plan to outsource its in-flight catering, air services and call center reservation operations, a move that will lead to the retrenchment of 2,600 employees.
The country’s flag-carrier said outsourcing these services would help reduce its accumulated net losses and deficit brought about by surging fuel prices, the ban of its entry into 27 European Union member-states and the suspension of its remittance facilities by the International Transport Association.
Ochoa explained that the OP had made efforts to get the two parties come up with a “mutually agreeable settlement” in a dialogue held in Malacañang last Feb. 11, but “both PAL and PALEA maintained their respective positions on the issues involved.”
“In light of this development, we are issuing a ruling which takes into consideration the welfare of the workers involved in accordance with labor laws and regulations,” he said.
PAL operation ‘normal’ despite threat of strike from union
Darwin G. Amojelar
The Manila Times
March 26, 2011
PHILIPPINE Airlines (PAL) on Friday said that its operation is “normal” despite a threat from the airline’s union to hold a strike.
In a statement, the Lucio Tan-owned flag-carrier shrugged off a claim of the Philippine Airlines Employees Association (Palea) that majority of its members voted in favor of a work stoppage, as it assured passengers of continuing flights.
Palea said that 95 percent of its members voted yes in the strike poll conducted on Wednesday.
The group added that some 70 percent of its members turned out for the strike vote and a mere 4 percent voted no.
“The massive vote for a strike is an expression of protest at the 13-year long suspension of the collective bargaining agreement (CBA) and the planned contractualization amidst PAL’s $1.6 billion yearly profit. Our demand for new CBA negotiations has remained unheeded for the past five month, thus we are forced to go on strike,” Gerry Rivera, Palea president, said.
Rivera added that a strike can still be shelved if PAL stops breaking promises and instead opens negotiations without any preconditions.
Palea finished tallying the votes late on Thursday from all PAL offices and outlying stations and on Friday morning submitted the results to the Department of Labor and Employment in time for another conciliation meeting.
In the last strike vote conducted last December, some 86 percent voted yes.
Jose S.L. Uybarreta, PAL vice president for Human Resources, said that government-brokered conciliation meetings are ongoing.
He added that PAL management informed the National Conciliation and Mediation Board (NCMB) also on Friday that it will submit its collective bargaining agreement (CBA) counter-proposal on Monday as earlier committed.
With the ongoing talks, Uybarreta said, PAL sees “no rhyme nor reason” for the strike vote called by the union on Wednesday.
He described as “complete fabrication” accusations by Palea that PAL allegedly refuses to bargain with its union.
According to him, PAL is willing to open negotiations, name its panel of negotiators and submit its counter-proposal.
While PAL believes that the union’s planned strike has no legal basis, Uybarreta said, the flag-carrier is not leaving everything to chance.
“We are making the necessary preparations to prevent flight disruptions and passenger inconvenience,” he stressed.
“PAL respects and strictly adheres to the legal process. As we have repeatedly told Palea and the NCMB, PAL is open to negotiating a new collective bargaining agreement, but it cannot include the spin-off issue because the same is still pending before Malacañang,” Uybarreta said.
On Thursday, Palea said that majority of its members in Metro Manila voted for a strike.
During a telephone interview, Gerry Rivera, Palea president, reported that 96.4 percent of the total votes cast in Metro Manila area were in favor of a strike vote, while only 3 percent of its members voted against the move.
Rivera said that 1,996 members in Metro Manila participated out of some 2,987 total members.
Palea’s move to strike came after PAL management refused to negotiate with the union about their CBA that was suspended 13 years ago.
Rivera said that PAL has sat on its request for bargaining negotiations for five months now.
According to the Labor Code, before any legal strike can proceed, a notice of strike must be filed and then a strike vote is conducted in which a simple majority of members must agree.
“The Metro Manila votes of Palea members are a clear trend that we believe will be repeated in the outlying stations once the ballots have been counted. This [heralds] of the determination of PAL workers to fight for their regular jobs and right to bargain. We hope that PAL management will heed this call instead of dismissing it as baseless,” Rivera said.
Palea expected to finish counting the rest of the ballots from the outlying stations all over the country on Thursday night.
“The strike vote results will be submitted (Friday) to the Department of Labor and Employment in time for the conciliation meeting set at the Intramuros DOLE office,” he said.
After the submission, according to Rivera, the group needs to undergo a seven-day strike ban.
If there are no intervening events, he said, the actual strike is expected to happen seven days after Friday.
“Promises are unfortunately easy to make and break especially for PAL. Instead of promising to begin negotiations within two weeks, we suggest that PAL actually do so by submitting its counter-proposal to our CBA proposal that management has sat on for five months already.
PAL must start negotiations without any preconditions. How can PAL negotiate in good faith when it already wants to remove provisions in the coverage of the CBA even before it has opened the bargaining process?” he asked.
The Manila Times
March 26, 2011
PHILIPPINE Airlines (PAL) on Friday said that its operation is “normal” despite a threat from the airline’s union to hold a strike.
In a statement, the Lucio Tan-owned flag-carrier shrugged off a claim of the Philippine Airlines Employees Association (Palea) that majority of its members voted in favor of a work stoppage, as it assured passengers of continuing flights.
Palea said that 95 percent of its members voted yes in the strike poll conducted on Wednesday.
The group added that some 70 percent of its members turned out for the strike vote and a mere 4 percent voted no.
“The massive vote for a strike is an expression of protest at the 13-year long suspension of the collective bargaining agreement (CBA) and the planned contractualization amidst PAL’s $1.6 billion yearly profit. Our demand for new CBA negotiations has remained unheeded for the past five month, thus we are forced to go on strike,” Gerry Rivera, Palea president, said.
Rivera added that a strike can still be shelved if PAL stops breaking promises and instead opens negotiations without any preconditions.
Palea finished tallying the votes late on Thursday from all PAL offices and outlying stations and on Friday morning submitted the results to the Department of Labor and Employment in time for another conciliation meeting.
In the last strike vote conducted last December, some 86 percent voted yes.
Jose S.L. Uybarreta, PAL vice president for Human Resources, said that government-brokered conciliation meetings are ongoing.
He added that PAL management informed the National Conciliation and Mediation Board (NCMB) also on Friday that it will submit its collective bargaining agreement (CBA) counter-proposal on Monday as earlier committed.
With the ongoing talks, Uybarreta said, PAL sees “no rhyme nor reason” for the strike vote called by the union on Wednesday.
He described as “complete fabrication” accusations by Palea that PAL allegedly refuses to bargain with its union.
According to him, PAL is willing to open negotiations, name its panel of negotiators and submit its counter-proposal.
While PAL believes that the union’s planned strike has no legal basis, Uybarreta said, the flag-carrier is not leaving everything to chance.
“We are making the necessary preparations to prevent flight disruptions and passenger inconvenience,” he stressed.
“PAL respects and strictly adheres to the legal process. As we have repeatedly told Palea and the NCMB, PAL is open to negotiating a new collective bargaining agreement, but it cannot include the spin-off issue because the same is still pending before Malacañang,” Uybarreta said.
On Thursday, Palea said that majority of its members in Metro Manila voted for a strike.
During a telephone interview, Gerry Rivera, Palea president, reported that 96.4 percent of the total votes cast in Metro Manila area were in favor of a strike vote, while only 3 percent of its members voted against the move.
Rivera said that 1,996 members in Metro Manila participated out of some 2,987 total members.
Palea’s move to strike came after PAL management refused to negotiate with the union about their CBA that was suspended 13 years ago.
Rivera said that PAL has sat on its request for bargaining negotiations for five months now.
According to the Labor Code, before any legal strike can proceed, a notice of strike must be filed and then a strike vote is conducted in which a simple majority of members must agree.
“The Metro Manila votes of Palea members are a clear trend that we believe will be repeated in the outlying stations once the ballots have been counted. This [heralds] of the determination of PAL workers to fight for their regular jobs and right to bargain. We hope that PAL management will heed this call instead of dismissing it as baseless,” Rivera said.
Palea expected to finish counting the rest of the ballots from the outlying stations all over the country on Thursday night.
“The strike vote results will be submitted (Friday) to the Department of Labor and Employment in time for the conciliation meeting set at the Intramuros DOLE office,” he said.
After the submission, according to Rivera, the group needs to undergo a seven-day strike ban.
If there are no intervening events, he said, the actual strike is expected to happen seven days after Friday.
“Promises are unfortunately easy to make and break especially for PAL. Instead of promising to begin negotiations within two weeks, we suggest that PAL actually do so by submitting its counter-proposal to our CBA proposal that management has sat on for five months already.
PAL must start negotiations without any preconditions. How can PAL negotiate in good faith when it already wants to remove provisions in the coverage of the CBA even before it has opened the bargaining process?” he asked.
Palace upholds PAL spinoff as union votes to hold strike
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 02:04:00 03/26/2011
MANILA, Philippines—Malacañang on Friday upheld a decision of the Department of Labor and Employment allowing Philippine Airlines (PAL) to spin off its non-core services but doubled the amount of gratuity to be given to the affected 2,600 employees.
The decision was announced on Friday night by presidential spokesperson Edwin Lacierda only hours after the airline’s union, the PAL Employees Association (Palea) announced that 95 percent of its members had voted to strike to force management to negotiate a collective bargaining agreement.
Lacierda, in a text message, said the Palace decided to increase from P50,000 to P100,000 the gratuity to be given to employees affected by the spinoff.
He said he has yet to have a copy of the decision of Executive Secretary Paquito Ochoa.
It was an affirmation of the ruling of Labor Secretary Rosalinda Baldoz on October 29, to allow PAL management to spinoff non-core services such as inflight catering, airport services and call center reservation.
In a press statement, PAL welcomed the Malacañang decision and said it would abide by the order, which recognized its right to spin off non-core businesses in order to survive as an airline.
Survival
PAL president and chief operating officer Jaime Bautista said the decision removes all legal impediments of the spinoff program.
“PAL can now focus on its restructuring efforts in order to survive in the long term,” Bautista said.
He said management will reach out to affected workers to discuss smooth and orderly implementation of the ruling.
Bautista said that besides the P100,000 gratuity, each affected employee would receive separation a pay equivalent to 1.25 month’s salary for every year of service, 100 percent commutation of unused vacation and sick leave balances, one-year extension of medical and hospitalization benefits, and trip pass benefits depending on the number of years in service.
Earlier Friday, Palea announced the result of Wednesday’s strike vote.
The airline, however, shrugged off the strike threat as it assured its passengers that flights would not be disrupted.
In a statement on Friday before the Malacañang announcement, Palea said the nationwide tally of its strike vote showed that less than five percent of the union’s members opposed the work stoppage.
Palea represents more than half of the airline’s 7,000 employees. It hopes the strike would paralyze PAL’s operations, leaving a large hole in the air travel sector that no other airline can compensate for.
“Prepare for a strike,” Palea president Gerry Rivera said in a text message on Friday.
“The massive vote for a strike is an expression of protest at the 13-year long suspension of the CBA and the planned ‘contractualization’ … Our demand for new CBA negotiations has remained unheeded for the past five months thus we are forced to go on strike,” he said.
Philippine Daily Inquirer
First Posted 02:04:00 03/26/2011
MANILA, Philippines—Malacañang on Friday upheld a decision of the Department of Labor and Employment allowing Philippine Airlines (PAL) to spin off its non-core services but doubled the amount of gratuity to be given to the affected 2,600 employees.
The decision was announced on Friday night by presidential spokesperson Edwin Lacierda only hours after the airline’s union, the PAL Employees Association (Palea) announced that 95 percent of its members had voted to strike to force management to negotiate a collective bargaining agreement.
Lacierda, in a text message, said the Palace decided to increase from P50,000 to P100,000 the gratuity to be given to employees affected by the spinoff.
He said he has yet to have a copy of the decision of Executive Secretary Paquito Ochoa.
It was an affirmation of the ruling of Labor Secretary Rosalinda Baldoz on October 29, to allow PAL management to spinoff non-core services such as inflight catering, airport services and call center reservation.
In a press statement, PAL welcomed the Malacañang decision and said it would abide by the order, which recognized its right to spin off non-core businesses in order to survive as an airline.
Survival
PAL president and chief operating officer Jaime Bautista said the decision removes all legal impediments of the spinoff program.
“PAL can now focus on its restructuring efforts in order to survive in the long term,” Bautista said.
He said management will reach out to affected workers to discuss smooth and orderly implementation of the ruling.
Bautista said that besides the P100,000 gratuity, each affected employee would receive separation a pay equivalent to 1.25 month’s salary for every year of service, 100 percent commutation of unused vacation and sick leave balances, one-year extension of medical and hospitalization benefits, and trip pass benefits depending on the number of years in service.
Earlier Friday, Palea announced the result of Wednesday’s strike vote.
The airline, however, shrugged off the strike threat as it assured its passengers that flights would not be disrupted.
In a statement on Friday before the Malacañang announcement, Palea said the nationwide tally of its strike vote showed that less than five percent of the union’s members opposed the work stoppage.
Palea represents more than half of the airline’s 7,000 employees. It hopes the strike would paralyze PAL’s operations, leaving a large hole in the air travel sector that no other airline can compensate for.
“Prepare for a strike,” Palea president Gerry Rivera said in a text message on Friday.
“The massive vote for a strike is an expression of protest at the 13-year long suspension of the CBA and the planned ‘contractualization’ … Our demand for new CBA negotiations has remained unheeded for the past five months thus we are forced to go on strike,” he said.
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