September 30, 2011
By BenK
I have been following the bizarre drama of Philippine Airlines, “the
world’s most entertaining air carrier”, for nearly a year as it has
struggled mightily – and at times, comically so – towards implementing
an outsourcing plan which PAL hopes will turn its financial fortunes
around. The sticking point throughout the whole sorry saga has been the
resistance of the Philippine Airlines Employees’ Association (PALEA),
which represents the 2,600 catering, reservations, and ground service
workers who have been made redundant by the plan of PAL to divest itself
of those three business units.
On Tuesday, with Manila and most of the rest of Luzon already dealing with
being pounded by Typhoon Pedring, the PAL-PALEA dispute came to an ugly
head when 300 or so PALEA employees staged an all-day “work stoppage”
at NAIA, forcing PAL to suspend all operations and stranding, according to
an airline spokesperson, about 14,000 passengers. The wildcat strike,
which was patently illegal according to Philippine labor law and
presumably punishable under the terms of the Civil Aviation Act of 2008
has sparked the predictable debate online, much of it rather idiotic if
the examples strained from the Net and posted by Paul Farol over at Pinoy
Buzz yesterday are any indication, including this gem he dug out of Raissa
Robles’ blog:
Meanwhile, in the blogosphere, blogger and Journalist Raissa Robles
needles PAL over an apparent attempt to mislead people with semantics,
specifically with the word “non-core personnel”:
I can’t help but notice that a sit-down protest held by PAL’s
ground employees yesterday totally paralyzed company operations and
caused 14,000 passengers to miss their flights.
Didn’t PAL keep saying – to justify the sacking of several
thousand employees – that what they were out-sourcing were
“non-core” activities?
“Non-core” would mean that these activities are not that vital to
their day-to-day operations, right?
And yet when these “non-core” personnel struck yesterday, company
operations were turned into total chaos.
Robles then leaves a link to a previous article where she underscores
her abilities as an investigative journalist. Robles essentially tries
to contextualize PALEA’s strike, somewhat suggesting it is a
justifiable recourse despite what the Civil Aviation Act of 2008 says.
So, Ms. Raissa is an investigative journalist. Good for her. I am, among
other things, a consultant and analyst of the airline industry, and
coincidentally happen to be working right now with a sizeable Middle
Eastern carrier on various issues concerning its own outsourcing plan. So
I have the privilege of drawing on a bit more specific knowledge than she
can when I commented on her brief and sarcastic post with:
You seem to have a rather naïve understanding of what a “core
employee” is to an airline. The “core task” as far as any
airline is concerned is moving paying passengers from one point to
another by means of an aircraft. That requires flight crews to operate
the aircraft, and cabin crews to maintain passenger safety. Everything
and everybody else is “non-core”. Essential for efficiency and
productivity, yes, but not necessarily something the airline needs to
provide itself, if useful alternatives (such as contractors) are
reliably available.
Outsourcing is the way of the world in the airline industry, it’s
sensible business. Personally, I’m skeptical of PAL’s ability to
manage tying their own shoes correctly, but I’ll tell you what,
I’d think even less of them from a business perspective if they
didn’t do this spin-off. PALEA has had more than a year to come to
terms with this, and they have consistently picked the most idiotic
and counter-productive choice [of how to respond] every time they’ve
had a chance.
Could PAL have handled the situation on Tuesday better? Probably. But
if I’m a suddenly-stranded passenger, already dealing with a typhoon
and faced with some planking jackass at the check-in counter
preventing me from getting on my flight home, or to the job overseas I
need to send my kids to school, I’m not going to blame the
abstraction of PAL management. I’m going to blame the fool in front
of me who’s visibly ruining my day, and the group represented by the
name PALEA on the sign he’s carrying. And I’m not going to be
particularly convinced of his argument that job security is his
“right.”
[PALEA President] Gerry Rivera should have thought of how this would
really play to the public, but he’s been so out of touch with
reality all through this saga that it would have been a real surprise
for him to get a clue now.
And therein lies the rub. For all its faults – and it has more than I
can count – for all its history of bad relations with its labor unions,
and whatever its real motives are, PAL has at least proceeded in line with
the basic core goal of keeping its planes in the air and keeping people on
the move. Yes, it does a terrible job at it, and there are much better
alternatives for the consumer even in this limited air transport market.
Nonetheless, the inescapable conclusion is that, however small the
added-value PAL’s existence may actually be, it does, perhaps in spite
of itself, provide a public service.
PALEA does not. PALEA provides a service for, at this point, roughly 300
malcontents out of about 2,600 people, the rest of whom, while
understandably not exactly thrilled with the new arrangements and probably
rightly concerned about their prospects in an uncertain job market, took
what they could get out of an inevitable situation and moved on.
The President characterized the “labor action” on Tuesday as
“economic sabotage” and for once he’s actually right about
something. PALEA is conducting an assault on the Filipino people, and
it’s actually a three-pronged attack. First, there was the incredible
confusion and inconvenience caused by forcing PAL to ground on Tuesday.
Many of the affected passengers were probably only inconvenienced – but
does PALEA know how many may have missed being somewhere really important,
and will suffer serious consequences as a result? Second, PALEA’s action
damaged the image and reputation of the country. PAL is the only airline
that carries the country’s name to other places (Air Philippines, which
only has limited and usually code-shared service to Singapore and Hong
Kong, doesn’t count), and while whatever ire an international traveler
might feel when learning he can’t board his flight to Manila is of
course probably going to be directed at the airline, he wouldn’t be
feeling that ire for that particular reason if it were not for PALEA’s
planking jackasses in NAIA.
And finally, PALEA’s antics harm the cause of every other labor
organization in the country. The Philippines is not a good atmosphere for
organized labor in the first place, which is unfortunate because at this
stage of the country’s development many workers do need the protection a
union can provide. By behaving in an irresponsible way and making the
public the bearer of the consequences of their actions, PALEA risks
hardening public opinion against unions in general, and as public opinion
goes, so go the opinions of legislators who keep their jobs by reacting to
it without looking into circumstances too deeply or objectively.
Economic sabotage? PALEA is lucky they’re in the Philippines. A country
with less of a sense of humor might consider it something a lot worse.
Friday, September 30, 2011
PAL union vows ‘last hurrah’, Roxas: Palea reneged on promise not to hold protest amid typhoon
Philippine Daily Inquirer
September 30, 2011
By Jerome Aning, Paolo G. Montecillo
Employees of Philippine Airlines (PAL) are set to hold one last big rally Friday, the day their employment officially ends and the eve of the company’s switch to an outsourcing scheme that would cost 2,600 jobs.
PAL Employees Association (Palea) members have set up a protest camp outside the PAL In-Flight Center along MIA Road in Pasay City near the airlines’ hub, the Ninoy Aquino International Airport Terminal 2.
Palea president Gerry Rivera said the union’s provincial units would be staging their own protests. Palea and other labor groups would also hold rallies near the airports of Davao and Bacolod cities, he said.
On October 1, a similar broad coalition of labor groups, including Palea, will march from Cebu City to the Mactan-Cebu International Airport in Lapu-Lapu City.
“We call on Palea members to report for duty at the protest camp since PAL has locked us out of our workplace at Terminal 2 and other offices,” said Rivera in a statement.
Palea members stopped processing outbound passengers at the Naia 2 on Tuesday as Typhoon “Pedring” lashed Luzon. This resulted in flight disruptions and PAL placing the protesting workers on official leave and asking aviation authorities to remove them from the airport premises.
Meeting on the eve
The airline and the Aquino administration have threatened to file suits for economic sabotage against the workers.
But the union members remain unfazed.
“We are confident Palea’s protest against contractualization last Tuesday was within the bounds of the constitutionally guaranteed right to seek redress of grievances. We consider these threats mere scare tactics that will not weaken the defiance of Palea against the layoff and contractualization scheme of PAL. PAL employees are not stupid. We know the law,” Rivera said.
But Transportation Secretary Manuel “Mar” Roxas II, a senior member of the administration’s economic team, said that the night before the strike, the PAL employees had pledged not to hold any protest actions that might cripple operations as Pedring neared Luzon.
Still, the following day Tuesday, members of Palea went ahead and struck the airline as the volume of passengers swelled and Pedring swirled outside Naia 2.
Roxas said the talks between PAL’s management and union were brokered by the Department of Labor and Employment (DOLE) on Monday night.
“From what I understand, there was an agreement the night before that no labor actions would be carried out as the storm approached,” Roxas told reporters yesterday.
The Palea action resulted in the cancellation of 172 flights and inconvenience to 14,000 passengers.
PAL then placed the union members on terminal leave with pay until the end of their employment contracts which is today, September 30.
Other protest actions
Palea vice president Alnem Pretencio confirmed the meeting with management on Monday night, but denied the union had agreed not to hold any protests.
“What we agreed on was that we would not hold any big rallies in the airport area, but we never discussed other possible protest actions,” he said in an interview.
“Our backs were pushed against the wall and we had no choice but to act to protect our jobs,” he added.
Rivera stressed that what Palea conducted was merely a protest and not a strike, adding: “Good luck to PAL if it can argue its illegal strike case. But we know it is just a threat intended to frighten PAL employees, similar to its repeated warning of administrative cases against protesting workers.”
He said that whoever advised President Benigno Aquino III on the economic sabotage case against Palea “should be outsourced,” adding: “The facts are clear that it was PAL that shut down the company’s computer systems and other communication facilities immediately after the start of the protest, and then cancelled the flights that stranded the passengers.”
September 30, 2011
By Jerome Aning, Paolo G. Montecillo
Employees of Philippine Airlines (PAL) are set to hold one last big rally Friday, the day their employment officially ends and the eve of the company’s switch to an outsourcing scheme that would cost 2,600 jobs.
PAL Employees Association (Palea) members have set up a protest camp outside the PAL In-Flight Center along MIA Road in Pasay City near the airlines’ hub, the Ninoy Aquino International Airport Terminal 2.
Palea president Gerry Rivera said the union’s provincial units would be staging their own protests. Palea and other labor groups would also hold rallies near the airports of Davao and Bacolod cities, he said.
On October 1, a similar broad coalition of labor groups, including Palea, will march from Cebu City to the Mactan-Cebu International Airport in Lapu-Lapu City.
“We call on Palea members to report for duty at the protest camp since PAL has locked us out of our workplace at Terminal 2 and other offices,” said Rivera in a statement.
Palea members stopped processing outbound passengers at the Naia 2 on Tuesday as Typhoon “Pedring” lashed Luzon. This resulted in flight disruptions and PAL placing the protesting workers on official leave and asking aviation authorities to remove them from the airport premises.
Meeting on the eve
The airline and the Aquino administration have threatened to file suits for economic sabotage against the workers.
But the union members remain unfazed.
“We are confident Palea’s protest against contractualization last Tuesday was within the bounds of the constitutionally guaranteed right to seek redress of grievances. We consider these threats mere scare tactics that will not weaken the defiance of Palea against the layoff and contractualization scheme of PAL. PAL employees are not stupid. We know the law,” Rivera said.
But Transportation Secretary Manuel “Mar” Roxas II, a senior member of the administration’s economic team, said that the night before the strike, the PAL employees had pledged not to hold any protest actions that might cripple operations as Pedring neared Luzon.
Still, the following day Tuesday, members of Palea went ahead and struck the airline as the volume of passengers swelled and Pedring swirled outside Naia 2.
Roxas said the talks between PAL’s management and union were brokered by the Department of Labor and Employment (DOLE) on Monday night.
“From what I understand, there was an agreement the night before that no labor actions would be carried out as the storm approached,” Roxas told reporters yesterday.
The Palea action resulted in the cancellation of 172 flights and inconvenience to 14,000 passengers.
PAL then placed the union members on terminal leave with pay until the end of their employment contracts which is today, September 30.
Other protest actions
Palea vice president Alnem Pretencio confirmed the meeting with management on Monday night, but denied the union had agreed not to hold any protests.
“What we agreed on was that we would not hold any big rallies in the airport area, but we never discussed other possible protest actions,” he said in an interview.
“Our backs were pushed against the wall and we had no choice but to act to protect our jobs,” he added.
Rivera stressed that what Palea conducted was merely a protest and not a strike, adding: “Good luck to PAL if it can argue its illegal strike case. But we know it is just a threat intended to frighten PAL employees, similar to its repeated warning of administrative cases against protesting workers.”
He said that whoever advised President Benigno Aquino III on the economic sabotage case against Palea “should be outsourced,” adding: “The facts are clear that it was PAL that shut down the company’s computer systems and other communication facilities immediately after the start of the protest, and then cancelled the flights that stranded the passengers.”
Philippine Airlines faces month-long backlog
Manila Bulletin
September 30, 2011
By Cecil Morella (Agence France Press)
MANILA, Philippines — Flag-carrier Philippine Airlines PAL) took to the air again on Wednesday after being paralyzed for a day by a wildcat strike, but said bringing flights back to normal could take a month amid a manpower shortage.
Thousands of passengers were again stranded Wednesday amid a skeleton flight schedule.
''PAL apologizes to the passengers for the inconvenience caused by the flight cancellations and unexpected delays,'' the carrier said in a statement.
''PAL... expects to return to normal operations within a month.''
Tuesday's strike was the culmination of a tortuous program by loss-making PAL, Asia's oldest airline, to outsource 2,600 in-flight catering, airport services and call centre reservation jobs on October 1.
After winning government endorsement for its plan, PAL sent termination notices to its ground staff last month, saying it needed to trim its workforce to 5,000 and save up to $15 million in annual operating costs.
The affected workers staged their sit-in at Manila airport as an act of desperation, but PAL responded by bringing forward its outsourcing plan and immediately replaced the strikers with the cheaper labor.
After calling in the police, who carried many of the striking workers from the check-in counters, the sit-in ended and the airline finally dispatched seven flights late on Tuesday night.
A total of 104 flights were cancelled Wednesday, said an updated company tally, with just 36 flights taking off, half of them international.
PAL said at least 14,000 passengers were stranded Wednesday, roughly the same number as during the strike, out of a normal daily carrying capacity of 20,000-25,000.
A group that it calls ''trained management volunteers'' was now handling most of the ground crew duties, but service providers should take over all of these functions within a month, the airline added.
President Benigno Aquino, who is flying home later in the day aboard a chartered PAL flight after an official visit to Japan, denounced the strike and said those responsible could face criminal charges.
''What is clear right now is, under the Civil Aviation Act of 2008, any disruption is punishable,'' he told reporters in Tokyo.
Aquino emphasized that strikers were required by law to give advance notice, which they failed to do.
Aquino said government lawyers were studying whether the crime of ''economic sabotage'' was committed and, if so, the strikers could be jailed for up to three years and each fined 500,000 pesos ($11,500).
PAL also accused the protesters of disabling vehicles such as push-back trucks used to bring aircraft from the passenger tubes to the runway, deck loaders used for loading cargo onto the plane, and computer servers.
Its spokeswoman Cielo Villaluna told AFP this was the reason for the ongoing flight delays.
Ground crew union president Gerry Rivera rejected the allegations of sabotage, and accused the airline of illegally locking out its own employees.
''They (protesters) just stood there, they did not touch the equipment. If the replacement personnel now say they cannot operate them, that only means they are not trained,'' Rivera told AFP.
The union's last hope is that the Court of Appeals will declare the outsourcing plan illegal.
But the court has not given any indication it will deliver its verdict before the workers' contracts are officially terminated on October 1.
The union said just seven percent of the ground crew staff had applied for work with the service providers, since they were being offered salaries that in some cases was less than half their current pay with PAL.
Meanwhile, PAL said it will mount replacement flights in four specific flights cancelled on Tuesday (Sept. 27) from Manila to Cagayan de Oro, Davao, Bacolod and Cebu, and back.
The airline resumed its international flights to Hong Kong, Xiamen, Beijing, Narita, Nagoya, Kansai, Incheon, Taipei, Los Angeles, San Francisco, Vancouver and Australia.
Flights transferred to NAIA Terminal 3 until further notice include those bound for Roxas City and back to Manila, Cagayan de Oro, Tagbilaran, Iloilo, Tacloban and Puerto Princesa. Free shuttle buses are stationed at Terminal 2 to ferry passengers Terminal 3.
PAL flights that will be operated in NAIA Terminal 2 include: Incheon, Korea; Hong Kong, Shanghai, Beijing and Xiamen China; Taipei, Taiwan; Fukuoka, Nagoya, Osaka and Narita, Japan; Bangkok, Thailand; Honolulu, Los Angeles, San Francisco and Las Vegas, U.S.A; Vancouver, Canada and Melbourne-Sydney, Australia.
September 30, 2011
By Cecil Morella (Agence France Press)
MANILA, Philippines — Flag-carrier Philippine Airlines PAL) took to the air again on Wednesday after being paralyzed for a day by a wildcat strike, but said bringing flights back to normal could take a month amid a manpower shortage.
Thousands of passengers were again stranded Wednesday amid a skeleton flight schedule.
''PAL apologizes to the passengers for the inconvenience caused by the flight cancellations and unexpected delays,'' the carrier said in a statement.
''PAL... expects to return to normal operations within a month.''
Tuesday's strike was the culmination of a tortuous program by loss-making PAL, Asia's oldest airline, to outsource 2,600 in-flight catering, airport services and call centre reservation jobs on October 1.
After winning government endorsement for its plan, PAL sent termination notices to its ground staff last month, saying it needed to trim its workforce to 5,000 and save up to $15 million in annual operating costs.
The affected workers staged their sit-in at Manila airport as an act of desperation, but PAL responded by bringing forward its outsourcing plan and immediately replaced the strikers with the cheaper labor.
After calling in the police, who carried many of the striking workers from the check-in counters, the sit-in ended and the airline finally dispatched seven flights late on Tuesday night.
A total of 104 flights were cancelled Wednesday, said an updated company tally, with just 36 flights taking off, half of them international.
PAL said at least 14,000 passengers were stranded Wednesday, roughly the same number as during the strike, out of a normal daily carrying capacity of 20,000-25,000.
A group that it calls ''trained management volunteers'' was now handling most of the ground crew duties, but service providers should take over all of these functions within a month, the airline added.
President Benigno Aquino, who is flying home later in the day aboard a chartered PAL flight after an official visit to Japan, denounced the strike and said those responsible could face criminal charges.
''What is clear right now is, under the Civil Aviation Act of 2008, any disruption is punishable,'' he told reporters in Tokyo.
Aquino emphasized that strikers were required by law to give advance notice, which they failed to do.
Aquino said government lawyers were studying whether the crime of ''economic sabotage'' was committed and, if so, the strikers could be jailed for up to three years and each fined 500,000 pesos ($11,500).
PAL also accused the protesters of disabling vehicles such as push-back trucks used to bring aircraft from the passenger tubes to the runway, deck loaders used for loading cargo onto the plane, and computer servers.
Its spokeswoman Cielo Villaluna told AFP this was the reason for the ongoing flight delays.
Ground crew union president Gerry Rivera rejected the allegations of sabotage, and accused the airline of illegally locking out its own employees.
''They (protesters) just stood there, they did not touch the equipment. If the replacement personnel now say they cannot operate them, that only means they are not trained,'' Rivera told AFP.
The union's last hope is that the Court of Appeals will declare the outsourcing plan illegal.
But the court has not given any indication it will deliver its verdict before the workers' contracts are officially terminated on October 1.
The union said just seven percent of the ground crew staff had applied for work with the service providers, since they were being offered salaries that in some cases was less than half their current pay with PAL.
Meanwhile, PAL said it will mount replacement flights in four specific flights cancelled on Tuesday (Sept. 27) from Manila to Cagayan de Oro, Davao, Bacolod and Cebu, and back.
The airline resumed its international flights to Hong Kong, Xiamen, Beijing, Narita, Nagoya, Kansai, Incheon, Taipei, Los Angeles, San Francisco, Vancouver and Australia.
Flights transferred to NAIA Terminal 3 until further notice include those bound for Roxas City and back to Manila, Cagayan de Oro, Tagbilaran, Iloilo, Tacloban and Puerto Princesa. Free shuttle buses are stationed at Terminal 2 to ferry passengers Terminal 3.
PAL flights that will be operated in NAIA Terminal 2 include: Incheon, Korea; Hong Kong, Shanghai, Beijing and Xiamen China; Taipei, Taiwan; Fukuoka, Nagoya, Osaka and Narita, Japan; Bangkok, Thailand; Honolulu, Los Angeles, San Francisco and Las Vegas, U.S.A; Vancouver, Canada and Melbourne-Sydney, Australia.
PAL slowly back to normal
Manila Bulletin
September 30, 2011
By Anjo Perez
MANILA, Philippines — Two days after a wildcat strike undertaken by the ground service staff of Philippine Airlines paralyzed its operations at the Ninoy Aquino International Airport Terminal 2, the air carrier is slowly back to normal with volunteers from its administration departments filling in the posts abandoned by its striking workers.
With the new workforce coming from PAL's new service providers expected to report for duty Saturday, PAL has temporarily scaled down its operations to allow the new staff a smoother transition.
While assuring the riding its operations will continue despite the scheduled massive demonstration from its ground-based labor group Friday against its spin-off(outsourcing), PAL management sought the help of the Philippine National Police (PNP) and the Manila International Airport (MIA) authorities to ensure smooth operations despite the protest action from Philippine Airlines Employees’ Association (PALEA).
“We have already prepared the necessary contingency plan in case there will be a demonstration today,” Villaluna said, adding that the airline’s ground service operations are now sufficiently staffed by their contractuals who has started replacing PAL’s regular employees.
This after PALEA President Gerardo Rivera said his group will “hold a big protest at the airport tomorrow (September 30), the last day of work for 2,600 PAL employees adversely affected by the outsourcing plan.”
On Tuesday, about 300 members of PALEA held a wild cat strike in protest of the spin off. President Jaime Bautista estimated the foregone revenues from the work stoppage that resulted to the cancellation of over 200 scheduled flights between $8 and $10 million.
As of press time, PAL and PALEA officials are meeting with Labor and Employment Secretary Rosalinda Baldoz to discuss possible avenues that would avert the situation from further deteriorating.
Meanwhile, the reduced schedule of flights was also brought about by the emergency repair of several ground handling equipment that were sabotaged by the striking workers.
“Despite our best efforts to restore normalcy at NAIA Terminal 2, it is unfortunate that the union still persists in hampering our airport operations and preventing the delivery of service to our passengers,” PAL said through a statement.
"Although operations slightly improved, a total of 64 domestic and 40 international flights were cancelled Friday due to manpower shortage even as hundreds of PAL volunteers stepped in to perform check-in, ramp and catering functions."
Last Wednesday, PAL operated a special flight from Haneda airport in Tokyo to Manila, carrying President Aquino and his party after a working visit to Japan.
PAL operated 18 regular international flights and 18 domestic flights all day Thursday.
The airline firm expects to return to normal operations within a month after its designated service providers – Sky Logistics, Sky Kitchen and SPi Global – formally take over the airline’s ground-handling, catering and call-center reservations functions, respectively
PAL has deployed a corps of trained management volunteers to handle these functions during the transition period to the service providers.
“PAL apologizes to the passengers for the inconvenience caused by the flight cancellations and unexpected delays,” PAL said. (with reports from Sam Medenilla and Madel Sabater)
September 30, 2011
By Anjo Perez
MANILA, Philippines — Two days after a wildcat strike undertaken by the ground service staff of Philippine Airlines paralyzed its operations at the Ninoy Aquino International Airport Terminal 2, the air carrier is slowly back to normal with volunteers from its administration departments filling in the posts abandoned by its striking workers.
With the new workforce coming from PAL's new service providers expected to report for duty Saturday, PAL has temporarily scaled down its operations to allow the new staff a smoother transition.
While assuring the riding its operations will continue despite the scheduled massive demonstration from its ground-based labor group Friday against its spin-off(outsourcing), PAL management sought the help of the Philippine National Police (PNP) and the Manila International Airport (MIA) authorities to ensure smooth operations despite the protest action from Philippine Airlines Employees’ Association (PALEA).
“We have already prepared the necessary contingency plan in case there will be a demonstration today,” Villaluna said, adding that the airline’s ground service operations are now sufficiently staffed by their contractuals who has started replacing PAL’s regular employees.
This after PALEA President Gerardo Rivera said his group will “hold a big protest at the airport tomorrow (September 30), the last day of work for 2,600 PAL employees adversely affected by the outsourcing plan.”
On Tuesday, about 300 members of PALEA held a wild cat strike in protest of the spin off. President Jaime Bautista estimated the foregone revenues from the work stoppage that resulted to the cancellation of over 200 scheduled flights between $8 and $10 million.
As of press time, PAL and PALEA officials are meeting with Labor and Employment Secretary Rosalinda Baldoz to discuss possible avenues that would avert the situation from further deteriorating.
Meanwhile, the reduced schedule of flights was also brought about by the emergency repair of several ground handling equipment that were sabotaged by the striking workers.
“Despite our best efforts to restore normalcy at NAIA Terminal 2, it is unfortunate that the union still persists in hampering our airport operations and preventing the delivery of service to our passengers,” PAL said through a statement.
"Although operations slightly improved, a total of 64 domestic and 40 international flights were cancelled Friday due to manpower shortage even as hundreds of PAL volunteers stepped in to perform check-in, ramp and catering functions."
Last Wednesday, PAL operated a special flight from Haneda airport in Tokyo to Manila, carrying President Aquino and his party after a working visit to Japan.
PAL operated 18 regular international flights and 18 domestic flights all day Thursday.
The airline firm expects to return to normal operations within a month after its designated service providers – Sky Logistics, Sky Kitchen and SPi Global – formally take over the airline’s ground-handling, catering and call-center reservations functions, respectively
PAL has deployed a corps of trained management volunteers to handle these functions during the transition period to the service providers.
“PAL apologizes to the passengers for the inconvenience caused by the flight cancellations and unexpected delays,” PAL said. (with reports from Sam Medenilla and Madel Sabater)
PAL says operations returning to normal
The Philippine Star
September 30, 2011
By Mayen Jaymalin
MANILA, Philippines - Philippine Airlines (PAL) is looking forward to resuming normal operations even as terminated airline employees have threatened to stage a big protest action on their last day of work today.
PAL president Jaime Bautista reported that the airline operation is almost 50 percent back to normal as of yesterday afternoon.
“Since the strike last Tuesday, we are now operating 48 percent of our average daily flight frequencies,” Bautista said.
Cielo Villaluna, PAL spokesperson, said PAL has moved their operations from the Ninoy Aquino International Airport (NAIA) Terminal 2 to Terminal 3.
Striking employees had set up a protest camp outside NAIA 2.
“We are now in the transition process with the third party service providers set to officially take over the non-core operations of the airline company tomorrow so the beefing up of manpower is now in full swing,” Villaluna said.
“Although we are in the transition process and not in full-scale operations at this time, we assure our passengers that highly trained employees are extending services to them and that our operations would normalize in a few weeks,” Villaluna added.
She also said several buses have been deployed to ferry passengers from Terminal 2 to Terminal 3.
Villaluna said PAL was forced to implement the planned outsourcing program earlier than the Oct. 1 schedule because some of the affected employees abandoned their posts and went on strike.
But Villaluna said until today, the third party service providers who will take over the airline operations are still willing to accept and absorb PAL employees who were affected by the spin-off but did not join the strike.
Villaluna said some of the affected employees have expressed willingness to apply and work under the third party service providers and avail of PAL’s termination package.
“The third party service providers have been accepting outsiders, but they sent word that they are willing to accept applicants from PAL,” she said.
For those employees who mounted the strike, Villaluna said the PAL legal department is already preparing the filing of administrative as well as possible criminal charges.
“They violated the law when they abandoned their posts and obstructed airport operations,” she said.
The Philippine Airlines Employees’ Association (PALEA), however, dismissed threats of an economic sabotage case from the government and an illegal strike suit from PAL management.
“We are confident that PALEA’s protest against contractualization last Tuesday is within the bounds of the constitutionally guaranteed right to seek redress of grievances,” PALEA president Gerry Rivera said.
Rivera also announced that their members are set to hold a big protest at the airport today to dramatize their objection against the impending outsourcing program that would result in the layoff of 2,600 employees.
But Villaluna said PAL is coordinating with authorities to ensure the safety of passengers amid the planned massive protest action.
Meanwhile, Labor Secretary Rosalinda Baldoz said the Department of Labor and Employment is willing to mediate between PAL management and the striking employees should they opt to sit down and resolve their differences. – With Rudy Santos, Zinnia de la Peña
September 30, 2011
By Mayen Jaymalin
MANILA, Philippines - Philippine Airlines (PAL) is looking forward to resuming normal operations even as terminated airline employees have threatened to stage a big protest action on their last day of work today.
PAL president Jaime Bautista reported that the airline operation is almost 50 percent back to normal as of yesterday afternoon.
“Since the strike last Tuesday, we are now operating 48 percent of our average daily flight frequencies,” Bautista said.
Cielo Villaluna, PAL spokesperson, said PAL has moved their operations from the Ninoy Aquino International Airport (NAIA) Terminal 2 to Terminal 3.
Striking employees had set up a protest camp outside NAIA 2.
“We are now in the transition process with the third party service providers set to officially take over the non-core operations of the airline company tomorrow so the beefing up of manpower is now in full swing,” Villaluna said.
“Although we are in the transition process and not in full-scale operations at this time, we assure our passengers that highly trained employees are extending services to them and that our operations would normalize in a few weeks,” Villaluna added.
She also said several buses have been deployed to ferry passengers from Terminal 2 to Terminal 3.
Villaluna said PAL was forced to implement the planned outsourcing program earlier than the Oct. 1 schedule because some of the affected employees abandoned their posts and went on strike.
But Villaluna said until today, the third party service providers who will take over the airline operations are still willing to accept and absorb PAL employees who were affected by the spin-off but did not join the strike.
Villaluna said some of the affected employees have expressed willingness to apply and work under the third party service providers and avail of PAL’s termination package.
“The third party service providers have been accepting outsiders, but they sent word that they are willing to accept applicants from PAL,” she said.
For those employees who mounted the strike, Villaluna said the PAL legal department is already preparing the filing of administrative as well as possible criminal charges.
“They violated the law when they abandoned their posts and obstructed airport operations,” she said.
The Philippine Airlines Employees’ Association (PALEA), however, dismissed threats of an economic sabotage case from the government and an illegal strike suit from PAL management.
“We are confident that PALEA’s protest against contractualization last Tuesday is within the bounds of the constitutionally guaranteed right to seek redress of grievances,” PALEA president Gerry Rivera said.
Rivera also announced that their members are set to hold a big protest at the airport today to dramatize their objection against the impending outsourcing program that would result in the layoff of 2,600 employees.
But Villaluna said PAL is coordinating with authorities to ensure the safety of passengers amid the planned massive protest action.
Meanwhile, Labor Secretary Rosalinda Baldoz said the Department of Labor and Employment is willing to mediate between PAL management and the striking employees should they opt to sit down and resolve their differences. – With Rudy Santos, Zinnia de la Peña
Thursday, September 29, 2011
Philippine Airlines Flight Advisory
Effective 29 September 2011 (Thursday), until further notice, the following PAL flights will be operated in NAIA Terminal 3:
- PR189 Manila-Roxas ETD 0530H
- PR190 Roxas-Manila ETA 0800H
- PR281 Manila-Cagayan de Oro ETD 0600H
- PR282 Cagayan de Oro-Manila ETA 0920H
- PR175 Manila-Tagbilaran ETD 0850H
- PR176 Tagbilaran-Manila ETA 1200H
- PR141 Manila-Iloilo nETD 1250H
- PR142 Iloilo-Manila nETA 1435H
- PR391 Manila-Tacloban nETD 1010H
- PR392 Tacloban-Manila nETA 1315H
- PR197 Manila-Puerto Princesa ETD 1600H
- PR198 Puerto Princesa-Manila ETA 1905H
Passengers are advised to look for PAL-designated counters / PAL signages at Terminal 3. Free shuttle buses are stationed at Terminal 2 to ferry passengers Terminal 3.
Meanwhile, the following PAL flights will be operated in NAIA Terminal 2:
International
- PR466 Manila-Incheon nETD 0300H
- PR467 Incheon-Manila ETA
- PR358 Manila-Beijing ETD 0720H
- PR359 Beijing-Manila ETA 1740H
- PR896 Manila-Taipei ETD 0720H
- PR899 Taipei-Manila ETA 1930H
- PR334 Manila-Xiamen ETD 0740H
- PR335 Xiamen-Manila ETA 1325H
- PR300 Manila-Hong Kong ETD 0800H
- PR301 Hong Kong-Manila ETA 1315H
- PR426 Manila-Fukuoka ETD 1020H
- PR425 Fukuoka-Manila ETA 1830H
- PR730 Manila-Bangkok ETD 1025H
- PR731 Bangkok-Manila ETA 1820H
- PR336 Manila-Shanghai ETD 1130H
- PR337 Shanghai-Manila ETA 1930H
- PR438 Manila-Nagoya ETD 1330H
- PR437 Nagoya-Manila ETA 1245H (next day)
- PR408 Manila-Osaka ETD 1425H
- PR407 Osaka-Manila ETA 1305H (next day)
- PR432 Manila-Narita ETD 1430H
- PR431 Narita-Manila ETA 1310H (next day)
- PR468 Manila-Incheon ETD 1430H
- PR469 Incheon-Manila ETA 2340H
- PR306 Manila-Hong Kong ETD 1450H
- PR307 Hong Kong-Manila ETA 2005H
- PR100 Manila-Honolulu ETD 1520H
- PR101 Honolulu-Manila ETA 1435H (next day)
- PR106 Manila-Vancouver-Las Vegas ETD 1640H
- PR107 Las Vegas-Vancouver-Manila ETA 0430H (01Oct)
- PR209 Manila-Melbourne-Sydney ETD 2100H
- PR210 Sydney-Manila ETA 1720H (next day)
- PR102 Manila-Los Angeles ETD 2200H
- PR103 Los Angeles-Manila ETA 0605H (01Oct)
- PR104 Manila-San Francisco ETD 2230H
- PR105 San Francisco-Manila ETA 0540H (01 Oct)
Domestic
- PR811 Manila-Davao ETD 0900H
- PR812 Davao-Manila ETA 1340H
- PR853 Manila-Cebu ETD 0900H
- PR854 Cebu-Manila ETA 1230H
- PR226 Manila-Laoag ETD 0950H
- PR227 Laoag-Manila ETA 1230H
- PR861 Manila-Cebu ETD 1245H
- PR849 Manila-Cebu ETD 1530H
- PR850 Cebu-Manila ETA 1900H
- PR813 Manila-Davao ETD 1530H
- PR814 Davao-Manila ETA 2010H
All PAL flights not included in the above list are CANCELLED until further notice.
- PR189 Manila-Roxas ETD 0530H
- PR190 Roxas-Manila ETA 0800H
- PR281 Manila-Cagayan de Oro ETD 0600H
- PR282 Cagayan de Oro-Manila ETA 0920H
- PR175 Manila-Tagbilaran ETD 0850H
- PR176 Tagbilaran-Manila ETA 1200H
- PR141 Manila-Iloilo nETD 1250H
- PR142 Iloilo-Manila nETA 1435H
- PR391 Manila-Tacloban nETD 1010H
- PR392 Tacloban-Manila nETA 1315H
- PR197 Manila-Puerto Princesa ETD 1600H
- PR198 Puerto Princesa-Manila ETA 1905H
Passengers are advised to look for PAL-designated counters / PAL signages at Terminal 3. Free shuttle buses are stationed at Terminal 2 to ferry passengers Terminal 3.
Meanwhile, the following PAL flights will be operated in NAIA Terminal 2:
International
- PR466 Manila-Incheon nETD 0300H
- PR467 Incheon-Manila ETA
- PR358 Manila-Beijing ETD 0720H
- PR359 Beijing-Manila ETA 1740H
- PR896 Manila-Taipei ETD 0720H
- PR899 Taipei-Manila ETA 1930H
- PR334 Manila-Xiamen ETD 0740H
- PR335 Xiamen-Manila ETA 1325H
- PR300 Manila-Hong Kong ETD 0800H
- PR301 Hong Kong-Manila ETA 1315H
- PR426 Manila-Fukuoka ETD 1020H
- PR425 Fukuoka-Manila ETA 1830H
- PR730 Manila-Bangkok ETD 1025H
- PR731 Bangkok-Manila ETA 1820H
- PR336 Manila-Shanghai ETD 1130H
- PR337 Shanghai-Manila ETA 1930H
- PR438 Manila-Nagoya ETD 1330H
- PR437 Nagoya-Manila ETA 1245H (next day)
- PR408 Manila-Osaka ETD 1425H
- PR407 Osaka-Manila ETA 1305H (next day)
- PR432 Manila-Narita ETD 1430H
- PR431 Narita-Manila ETA 1310H (next day)
- PR468 Manila-Incheon ETD 1430H
- PR469 Incheon-Manila ETA 2340H
- PR306 Manila-Hong Kong ETD 1450H
- PR307 Hong Kong-Manila ETA 2005H
- PR100 Manila-Honolulu ETD 1520H
- PR101 Honolulu-Manila ETA 1435H (next day)
- PR106 Manila-Vancouver-Las Vegas ETD 1640H
- PR107 Las Vegas-Vancouver-Manila ETA 0430H (01Oct)
- PR209 Manila-Melbourne-Sydney ETD 2100H
- PR210 Sydney-Manila ETA 1720H (next day)
- PR102 Manila-Los Angeles ETD 2200H
- PR103 Los Angeles-Manila ETA 0605H (01Oct)
- PR104 Manila-San Francisco ETD 2230H
- PR105 San Francisco-Manila ETA 0540H (01 Oct)
Domestic
- PR811 Manila-Davao ETD 0900H
- PR812 Davao-Manila ETA 1340H
- PR853 Manila-Cebu ETD 0900H
- PR854 Cebu-Manila ETA 1230H
- PR226 Manila-Laoag ETD 0950H
- PR227 Laoag-Manila ETA 1230H
- PR861 Manila-Cebu ETD 1245H
- PR849 Manila-Cebu ETD 1530H
- PR850 Cebu-Manila ETA 1900H
- PR813 Manila-Davao ETD 1530H
- PR814 Davao-Manila ETA 2010H
All PAL flights not included in the above list are CANCELLED until further notice.
Philippine Airlines: Public Apology
The management of Philippine Airlines (PAL) extends its sincerest apologies to all passengers inconvenienced by the recent (Sept. 27, 2011) wildcat strike staged by the ground crew union (PALEA) at NAIA Terminal 2.
PAL volunteers (administrative staff and PALEA members who did not join the work stoppage) were immediately mobilized to replace the striking workers in an effort to resume operations.
PAL is grateful to the various airport and law enforcement agencies, our management volunteers and our loyal passengers for their continued patronage during these challenging times for the national flag carrier.
-- Philippine Airlines
PAL volunteers (administrative staff and PALEA members who did not join the work stoppage) were immediately mobilized to replace the striking workers in an effort to resume operations.
PAL is grateful to the various airport and law enforcement agencies, our management volunteers and our loyal passengers for their continued patronage during these challenging times for the national flag carrier.
-- Philippine Airlines
Wednesday, September 28, 2011
172 PAL flights canceled as ground workers strike
Manila Standard Today
September 28, 2011
by Jeremiah F. de Guzman and Eric B. Apolonio
PHILIPPINE Airlines canceled 172 flights into and out of its Manila hub on Tuesday after its ground workers refused to work to protest their impending layoff as a result of the company’s program to contract ground services from third-party providers.
PAL president and chief operating officer Jaime Bautista told reporters the work stoppage affected more than 14,000 passengers set to fly to and from the Ninoy Aquino International Airport Terminal 2.
“This morning, about 300 PAL ground workers on duty at the airport suddenly refused to perform their official functions in the ramp, check-in counters and catering areas,” Bautista said.
He said the incident forced the flag carrier to cancel flights from 9 a.m. to 6 p.m., affecting over 8,500 domestic and 5,500 international air travelers.
President Benigno Aquino III, who is in Japan, said the work stoppage showed “insensitivity to the riding public” and ordered Executive Secretary Paquito Ochoa Jr. to coordinate with the Labor Department and airport officials to resolve the problem.
Presidential spokesman Edwin Lacierda, quoting Labor Secretary Rosalinda Baldoz, said the airline management and ground workers were in a conciliation meeting, and said Mr. Aquino’s scheduled return on Wednesday would not be delayed by the strike.
The Philippine Airlines Employees Association said its members reported to work Tuesday, but stopped refueling planes, moving cargo or manning checkin counters at 7 a.m., leaving thousands of passengers stranded.
The union was protesting PAL’s plan to close down three departments—its call center, in-flight catering and airport services—by Sept. 30 and to subcontract those services.
About 2,600 workers will lose their jobs, but they have been offered new employment by the third-party providers Sky Kitchen and Sky Logistics owned by Cebu businessman Manny Osmeña and SPI Global Holdings owned by Philippine Long Distance Telephone Co.
“Palea has decided to act now instead of waiting for the onslaught of the outsourcing typhoon on Friday,” union president Gerry Rivera said.
“This is the mother of all protests against layoff and contractualization. Nobody will go home and we will not back down until our demand for job security is met.”
The PAL flights arriving from Seoul (PR 467) and Tokyo (PR 431) were transferred to NAIA Terminal 1 in coordination with the Manila International Airport Authority.
Bautista said the airline’s administrative staff were ready to take over, but management decided to defer their deployment to avoid a clash with ground workers.
Bautista said the airline was now coordinating with airport authorities, the Labor Department and the police to clear the counters and ramp areas of striking workers.
“We’re ready to resume operations anytime, so long as airport authorities and the police clear our work areas of illegal strikers,” he said.
Airport police gave striking workers until 4 p.m. to vacate their work areas, but not all of them had left two hours after the deadline passed.
Some were evicted after PAL declared their access passes invalid and a fistfight followed between union members and security personnel after some of them were forced out of the terminal. At the Terminal 2 check-in counters, security guards and airport police surrounded PAL employees, many of them women, who had linked arms.
PAL issued a memo declaring all ground employees affected by the spin-off that they were “off-duty” up to Sept. 30 with pay.
On Tuesday, PAL’s sister airline AirPhil Express said it accommodated some of the legacy carrier’s domestic passengers on its flights to and from NAIA 3.
“So far, we were able to comply [with our flights] while helping out in filling the needs of some affected PAL passengers,” AirPhil senior vice-president Alfredo Herrera said in a phone interview.
“But the volume of passengers we can accommodate [on Tuesday] depends on space availability because we also have our loads.”
Herrera said the budget carrier was ready to field extra flights to serve other PAL passengers. “If we have to, then we will field additional flights. We have available crew and aircraft.”
Bautista said they were now studying possible administrative and criminal charges against the the strikers.
“Our lawyers are preparing the appropriate charges to be filed against these workers,” he said.
September 28, 2011
by Jeremiah F. de Guzman and Eric B. Apolonio
PHILIPPINE Airlines canceled 172 flights into and out of its Manila hub on Tuesday after its ground workers refused to work to protest their impending layoff as a result of the company’s program to contract ground services from third-party providers.
PAL president and chief operating officer Jaime Bautista told reporters the work stoppage affected more than 14,000 passengers set to fly to and from the Ninoy Aquino International Airport Terminal 2.
“This morning, about 300 PAL ground workers on duty at the airport suddenly refused to perform their official functions in the ramp, check-in counters and catering areas,” Bautista said.
He said the incident forced the flag carrier to cancel flights from 9 a.m. to 6 p.m., affecting over 8,500 domestic and 5,500 international air travelers.
President Benigno Aquino III, who is in Japan, said the work stoppage showed “insensitivity to the riding public” and ordered Executive Secretary Paquito Ochoa Jr. to coordinate with the Labor Department and airport officials to resolve the problem.
Presidential spokesman Edwin Lacierda, quoting Labor Secretary Rosalinda Baldoz, said the airline management and ground workers were in a conciliation meeting, and said Mr. Aquino’s scheduled return on Wednesday would not be delayed by the strike.
The Philippine Airlines Employees Association said its members reported to work Tuesday, but stopped refueling planes, moving cargo or manning checkin counters at 7 a.m., leaving thousands of passengers stranded.
The union was protesting PAL’s plan to close down three departments—its call center, in-flight catering and airport services—by Sept. 30 and to subcontract those services.
About 2,600 workers will lose their jobs, but they have been offered new employment by the third-party providers Sky Kitchen and Sky Logistics owned by Cebu businessman Manny Osmeña and SPI Global Holdings owned by Philippine Long Distance Telephone Co.
“Palea has decided to act now instead of waiting for the onslaught of the outsourcing typhoon on Friday,” union president Gerry Rivera said.
“This is the mother of all protests against layoff and contractualization. Nobody will go home and we will not back down until our demand for job security is met.”
The PAL flights arriving from Seoul (PR 467) and Tokyo (PR 431) were transferred to NAIA Terminal 1 in coordination with the Manila International Airport Authority.
Bautista said the airline’s administrative staff were ready to take over, but management decided to defer their deployment to avoid a clash with ground workers.
Bautista said the airline was now coordinating with airport authorities, the Labor Department and the police to clear the counters and ramp areas of striking workers.
“We’re ready to resume operations anytime, so long as airport authorities and the police clear our work areas of illegal strikers,” he said.
Airport police gave striking workers until 4 p.m. to vacate their work areas, but not all of them had left two hours after the deadline passed.
Some were evicted after PAL declared their access passes invalid and a fistfight followed between union members and security personnel after some of them were forced out of the terminal. At the Terminal 2 check-in counters, security guards and airport police surrounded PAL employees, many of them women, who had linked arms.
PAL issued a memo declaring all ground employees affected by the spin-off that they were “off-duty” up to Sept. 30 with pay.
On Tuesday, PAL’s sister airline AirPhil Express said it accommodated some of the legacy carrier’s domestic passengers on its flights to and from NAIA 3.
“So far, we were able to comply [with our flights] while helping out in filling the needs of some affected PAL passengers,” AirPhil senior vice-president Alfredo Herrera said in a phone interview.
“But the volume of passengers we can accommodate [on Tuesday] depends on space availability because we also have our loads.”
Herrera said the budget carrier was ready to field extra flights to serve other PAL passengers. “If we have to, then we will field additional flights. We have available crew and aircraft.”
Bautista said they were now studying possible administrative and criminal charges against the the strikers.
“Our lawyers are preparing the appropriate charges to be filed against these workers,” he said.
Stormy labor row halts 172 PAL flights
Philippine Daily Inquirer
September 28, 2011
By: Paolo G. Montecillo
Thousands of passengers were stranded Tuesday as Philippine Airlines (PAL) canceled all flights to and from Manila after its employees refused to work in a last-ditch effort to save their jobs.
A total of 102 international flights and 70 domestic flights, which were supposed to carry around 14,000 passengers, were affected by the PAL Employees’ Association’s (Palea) protest.
The strike added to the travel chaos brought on by Typhoon “Pedring,” which made landfall earlier in the day and prompted the suspension of other domestic flights, ferry services and railway operations.
Members of Palea stopped working at 7 a.m. in protest of the company’s scheduled job cuts by the end of the week, forcing the Lucio Tan-led carrier to halt operations.
Employees reported for work but stopped refueling planes, moving cargo and manning check-in counters—among other jobs—leaving thousands of passengers stuck at the Ninoy Aquino International Airport Terminal 2 in Manila.
PAL’s management said flights would resume by 6 Tuesday night, starting with PR 145 to Iloilo.
PAL condemned what it described was illegal work stoppage, noting that those who participated in the protest would face administrative and criminal charges.
“About 300 PAL ground workers on duty at the airport suddenly refused to perform their official functions in the ramp, check-in counters and catering areas. Our lawyers are preparing the appropriate charges to be filed against these workers,” said PAL president Jaime J. Bautista.
Bautista said operations should be back to normal by Wednesday. The termination of the services of Palea members will take effect on Friday.
Apology
Affected passengers were endorsed on flights of other airlines, while others were transferred to hotels.
“Those who want to rebook or a refund of their tickets can proceed to PAL ticket offices,” PAL said in an advisory.
“PAL apologizes for the inconvenience as the airline goes through the difficult process of outsourcing its non-core services,” the airline added.
Palea president Gerry Rivera also apologized to passengers affected by the work stoppage.
The union official said the employees were left with no choice but to move to protect their jobs.
“Any inconvenience brought about by the protest is temporary. Ultimately the safe and efficient operation of PAL is guaranteed if employees are regular not contractual,” Rivera said at a press conference.
Palea’s work stoppage, which the union refuses to call a strike, is in protest of PAL’s plan to close down three departments, namely its call center reservations, in-flight catering and airport services, by the end of the week.
The 2,600 employees covered by the job cuts were offered positions at the third-party service providers that will replace the three closed departments. The companies are Sky Kitchen, Sky Logistics and SPi Global Holdings.
Palea claims that less than 15 percent of its members agreed to receive retirement benefits, while only 7 percent accepted jobs with the third-party companies.
PAL’s outsourcing plan, which was approved by the labor department and the Office of the President, is under appeal in the Court of Appeals. Palea has said the job cuts should not be carried out pending resolution of its appeal.
Replacement employees
At a separate briefing, PAL said it already had replacement employees to take the places of those who walked out. The new workers are made up of volunteers from the airline’s administrative staff and employees of the new service providers.
Bautista said the 2,600 workers to be affected by the outsourcing would be placed on leave with pay and would no longer be allowed inside the airport on October 1, when their termination takes effect.
But the 300 workers who took part in the work stoppage on Tuesday will have to face administrative and criminal charges. “We will hold them accountable,” the PAL president said.
Republic Act No. 9497, which created the Civil Aviation Authority of the Philippines, says that any person “who will cause disruptions in airport operations will be criminally liable.”
Conciliators
If found guilty, Palea members face as many as three years in prison and fines of up to P500,000 per person. Those who joined the work stoppage will also lose their retirement benefits, PAL said.
“We are ready to face any and all charges that they want to file against us,” Rivera said.
Labor Secretary Rosalinda Baldoz sent a team of conciliators to Ninoy Aquino International Airport to try to reconcile PAL management and the ground crew.
In a statement, Secretary Herminio Coloma of the Presidential Communications and Operations Office said President Aquino had directed Executive Secretary Paquito Ochoa to supervise efforts of the labor department, Civil Aviation Authority of the Philippines and Manila International Airport Authority in working closely with PAL management to resolve the matter.
Noting that the government was adhering to the rule of law in addressing Palea’s stand on outsourcing, Coloma called on the union “to do the same.”
In Cebu, the work stoppage forced hundreds of passengers to either rebook their flights to another date or to arrange flights with other airline companies. Four flights for Manila and five flights from Manila were canceled between 7 a.m. and 6 p.m. on Tuesday.
Passengers disembark
Mary Ann Dimabayao, public affairs manager of Mactan Cebu International Airport, said the flight cancellation came when passengers of the PR 848 had already checked in for departure at 8:05 a.m.
“The passengers were ordered to disembark at the arrival area and retrieve their luggage at the baggage carousel,” Dimabayao said.
She said the passengers were told that they could have their tickets rebooked at different PAL ticketing stations and that the management would waive rebooking and other fees.
Each canceled flight had more than 100 to 200 passengers depending on the plane’s capacity, said Eutiquio Bulambot, a Palea board member in Cebu and a regular worker for 35 years.
Bulambot, who is assigned at the check-in counter of PAL at the airport, said Palea members just wanted to protect their rights. There are more than 200 Palea members in Cebu.
CBA suspension
The dispute between PAL and Palea dates back to 1998 when Palea agreed to an unprecedented deal with management to suspend negotiations for new collective bargaining agreements (CBA) for 10 years, giving PAL the financial flexibility to return to profitability.
The airline was suffering massive losses due to the Asian financial crisis at the time, made worse by a pilot strike, which forced the airline to close down for several days.
PAL was forced to enter corporate rehabilitation and to trim down its fleet after being faced with dollar loans that had become harder to pay due to the peso’s sharp depreciation. When the CBA moratorium expired in 2008, PAL announced its plan to outsource the three departments.
Industry-wide trend
Bautista said the outsourcing of “noncore” units was an industry-wide trend being implemented by other airlines around the world. Industry profits have fallen steadily due to high fuel prices.
Last year, PAL posted a net income of $72.5 million, but the airline sank back into the red this year, posting a $10.6 million net loss in the April to June period of 2011.
Over the past five years, PAL has also struggled to compete with local budget carriers that have steadily chipped away at the flag carrier’s market share.
From being a virtual monopoly before 1998, PAL is now the second largest airline in the Philippines in terms of passengers flown. The company trails behind the Gokongwei family’s Cebu Pacific. With reports from AFP, Philip C. Tubeza and Christian Esguerra in Manila, and Jhunnex Napallacan, Inquirer Visayas
September 28, 2011
By: Paolo G. Montecillo
Thousands of passengers were stranded Tuesday as Philippine Airlines (PAL) canceled all flights to and from Manila after its employees refused to work in a last-ditch effort to save their jobs.
A total of 102 international flights and 70 domestic flights, which were supposed to carry around 14,000 passengers, were affected by the PAL Employees’ Association’s (Palea) protest.
The strike added to the travel chaos brought on by Typhoon “Pedring,” which made landfall earlier in the day and prompted the suspension of other domestic flights, ferry services and railway operations.
Members of Palea stopped working at 7 a.m. in protest of the company’s scheduled job cuts by the end of the week, forcing the Lucio Tan-led carrier to halt operations.
Employees reported for work but stopped refueling planes, moving cargo and manning check-in counters—among other jobs—leaving thousands of passengers stuck at the Ninoy Aquino International Airport Terminal 2 in Manila.
PAL’s management said flights would resume by 6 Tuesday night, starting with PR 145 to Iloilo.
PAL condemned what it described was illegal work stoppage, noting that those who participated in the protest would face administrative and criminal charges.
“About 300 PAL ground workers on duty at the airport suddenly refused to perform their official functions in the ramp, check-in counters and catering areas. Our lawyers are preparing the appropriate charges to be filed against these workers,” said PAL president Jaime J. Bautista.
Bautista said operations should be back to normal by Wednesday. The termination of the services of Palea members will take effect on Friday.
Apology
Affected passengers were endorsed on flights of other airlines, while others were transferred to hotels.
“Those who want to rebook or a refund of their tickets can proceed to PAL ticket offices,” PAL said in an advisory.
“PAL apologizes for the inconvenience as the airline goes through the difficult process of outsourcing its non-core services,” the airline added.
Palea president Gerry Rivera also apologized to passengers affected by the work stoppage.
The union official said the employees were left with no choice but to move to protect their jobs.
“Any inconvenience brought about by the protest is temporary. Ultimately the safe and efficient operation of PAL is guaranteed if employees are regular not contractual,” Rivera said at a press conference.
Palea’s work stoppage, which the union refuses to call a strike, is in protest of PAL’s plan to close down three departments, namely its call center reservations, in-flight catering and airport services, by the end of the week.
The 2,600 employees covered by the job cuts were offered positions at the third-party service providers that will replace the three closed departments. The companies are Sky Kitchen, Sky Logistics and SPi Global Holdings.
Palea claims that less than 15 percent of its members agreed to receive retirement benefits, while only 7 percent accepted jobs with the third-party companies.
PAL’s outsourcing plan, which was approved by the labor department and the Office of the President, is under appeal in the Court of Appeals. Palea has said the job cuts should not be carried out pending resolution of its appeal.
Replacement employees
At a separate briefing, PAL said it already had replacement employees to take the places of those who walked out. The new workers are made up of volunteers from the airline’s administrative staff and employees of the new service providers.
Bautista said the 2,600 workers to be affected by the outsourcing would be placed on leave with pay and would no longer be allowed inside the airport on October 1, when their termination takes effect.
But the 300 workers who took part in the work stoppage on Tuesday will have to face administrative and criminal charges. “We will hold them accountable,” the PAL president said.
Republic Act No. 9497, which created the Civil Aviation Authority of the Philippines, says that any person “who will cause disruptions in airport operations will be criminally liable.”
Conciliators
If found guilty, Palea members face as many as three years in prison and fines of up to P500,000 per person. Those who joined the work stoppage will also lose their retirement benefits, PAL said.
“We are ready to face any and all charges that they want to file against us,” Rivera said.
Labor Secretary Rosalinda Baldoz sent a team of conciliators to Ninoy Aquino International Airport to try to reconcile PAL management and the ground crew.
In a statement, Secretary Herminio Coloma of the Presidential Communications and Operations Office said President Aquino had directed Executive Secretary Paquito Ochoa to supervise efforts of the labor department, Civil Aviation Authority of the Philippines and Manila International Airport Authority in working closely with PAL management to resolve the matter.
Noting that the government was adhering to the rule of law in addressing Palea’s stand on outsourcing, Coloma called on the union “to do the same.”
In Cebu, the work stoppage forced hundreds of passengers to either rebook their flights to another date or to arrange flights with other airline companies. Four flights for Manila and five flights from Manila were canceled between 7 a.m. and 6 p.m. on Tuesday.
Passengers disembark
Mary Ann Dimabayao, public affairs manager of Mactan Cebu International Airport, said the flight cancellation came when passengers of the PR 848 had already checked in for departure at 8:05 a.m.
“The passengers were ordered to disembark at the arrival area and retrieve their luggage at the baggage carousel,” Dimabayao said.
She said the passengers were told that they could have their tickets rebooked at different PAL ticketing stations and that the management would waive rebooking and other fees.
Each canceled flight had more than 100 to 200 passengers depending on the plane’s capacity, said Eutiquio Bulambot, a Palea board member in Cebu and a regular worker for 35 years.
Bulambot, who is assigned at the check-in counter of PAL at the airport, said Palea members just wanted to protect their rights. There are more than 200 Palea members in Cebu.
CBA suspension
The dispute between PAL and Palea dates back to 1998 when Palea agreed to an unprecedented deal with management to suspend negotiations for new collective bargaining agreements (CBA) for 10 years, giving PAL the financial flexibility to return to profitability.
The airline was suffering massive losses due to the Asian financial crisis at the time, made worse by a pilot strike, which forced the airline to close down for several days.
PAL was forced to enter corporate rehabilitation and to trim down its fleet after being faced with dollar loans that had become harder to pay due to the peso’s sharp depreciation. When the CBA moratorium expired in 2008, PAL announced its plan to outsource the three departments.
Industry-wide trend
Bautista said the outsourcing of “noncore” units was an industry-wide trend being implemented by other airlines around the world. Industry profits have fallen steadily due to high fuel prices.
Last year, PAL posted a net income of $72.5 million, but the airline sank back into the red this year, posting a $10.6 million net loss in the April to June period of 2011.
Over the past five years, PAL has also struggled to compete with local budget carriers that have steadily chipped away at the flag carrier’s market share.
From being a virtual monopoly before 1998, PAL is now the second largest airline in the Philippines in terms of passengers flown. The company trails behind the Gokongwei family’s Cebu Pacific. With reports from AFP, Philip C. Tubeza and Christian Esguerra in Manila, and Jhunnex Napallacan, Inquirer Visayas
Monday, September 26, 2011
PAL cuts selected domestic and int'l flights for time being
Manila Bulletin
September 26, 2011
By Edu Lopez
MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off or outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations – Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off or outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
PAL will set up temporary cashier counters at convenient locations for ticket refunds and other transactions. All penalties shall be waived. The airline will also set up remote city check-in counters near the Ninoy Aquino International Airport (NAIA).
Passengers checking in at these remote counters shall be issued boarding passes and shuttled to NAIA Terminal 2 on air-conditioned buses. Priority will be given to those without check-in luggage.
“PAL is adopting contingency measures during the transition period to shield its customers from unnecessary inconvenience and hassles. We’re not taking any chances.
These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period,” Villaluna stressed.
September 26, 2011
By Edu Lopez
MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off or outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations – Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off or outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
PAL will set up temporary cashier counters at convenient locations for ticket refunds and other transactions. All penalties shall be waived. The airline will also set up remote city check-in counters near the Ninoy Aquino International Airport (NAIA).
Passengers checking in at these remote counters shall be issued boarding passes and shuttled to NAIA Terminal 2 on air-conditioned buses. Priority will be given to those without check-in luggage.
“PAL is adopting contingency measures during the transition period to shield its customers from unnecessary inconvenience and hassles. We’re not taking any chances.
These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period,” Villaluna stressed.
PAL cuts number of selected flights
The Philippine Star
September 26, 2011
By Rudy Santos
MANILA, Philippines - Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on Oct. 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off/outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations, namely: Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Apart from informing affected passengers, PAL has posted a complete and updated list of PAL flights at www.philippineairlines.com. For other inquiries passengers may also call PAL reservations at 858-8888 or their favorite travel agent.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off/outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
PAL will set up temporary cashier counters at convenient locations for ticket refunds and other transactions. All penalties shall be waived. The airline will also set up remote city check-in counters near the Ninoy Aquino International Airport (NAIA). Exact location will be announced very soon. Passengers checking in at these remote counters shall be issued boarding passes and shuttled to NAIA Terminal 2 on air-conditioned buses. Priority will be given to those without check-in luggage.
“PAL is adopting contingency measures during the transition period to shield its customers from unnecessary inconvenience and hassles. We’re not taking any chances. These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period,” Villaluna stressed.
“PAL seeks the understanding of the flying public. We are grateful to the Manila International Airport Authority, the Civil Aviation Authority of the Philippines, other government agencies and PAL’s corps of volunteers for their logistical support during this period,” she added.
September 26, 2011
By Rudy Santos
MANILA, Philippines - Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on Oct. 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off/outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations, namely: Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Apart from informing affected passengers, PAL has posted a complete and updated list of PAL flights at www.philippineairlines.com. For other inquiries passengers may also call PAL reservations at 858-8888 or their favorite travel agent.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off/outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
PAL will set up temporary cashier counters at convenient locations for ticket refunds and other transactions. All penalties shall be waived. The airline will also set up remote city check-in counters near the Ninoy Aquino International Airport (NAIA). Exact location will be announced very soon. Passengers checking in at these remote counters shall be issued boarding passes and shuttled to NAIA Terminal 2 on air-conditioned buses. Priority will be given to those without check-in luggage.
“PAL is adopting contingency measures during the transition period to shield its customers from unnecessary inconvenience and hassles. We’re not taking any chances. These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period,” Villaluna stressed.
“PAL seeks the understanding of the flying public. We are grateful to the Manila International Airport Authority, the Civil Aviation Authority of the Philippines, other government agencies and PAL’s corps of volunteers for their logistical support during this period,” she added.
Caap ensures smooth airport operations
Business Mirror
September 26, 2011
THE continuing mass protest of the Philippine Airlines Employees Association (Palea) against the spin-off of three noncore units of the flag carrier scheduled to start on October 1 has prompted the Civil Aviation Authority of the Philippines (Caap), over the weekend, to take measures to ensure smooth operations at the Ninoy Aquino International Airport (Naia) and other airports in the country.
Over the weekend, Caap Director General Ramon Gutierrez directed all Caap-owned and -operated airports, international airport authorities, government law enforcement and airport private security agencies to keep a tight watch on those who might sabotage or interfere with airport operations and communications and related facilities.
He ordered that his directive be distributed to all airport managers, officers in charge and other ranking officials in all of the more than 80 Caap-operated airports in the country.
The Caap charter states that “any person who destroys or seriously damage the facilities of airports shall be subjected to imprisonment or a fine of not less than P50,000.”
Also, persons who “interfere with air navigation faces imprisonment of not more than three years and a P50,000 fine.”
Gutierrez said any incident related to the above offenses must be documented and immediately reported to the Caap for possible filing of criminal charges.
The Palea continues to defy the offer of the airline management to accept the spin-off of its noncore unit airport services, inflight catering, and call-center reservations in a bid to make the airline lean and mean in the face of the continuing economic slowdown and high fuel prices eating into the airlines’ profit.
But defiant Gerry Rivera, Palea president and vice chairman of the party-list Partido ng Manggagawa, insists that the labor dispute can only be resolved if the present and any future owners of PAL “maintain and retain” all those affected by the spin-off.
Palea members continue to hold mass protest rallies at the Naia Terminal 2, where PAL maintains operations, and some eyewitnesses noted that some airline employees has had some verbal tussles with PAL volunteers who help during peak traffic hours at the airline counters.
Airline President Jaime Bautista said the PAL management has to adopt the restructuring plan to save the airline and ensure the continuous employment of its remaining 5,000 employees. “The spin-off is meant to ensure the survival of our 70-year-old institution.”
He cited the case of Japan Airlines, one of the world’s largest carriers, which filed for bankruptcy protection in 2010, prompting the Tokyo government to infuse fresh funds into the state-backed carrier.
September 26, 2011
THE continuing mass protest of the Philippine Airlines Employees Association (Palea) against the spin-off of three noncore units of the flag carrier scheduled to start on October 1 has prompted the Civil Aviation Authority of the Philippines (Caap), over the weekend, to take measures to ensure smooth operations at the Ninoy Aquino International Airport (Naia) and other airports in the country.
Over the weekend, Caap Director General Ramon Gutierrez directed all Caap-owned and -operated airports, international airport authorities, government law enforcement and airport private security agencies to keep a tight watch on those who might sabotage or interfere with airport operations and communications and related facilities.
He ordered that his directive be distributed to all airport managers, officers in charge and other ranking officials in all of the more than 80 Caap-operated airports in the country.
The Caap charter states that “any person who destroys or seriously damage the facilities of airports shall be subjected to imprisonment or a fine of not less than P50,000.”
Also, persons who “interfere with air navigation faces imprisonment of not more than three years and a P50,000 fine.”
Gutierrez said any incident related to the above offenses must be documented and immediately reported to the Caap for possible filing of criminal charges.
The Palea continues to defy the offer of the airline management to accept the spin-off of its noncore unit airport services, inflight catering, and call-center reservations in a bid to make the airline lean and mean in the face of the continuing economic slowdown and high fuel prices eating into the airlines’ profit.
But defiant Gerry Rivera, Palea president and vice chairman of the party-list Partido ng Manggagawa, insists that the labor dispute can only be resolved if the present and any future owners of PAL “maintain and retain” all those affected by the spin-off.
Palea members continue to hold mass protest rallies at the Naia Terminal 2, where PAL maintains operations, and some eyewitnesses noted that some airline employees has had some verbal tussles with PAL volunteers who help during peak traffic hours at the airline counters.
Airline President Jaime Bautista said the PAL management has to adopt the restructuring plan to save the airline and ensure the continuous employment of its remaining 5,000 employees. “The spin-off is meant to ensure the survival of our 70-year-old institution.”
He cited the case of Japan Airlines, one of the world’s largest carriers, which filed for bankruptcy protection in 2010, prompting the Tokyo government to infuse fresh funds into the state-backed carrier.
Cathay Pacific appoints new executives
Manila Bulletin
September 26, 2011, 4:02pm
MANILA, Philippines — Martin Xu has been named Cathay Pacific Philippines new Country Manager following Ed Higgs’ 3-year stint in the position. The transition coincided with the carrier’s Chicago destination launch at the Manila Polo Club, where Xu was officially welcomed to the team.
A graduate of the prestigious Chinese University of Hong Kong, he joined the premium carrier in 2002 as a management trainee, and gained experience by working in its different departments including marketing, inflight services and commercial sales. He became manager for East Indonesia in 2007, and moved on to become the International Affairs Manager in 2009 — also the last position he held before taking over the reins of Cathay Pacific’s Philippine operations.
Xu, who has been with the airline for 10 years, has conveyed his enthusiasm for his new post and aims to maintain the carrier’s strong performance in the past years.
“I look forward to working with a talented team to continue strengthening Cathay Pacific’s leadership position in the Philippines. The airline has always been known for its high quality and service standards, and consumers can rest assured that we will work tirelessly to provide them with the kind of experience they’ve come to expect from us, and to give them more reasons to fly Cathay Pacific.”
Other movements within the Cathay Pacific Group include newly appointed Cebu Manager Maggie Wong and Dragonair Chief Representative Walter Li. Wong, a Ball State University graduate, first joined the carrier in 2008 as Assistant to Director Cargo, subsequently becoming Assistant to General Manager SE Asia, Acting Manager for Penang, and finally, Executive Assistant to Chief Operating Officer Cathay Pacific Airways Ltd. Li, on the other hand, has a graduate degree in accounting from Washington University in St. Louis. He served as a Personnel Officer for the airline prior to being appointed to his latest post.
The Cathay Pacific Group offers passenger and cargo services to 145 destinations in Asia, North America, Middle East, Europe and Africa. Operating over 120 wide-body aircraft, the Group flies one of the youngest fleets in the air. The high level of personal service the Cathay Pacific Group offers sets it apart and wins it passenger loyalty and industry awards.
September 26, 2011, 4:02pm
MANILA, Philippines — Martin Xu has been named Cathay Pacific Philippines new Country Manager following Ed Higgs’ 3-year stint in the position. The transition coincided with the carrier’s Chicago destination launch at the Manila Polo Club, where Xu was officially welcomed to the team.
A graduate of the prestigious Chinese University of Hong Kong, he joined the premium carrier in 2002 as a management trainee, and gained experience by working in its different departments including marketing, inflight services and commercial sales. He became manager for East Indonesia in 2007, and moved on to become the International Affairs Manager in 2009 — also the last position he held before taking over the reins of Cathay Pacific’s Philippine operations.
Xu, who has been with the airline for 10 years, has conveyed his enthusiasm for his new post and aims to maintain the carrier’s strong performance in the past years.
“I look forward to working with a talented team to continue strengthening Cathay Pacific’s leadership position in the Philippines. The airline has always been known for its high quality and service standards, and consumers can rest assured that we will work tirelessly to provide them with the kind of experience they’ve come to expect from us, and to give them more reasons to fly Cathay Pacific.”
Other movements within the Cathay Pacific Group include newly appointed Cebu Manager Maggie Wong and Dragonair Chief Representative Walter Li. Wong, a Ball State University graduate, first joined the carrier in 2008 as Assistant to Director Cargo, subsequently becoming Assistant to General Manager SE Asia, Acting Manager for Penang, and finally, Executive Assistant to Chief Operating Officer Cathay Pacific Airways Ltd. Li, on the other hand, has a graduate degree in accounting from Washington University in St. Louis. He served as a Personnel Officer for the airline prior to being appointed to his latest post.
The Cathay Pacific Group offers passenger and cargo services to 145 destinations in Asia, North America, Middle East, Europe and Africa. Operating over 120 wide-body aircraft, the Group flies one of the youngest fleets in the air. The high level of personal service the Cathay Pacific Group offers sets it apart and wins it passenger loyalty and industry awards.
Sunday, September 25, 2011
Inaugural Asean intelligence conference on terrorism starts
Business Mirror
September 25, 2011
THE military will hold on Tuesday the two-day inaugural meeting of the Asean Militaries Analyst-to-Analyst Intelligence Exchange (Amaie) Conference on Terrorism.
“The two day-activity will assess the current strengths and capabilities of terrorists within the region, evaluate the role of the media in promoting terrorist ideological propaganda,” said the Armed Forces Public Information Office chief Col. Arnulfo Marcelo Burgos.
“[Participants] will also share best practices and experiences with various analytical tools and techniques with the end view of formulating a regional approach in support of counterterrorism,” Burgos said.
He said the holding of the intelligence exchange meeting was agreed upon during the 8th Asean Military Intelligence Informal Meeting and the 8th Asean Chiefs of Defense Informal Meeting held from March 28 to April 1 in Jakarta, Indonesia.
The conference, which will be opened by the Armed Forces Vice Chief of Staff Lt. Gen. Reynaldo Mapagu and the Armed Forces Deputy Chief of Staff Lt. Gen. Anthony Alcantara, has as its theme “Working Toward Convergence in Combating Terrorism within the Asean Region.”
The first Asean anti-terrorism exchange was a brainchild of the Armed Forces through the deputy chief of staff for intelligence, Maj. Gen. Francisco Cruz.
“It was designed not only to build ties and enhance networking between and among Asean military intelligence analysts but also to strengthen military cooperation among and within the Asean region through sharing of best practices and lessons learned, particularly in countering terrorism,” Cruz said.
“This endeavor is under the ambit of the envisioned Asean Politico-Security Community by 2015 that is characterized by a cohesive, peaceful and resilient region with shared responsibility for comprehensive security,” Cruz added.
Burgos said the meeting was among the activities envisioned to broaden the cooperation among Asean counties in dealing with pressing regional security challenges.
He said each of the 10 Asean countries will be sending terrorism subject matter expert with the hope of laying the groundwork for future exchanges and information sharing.
September 25, 2011
THE military will hold on Tuesday the two-day inaugural meeting of the Asean Militaries Analyst-to-Analyst Intelligence Exchange (Amaie) Conference on Terrorism.
“The two day-activity will assess the current strengths and capabilities of terrorists within the region, evaluate the role of the media in promoting terrorist ideological propaganda,” said the Armed Forces Public Information Office chief Col. Arnulfo Marcelo Burgos.
“[Participants] will also share best practices and experiences with various analytical tools and techniques with the end view of formulating a regional approach in support of counterterrorism,” Burgos said.
He said the holding of the intelligence exchange meeting was agreed upon during the 8th Asean Military Intelligence Informal Meeting and the 8th Asean Chiefs of Defense Informal Meeting held from March 28 to April 1 in Jakarta, Indonesia.
The conference, which will be opened by the Armed Forces Vice Chief of Staff Lt. Gen. Reynaldo Mapagu and the Armed Forces Deputy Chief of Staff Lt. Gen. Anthony Alcantara, has as its theme “Working Toward Convergence in Combating Terrorism within the Asean Region.”
The first Asean anti-terrorism exchange was a brainchild of the Armed Forces through the deputy chief of staff for intelligence, Maj. Gen. Francisco Cruz.
“It was designed not only to build ties and enhance networking between and among Asean military intelligence analysts but also to strengthen military cooperation among and within the Asean region through sharing of best practices and lessons learned, particularly in countering terrorism,” Cruz said.
“This endeavor is under the ambit of the envisioned Asean Politico-Security Community by 2015 that is characterized by a cohesive, peaceful and resilient region with shared responsibility for comprehensive security,” Cruz added.
Burgos said the meeting was among the activities envisioned to broaden the cooperation among Asean counties in dealing with pressing regional security challenges.
He said each of the 10 Asean countries will be sending terrorism subject matter expert with the hope of laying the groundwork for future exchanges and information sharing.
Philippine Airlines cuts flights
The Philippine Star
September 25, 2011
MANILA, Philippines—Flag-carrier Philippine Airlines said Saturday it would temporarily slash flight frequencies over the next two months as part of a cost-saving program that would also eliminate 2,600 jobs.
Eleven flights to Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon would be affected from October 1, or 12 percent of the international total, a PAL statement said.
Thirty percent of local flights would be suspended as catering, ground handling and call center reservations are farmed out to third-party service providers, PAL spokeswoman Cielo Villaluna said.
“These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period.”
Normal service would resume on varying dates in October and November, she added.
The loss-making carrier earlier announced it would eliminate 2,600 ground crew posts on September 30, saving the carrier about $15 million in operating costs.
It said this would help it save the jobs of the remaining 4,000-plus staff.
PAL, Asia’s oldest airline, suffered a net loss of $10.6 million for the three months to June.
The airline had posted a $31.6 million net profit in the same period last year, on the way to $72.5 million earnings in the 12 months to March, which was a turnaround from a $14.4 million loss in its previous fiscal year.
September 25, 2011
MANILA, Philippines—Flag-carrier Philippine Airlines said Saturday it would temporarily slash flight frequencies over the next two months as part of a cost-saving program that would also eliminate 2,600 jobs.
Eleven flights to Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon would be affected from October 1, or 12 percent of the international total, a PAL statement said.
Thirty percent of local flights would be suspended as catering, ground handling and call center reservations are farmed out to third-party service providers, PAL spokeswoman Cielo Villaluna said.
“These measures will help alleviate the inevitable minor kinks in PAL’s service as we go though this difficult but necessary transition period.”
Normal service would resume on varying dates in October and November, she added.
The loss-making carrier earlier announced it would eliminate 2,600 ground crew posts on September 30, saving the carrier about $15 million in operating costs.
It said this would help it save the jobs of the remaining 4,000-plus staff.
PAL, Asia’s oldest airline, suffered a net loss of $10.6 million for the three months to June.
The airline had posted a $31.6 million net profit in the same period last year, on the way to $72.5 million earnings in the 12 months to March, which was a turnaround from a $14.4 million loss in its previous fiscal year.
PAL reduces flights; measures up
Manila Bulletin
September 25, 2011
MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off/outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations, namely: Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Apart from informing affected passengers, PAL has posted a complete and updated list of PAL flights at www.philippineairlines.com. For other inquiries passengers may also call PAL reservations at 858-8888 or their favorite travel agent.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off/outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
September 25, 2011
MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off/outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations, namely: Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Apart from informing affected passengers, PAL has posted a complete and updated list of PAL flights at www.philippineairlines.com. For other inquiries passengers may also call PAL reservations at 858-8888 or their favorite travel agent.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off/outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
Saturday, September 24, 2011
PAL and the reality on the ground
Manila Standard Today
September 24, 2011
Back Channel
By Alejandro Del Rosario
Speculations are rife that Philippine Airlines is for sale. The business sections of Manila dailies are replete with stories of tycoons and taipans casting a covetous eye on PAL.
The airline’s problem with the employees’ union and its recent setback from a Supreme Court ruling reinstating dismissed members of the Flight Attendants and Stewards Association of the Philippines and awarding them back wages would be enough to make any businessman throw in the towel.
While taipan Lucio Tan would like to keep PAL afloat, good business sense dictates that he can only do so if he can cut losses by outsourcing the airline’s non-core jobs like catering, airport services and passenger reservations call centers. Some 2,500 employees would be affected by the outsourcing plan that has been upheld by Labor Secretary Rosalinda Baldoz. An appeal by the Philippine Airline Employees Association to Malacañang has been denied and the union has brought its case before the Court of Appeals.
Employees who will be retrenched by Sept. 30 this year have been given the option to accept jobs with the companies PAL contracted for the outsourcing work. It’s a bitter pill to swallow for the affected workers but the airline also has to bite the bullet as it has to pay the retrenched employees a hefty sum in compliance with a court ruling mandating a fair separation pay.
Some 400 union members have availed of the separation package plus the option to be hired by PAL’s contracted outsourcing company.
Taking the money and still having a job made sense to some of the employees. The hardliners in the union, however, decry the loss of their seniority if they agree to be contractual workers.
The reality on the ground though is that whoever takes over the national flag carrier would not keep the remaining workers. Hong Kong-based First Pacific Co. Ltd , reportedly told brokers of the deal that it favors outsourcing because it wants a “lean and mean” airline to be competitive with foreign carriers and domestic market rival Cebu Pacific.
Because of the staggering cost of maintaining and operating an airline, foreign carriers too have opted to merge and also outsource some of their non-core business. What PAL is doing is simply following market trends to survive stiff competition.
However, Ramon Ang, a close business associate of Tan, told reporters that the taipan is not selling and would prefer forging an alliance with a foreign carrier. Ang added that although Tan has no cash flow problem, he would welcome the entry of a new investor to pursue plans for the upgrade of its present fleet and acquisition of new planes.
Ang also clarified that conglomerate SMC is not looking to buy PAL “but it’s me who is personally looking at it.” This confirms his standing as a major player in Philippine business. He already owns the posh Diamond Hotel on Roxas Boulevard which he bought from a Japanese group.
Vic Agustin’s column Cocktales in the Manila Standard’s business section, seems to have the inside track on this latest wheeling and dealing for PAL . His reported sighting of First Pacific’s Manuel V. Pangilinan and PAL president Jaime Bautista together is fueling the talk about Lucio Tan’s exit from the airline business.
Giving further credence to MVP’s acquisition of PAL is the recent news of First Pacific putting up a new aviation company called Pacific Global One Aviation Inc., without doubt a subsidiary firm to serve as support system for a PAL under new management.
Here for sex
While still on the subject of travel and tourism, US Ambassador Harry Thomas’ remarks that “40 percent of male tourists come to the Philippines for sex” drew varied reactions from the locals. No need for Wikileaks to leak that one.
Even if true, it was a diplomatic gaffe and something ambassadors do not say publicly about the host country they are posted in. It would be akin to Philippine Ambassador to Washington. Joey Cuisia, saying he does not feel safe in the US capital because of its high crime rate, even if it’s true.
“I’m not sure where he (Thomas) got that info,” Tourism Assistant Secretary Bong Bengzon said. He cited DOT market research showing visitors to the Philippines come here for bargain shopping, our beach resorts and adventure tourism..
Ambassador Thomas’ observation has no basis, Bengzon said, adding that “the Philippines is a very wholesome destination.”
Thomas made the remark during a round table discussion with Court of Appeals justices on the problem of human trafficking. The justices and the Philippine public are aware of the problem of human trafficking. They don’t have to be told by the US ambassador who should know his protocol and nuances of local culture.
Meanwhile, where was newly appointed Tourism Secretary Ramon Jimenez during all this brouhaha? He with the quotable “the Philippines is as easy to sell as Chickenjoy,” was missing in action.
September 24, 2011
Back Channel
By Alejandro Del Rosario
Speculations are rife that Philippine Airlines is for sale. The business sections of Manila dailies are replete with stories of tycoons and taipans casting a covetous eye on PAL.
The airline’s problem with the employees’ union and its recent setback from a Supreme Court ruling reinstating dismissed members of the Flight Attendants and Stewards Association of the Philippines and awarding them back wages would be enough to make any businessman throw in the towel.
While taipan Lucio Tan would like to keep PAL afloat, good business sense dictates that he can only do so if he can cut losses by outsourcing the airline’s non-core jobs like catering, airport services and passenger reservations call centers. Some 2,500 employees would be affected by the outsourcing plan that has been upheld by Labor Secretary Rosalinda Baldoz. An appeal by the Philippine Airline Employees Association to Malacañang has been denied and the union has brought its case before the Court of Appeals.
Employees who will be retrenched by Sept. 30 this year have been given the option to accept jobs with the companies PAL contracted for the outsourcing work. It’s a bitter pill to swallow for the affected workers but the airline also has to bite the bullet as it has to pay the retrenched employees a hefty sum in compliance with a court ruling mandating a fair separation pay.
Some 400 union members have availed of the separation package plus the option to be hired by PAL’s contracted outsourcing company.
Taking the money and still having a job made sense to some of the employees. The hardliners in the union, however, decry the loss of their seniority if they agree to be contractual workers.
The reality on the ground though is that whoever takes over the national flag carrier would not keep the remaining workers. Hong Kong-based First Pacific Co. Ltd , reportedly told brokers of the deal that it favors outsourcing because it wants a “lean and mean” airline to be competitive with foreign carriers and domestic market rival Cebu Pacific.
Because of the staggering cost of maintaining and operating an airline, foreign carriers too have opted to merge and also outsource some of their non-core business. What PAL is doing is simply following market trends to survive stiff competition.
However, Ramon Ang, a close business associate of Tan, told reporters that the taipan is not selling and would prefer forging an alliance with a foreign carrier. Ang added that although Tan has no cash flow problem, he would welcome the entry of a new investor to pursue plans for the upgrade of its present fleet and acquisition of new planes.
Ang also clarified that conglomerate SMC is not looking to buy PAL “but it’s me who is personally looking at it.” This confirms his standing as a major player in Philippine business. He already owns the posh Diamond Hotel on Roxas Boulevard which he bought from a Japanese group.
Vic Agustin’s column Cocktales in the Manila Standard’s business section, seems to have the inside track on this latest wheeling and dealing for PAL . His reported sighting of First Pacific’s Manuel V. Pangilinan and PAL president Jaime Bautista together is fueling the talk about Lucio Tan’s exit from the airline business.
Giving further credence to MVP’s acquisition of PAL is the recent news of First Pacific putting up a new aviation company called Pacific Global One Aviation Inc., without doubt a subsidiary firm to serve as support system for a PAL under new management.
Here for sex
While still on the subject of travel and tourism, US Ambassador Harry Thomas’ remarks that “40 percent of male tourists come to the Philippines for sex” drew varied reactions from the locals. No need for Wikileaks to leak that one.
Even if true, it was a diplomatic gaffe and something ambassadors do not say publicly about the host country they are posted in. It would be akin to Philippine Ambassador to Washington. Joey Cuisia, saying he does not feel safe in the US capital because of its high crime rate, even if it’s true.
“I’m not sure where he (Thomas) got that info,” Tourism Assistant Secretary Bong Bengzon said. He cited DOT market research showing visitors to the Philippines come here for bargain shopping, our beach resorts and adventure tourism..
Ambassador Thomas’ observation has no basis, Bengzon said, adding that “the Philippines is a very wholesome destination.”
Thomas made the remark during a round table discussion with Court of Appeals justices on the problem of human trafficking. The justices and the Philippine public are aware of the problem of human trafficking. They don’t have to be told by the US ambassador who should know his protocol and nuances of local culture.
Meanwhile, where was newly appointed Tourism Secretary Ramon Jimenez during all this brouhaha? He with the quotable “the Philippines is as easy to sell as Chickenjoy,” was missing in action.
Wednesday, September 21, 2011
Ang: Foreign airlines eyeing PAL
Business Mirror
September 21, 2011
By Paul Anthony A. Isla
While their companies are fierce rivals in the country’s beer market, tycoon Lucio Tan has found a business adviser in San Miguel Corp. (SMC) President and Chief Operating Officer Ramon Ang.
Ang told reporters on Tuesday he is brainstorming with Tan on how to come up with new ideas and better solutions and ways to run PAL.
Ang made it clear he is in direct talks with Tan in a personal capacity and not as SMC president. He said he has a “personal” interest in the aviation industry but that SMC is not considering investing in the airline.
Ang said he is providing Tan with business and strategy advice and that there’s nothing wrong with him helping facilitate the entry of new investors. “I’m close to them so I’m helping them in whatever way I can. Certainly, Tan is not selling PAL,” he said.
While describing Tan as “rich and awash with cash” who does not really need anybody’s money, Ang said “if there is a foreign company willing to invest, then Tan is amenable to that, too.”
According to Ang, he heard “some famous foreign airlines” are interested to join and support Tan in his interests; he didn’t identify the airlines.
He even went further to say foreign airlines have approached and are in talks with PAL to discuss the likelihood of partnering with the country’s flag carrier. Asked for comment, Jaime Bautista, president of PAL, said it is no longer talking with a foreign airline, which he refused to name. He also said talks with a foreign airline were first initiated a year ago “when we were having labor problems.”
“For now I know the talks have not been revived,” he said in a text message on Tuesday. “Maybe if we start to implement the outsourcing [plan], talks may be revived.”
On October 1 PAL plans to cut 2,600 jobs to ensure its long-term profitability and curtail its mounting losses.
Speculations about a new investor in PAL resurfaced over the weekend when it was announced that Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp. have formed a new aviation company by Pacific Global One Aviation Inc. PLDT President Napoleon Nazareno quickly dismissed talks on Monday that PLDT may invest in PAL. That same day Bautista also said he was not aware of any talks involving new investors, including Ang or PLDT Chairman Manuel V. Pangilinan.
On Tuesday shares of PAL Holdings Inc., which owns Philippine Airlines Inc., sank 3.2 percent to P6.12, the sharpest loss since August 25, after the BusinessMirror reported PLDT is not buying the airline.
Ang, who said he is “not interested to get in partnership with anybody”—a reference to the PLDT group—believes PAL might agree to have a foreign airline “or anybody” join the company. “But I don’t believe Tan will sell [PAL],” he said.
(With Lenie Lectura)
September 21, 2011
By Paul Anthony A. Isla
While their companies are fierce rivals in the country’s beer market, tycoon Lucio Tan has found a business adviser in San Miguel Corp. (SMC) President and Chief Operating Officer Ramon Ang.
Ang told reporters on Tuesday he is brainstorming with Tan on how to come up with new ideas and better solutions and ways to run PAL.
Ang made it clear he is in direct talks with Tan in a personal capacity and not as SMC president. He said he has a “personal” interest in the aviation industry but that SMC is not considering investing in the airline.
Ang said he is providing Tan with business and strategy advice and that there’s nothing wrong with him helping facilitate the entry of new investors. “I’m close to them so I’m helping them in whatever way I can. Certainly, Tan is not selling PAL,” he said.
While describing Tan as “rich and awash with cash” who does not really need anybody’s money, Ang said “if there is a foreign company willing to invest, then Tan is amenable to that, too.”
According to Ang, he heard “some famous foreign airlines” are interested to join and support Tan in his interests; he didn’t identify the airlines.
He even went further to say foreign airlines have approached and are in talks with PAL to discuss the likelihood of partnering with the country’s flag carrier. Asked for comment, Jaime Bautista, president of PAL, said it is no longer talking with a foreign airline, which he refused to name. He also said talks with a foreign airline were first initiated a year ago “when we were having labor problems.”
“For now I know the talks have not been revived,” he said in a text message on Tuesday. “Maybe if we start to implement the outsourcing [plan], talks may be revived.”
On October 1 PAL plans to cut 2,600 jobs to ensure its long-term profitability and curtail its mounting losses.
Speculations about a new investor in PAL resurfaced over the weekend when it was announced that Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp. have formed a new aviation company by Pacific Global One Aviation Inc. PLDT President Napoleon Nazareno quickly dismissed talks on Monday that PLDT may invest in PAL. That same day Bautista also said he was not aware of any talks involving new investors, including Ang or PLDT Chairman Manuel V. Pangilinan.
On Tuesday shares of PAL Holdings Inc., which owns Philippine Airlines Inc., sank 3.2 percent to P6.12, the sharpest loss since August 25, after the BusinessMirror reported PLDT is not buying the airline.
Ang, who said he is “not interested to get in partnership with anybody”—a reference to the PLDT group—believes PAL might agree to have a foreign airline “or anybody” join the company. “But I don’t believe Tan will sell [PAL],” he said.
(With Lenie Lectura)
Foreign carriers seek tie-up with PAL
Manila Standard Today
September 21, 2011
Philippine Airlines is in talks with foreign airlines for a possible partnership, businessman Ramon Ang, a close friend of airline owner Lucio Tan, said Tuesday.
Ang, president and chief executive of conglomerate San Miguel Corp., told reporters at the sidelines of an agreement signing between Petron Corp. and the Environment Department that Tan would not likely sell the airline.
“[He] may agree for anybody or a foreign airline to join them, but I don’t believe Mr. Tan will sell [PAL],” Ang said.
Ang said he consults with the Tan family in his personal capacity and that San Miguel is not involved in the discussions.
“We are reviewing all opportunity. SMC is not looking at it, it’s me personally who is looking at it,” he said.
San Miguel has interests in power, oil, airport, coal, food, beverages and other investments.
“I heard there are some famous foreign airlines interested in joining [and] supporting him [and] tallking directly to him [Tan]. If I can help facilitate [the entry of new investors], why not?” he said.
Ang said his involvement in PAL was to provide business advice and strategy to the Tan family.
“I’m close to them so I’m in talks with them [in] whatever way I can help them, that’s what I’m doing. Mr. Tan is not selling PAL. Mr. Tan is very friendly to me and if I can help suggest any forms of improvement, I will,” he said.
He said Tan was “awash with cash” but “if there is a foreign company, big company, interested to join him, he’s amenable.”
He discounted the possibility of any partnership with Manuel Pangilinan, chairman of Philippine Long Distance Telephone Co., in PAL.
PAL plans to cut 2,600 jobs by Oct. 1 to ensure its long-term profitability and curtail mounting losses. Alena Mae S. Flores
September 21, 2011
Philippine Airlines is in talks with foreign airlines for a possible partnership, businessman Ramon Ang, a close friend of airline owner Lucio Tan, said Tuesday.
Ang, president and chief executive of conglomerate San Miguel Corp., told reporters at the sidelines of an agreement signing between Petron Corp. and the Environment Department that Tan would not likely sell the airline.
“[He] may agree for anybody or a foreign airline to join them, but I don’t believe Mr. Tan will sell [PAL],” Ang said.
Ang said he consults with the Tan family in his personal capacity and that San Miguel is not involved in the discussions.
“We are reviewing all opportunity. SMC is not looking at it, it’s me personally who is looking at it,” he said.
San Miguel has interests in power, oil, airport, coal, food, beverages and other investments.
“I heard there are some famous foreign airlines interested in joining [and] supporting him [and] tallking directly to him [Tan]. If I can help facilitate [the entry of new investors], why not?” he said.
Ang said his involvement in PAL was to provide business advice and strategy to the Tan family.
“I’m close to them so I’m in talks with them [in] whatever way I can help them, that’s what I’m doing. Mr. Tan is not selling PAL. Mr. Tan is very friendly to me and if I can help suggest any forms of improvement, I will,” he said.
He said Tan was “awash with cash” but “if there is a foreign company, big company, interested to join him, he’s amenable.”
He discounted the possibility of any partnership with Manuel Pangilinan, chairman of Philippine Long Distance Telephone Co., in PAL.
PAL plans to cut 2,600 jobs by Oct. 1 to ensure its long-term profitability and curtail mounting losses. Alena Mae S. Flores
Monday, September 19, 2011
Philippine Airlines seeks dialogue with union on spin-off
Philippine Daily Inquirer
August 19, 2011
By Doris C. Dumlao
Flag carrier Philippine Airlines is seeking a dialogue with its union leaders for a “smooth” and “orderly” implementation of a spin-off program recently upheld by Malacañang, even as its workers prepare to mount another protest action this Monday against the restructuring plan.
The Lucio Tan-led airline on Thursday said it would invite leaders of the PAL Employees Association (Palea) to discuss the implementation of the program after the company got a Palace imprimatur on its plan to spin off its catering, ground handling and call center reservation units.
But Palea said its lawyers were preparing to raise the matter before the Court of Appeals, and that it would continue opposing Malacañang’s decision which the group said would lead to the layoff of 2,600 employees and reduce them to contractual workers under third-party service providers.
Town hall-style meeting
In a statement, PAL spokesperson Cielo Villaluna said the management also planned to hold town hall-style meetings in the affected departments to discuss the mechanics of the spin-off.
Primers will be distributed to guide workers on how to avail themselves of retirement benefits and gratuity pay, which will be processed on a “first come, first served” basis, the company said.
PAL maintained that Malacañang’s decision further validated the management’s plan to fold up non-core units and transfer their functions to third-party service providers.
No date has been set yet for the implementation, but PAL is allocating some P2.5 billion in severance benefits for the affected workers.
Under an October 2010 order by Labor Secretary Rosalinda Baldoz, they will receive separation pay equivalent to 125 percent of their monthly salary for every year of service, P50,000 in cash as gratuity pay and other non-cash benefits. Malacañang earlier granted an additional P50,000 as gratuity pay.
The company claimed that several workers of the affected units had already expressed interest in the package as the three independent service providers await the smooth transition of operations.
The spin-off plan is purportedly meant to stabilize PAL’s finances amid the lingering effects of the global recession.
PAL lost $312 million during its 2008 and 2009 fiscal years ending March. It posted a net profit of $72.5 million in 2010 but swung back to a negative bottom line with $10.6 million in net losses for the first quarter of the current fiscal year.
Gerry Rivera, president of Palea and vice chair of Partido ng Manggagawa (PM), noted that “with the Office of the President’s decision permitting PAL to retrench thousands of workers despite billions in profit, President Aquino has unveiled his fire-all-you-can policy.”
‘’This overturns the provisions of the Labor Code and jurisprudence of the courts that serious financial losses are a necessary ground for retrenchment,” Rivera said in a statement.
Palea, PM and the Church-Labor Conference have scheduled a motorcade on Aug. 22 to protest the Palace decision and press their campaign against contractualization. The motorcade will start at the corner of Buendia and Roxas Boulevard and proceed to Ayala Avenue in Makati City.
‘Trying-hard copycat’
“P-Noy’s (Mr. Aquino’s) employment policy is a second-rate, trying-hard copycat of American industrial relations where giant money-making corporations can fire at will. But he should beware since the result of flexible employment relations in the US was not economic progress but financial crisis,” Rivera said.
‘’The unequal distribution of wealth is at the root of the global financial crash of 2008 and even the present threat of a double-dip recession in the US,” the labor leader added.
Palea said the Palace did not consider the group’s argument that outsourcing was not necessary for the flag carrier to survive. “Since PAL is awash in profits even without outsourcing, then there is no reason for it to retrench employees,” Rivera said
August 19, 2011
By Doris C. Dumlao
Flag carrier Philippine Airlines is seeking a dialogue with its union leaders for a “smooth” and “orderly” implementation of a spin-off program recently upheld by Malacañang, even as its workers prepare to mount another protest action this Monday against the restructuring plan.
The Lucio Tan-led airline on Thursday said it would invite leaders of the PAL Employees Association (Palea) to discuss the implementation of the program after the company got a Palace imprimatur on its plan to spin off its catering, ground handling and call center reservation units.
But Palea said its lawyers were preparing to raise the matter before the Court of Appeals, and that it would continue opposing Malacañang’s decision which the group said would lead to the layoff of 2,600 employees and reduce them to contractual workers under third-party service providers.
Town hall-style meeting
In a statement, PAL spokesperson Cielo Villaluna said the management also planned to hold town hall-style meetings in the affected departments to discuss the mechanics of the spin-off.
Primers will be distributed to guide workers on how to avail themselves of retirement benefits and gratuity pay, which will be processed on a “first come, first served” basis, the company said.
PAL maintained that Malacañang’s decision further validated the management’s plan to fold up non-core units and transfer their functions to third-party service providers.
No date has been set yet for the implementation, but PAL is allocating some P2.5 billion in severance benefits for the affected workers.
Under an October 2010 order by Labor Secretary Rosalinda Baldoz, they will receive separation pay equivalent to 125 percent of their monthly salary for every year of service, P50,000 in cash as gratuity pay and other non-cash benefits. Malacañang earlier granted an additional P50,000 as gratuity pay.
The company claimed that several workers of the affected units had already expressed interest in the package as the three independent service providers await the smooth transition of operations.
The spin-off plan is purportedly meant to stabilize PAL’s finances amid the lingering effects of the global recession.
PAL lost $312 million during its 2008 and 2009 fiscal years ending March. It posted a net profit of $72.5 million in 2010 but swung back to a negative bottom line with $10.6 million in net losses for the first quarter of the current fiscal year.
Gerry Rivera, president of Palea and vice chair of Partido ng Manggagawa (PM), noted that “with the Office of the President’s decision permitting PAL to retrench thousands of workers despite billions in profit, President Aquino has unveiled his fire-all-you-can policy.”
‘’This overturns the provisions of the Labor Code and jurisprudence of the courts that serious financial losses are a necessary ground for retrenchment,” Rivera said in a statement.
Palea, PM and the Church-Labor Conference have scheduled a motorcade on Aug. 22 to protest the Palace decision and press their campaign against contractualization. The motorcade will start at the corner of Buendia and Roxas Boulevard and proceed to Ayala Avenue in Makati City.
‘Trying-hard copycat’
“P-Noy’s (Mr. Aquino’s) employment policy is a second-rate, trying-hard copycat of American industrial relations where giant money-making corporations can fire at will. But he should beware since the result of flexible employment relations in the US was not economic progress but financial crisis,” Rivera said.
‘’The unequal distribution of wealth is at the root of the global financial crash of 2008 and even the present threat of a double-dip recession in the US,” the labor leader added.
Palea said the Palace did not consider the group’s argument that outsourcing was not necessary for the flag carrier to survive. “Since PAL is awash in profits even without outsourcing, then there is no reason for it to retrench employees,” Rivera said
Friday, September 16, 2011
FLIGHT ADVISORY:
FLIGHT ADVISORY: Passengers for tomorrow's flights (September 16, 2011) are advised to leave much earlier than usual for the airport, or at least four hours before their scheduled departure time, in anticipation of heavy traffic along the roads leading to the Ninoy Aquino International Airport (NAIA).
The PAL Employees Association is expected to conduct mass actions within the vicinity of the airport in celebration of PALEA's anniversary.
The PAL Employees Association is expected to conduct mass actions within the vicinity of the airport in celebration of PALEA's anniversary.
PAL’s service providers urged to file for DOLE accreditation
Business Mirror
September 16-17, 2011
By Sara Susanne D. Fabunan
The service providers of Philippine Airlines (PAL) are welcome to file their respective certificates of registration before the Department of Labor and Employment (DOLE) to avoid legal complications as they take over the airline’s three outsourced departments on October 1.
DOLE National Capital Region Director Raymundo Agravante said SkyKitchen Philippines Inc., SkyLogistics Philippines Inc. and SPi Global—the three service providers chosen by PAL—can file their accreditation with the DOLE “anytime.”
Requirements include a duly accomplished and notarized form, certified true copy of certificates of registration with the Securities and Exchange Commission, Department of Trade and Industry, local business permits and other supporting documents. Registration fee is P100.
“Processing normally takes only 24 hours. If they file today, they will be accredited the next day as long as they meet all requirements,” Agravante said.
On September 7 Agravante issued a certification—on the request of the PAL Employees Association (Palea)—attesting that PAL’s three service providers are not registered with DOLE as service contractors in accordance with DOLE Department Order 18-02.
A similar certification was requested by Palea from DOLE Cebu on September 12. Agravante stressed nothing is preventing PAL’s service providers from filing the applications for DOLE accreditation.
The statement douses cold water on Palea’s claim that PAL’s service providers are “bogus, labor-only” contracting firms due to alleged lack of DOLE accreditation. It turns out, however, that these firms can file their applications anytime, as the DOLE said.
Earlier, Agravante created a Quick Response Team to help PAL and the more than 2,000 workers who will be displaced by the flag carrier’s outsourcing program.
He said his office received a copy of PAL’s notice of termination that the airline sent to its 2,164 Metro Manila-based workers on August 26. Similar separation letters were sent to DOLE Cebu for its workers based in the area.
Agravante said the Quick Response Team was created to facilitate and help ensure “the payment of monetary benefits and to provide package of assistance to would-be displaced workers.”
September 16-17, 2011
By Sara Susanne D. Fabunan
The service providers of Philippine Airlines (PAL) are welcome to file their respective certificates of registration before the Department of Labor and Employment (DOLE) to avoid legal complications as they take over the airline’s three outsourced departments on October 1.
DOLE National Capital Region Director Raymundo Agravante said SkyKitchen Philippines Inc., SkyLogistics Philippines Inc. and SPi Global—the three service providers chosen by PAL—can file their accreditation with the DOLE “anytime.”
Requirements include a duly accomplished and notarized form, certified true copy of certificates of registration with the Securities and Exchange Commission, Department of Trade and Industry, local business permits and other supporting documents. Registration fee is P100.
“Processing normally takes only 24 hours. If they file today, they will be accredited the next day as long as they meet all requirements,” Agravante said.
On September 7 Agravante issued a certification—on the request of the PAL Employees Association (Palea)—attesting that PAL’s three service providers are not registered with DOLE as service contractors in accordance with DOLE Department Order 18-02.
A similar certification was requested by Palea from DOLE Cebu on September 12. Agravante stressed nothing is preventing PAL’s service providers from filing the applications for DOLE accreditation.
The statement douses cold water on Palea’s claim that PAL’s service providers are “bogus, labor-only” contracting firms due to alleged lack of DOLE accreditation. It turns out, however, that these firms can file their applications anytime, as the DOLE said.
Earlier, Agravante created a Quick Response Team to help PAL and the more than 2,000 workers who will be displaced by the flag carrier’s outsourcing program.
He said his office received a copy of PAL’s notice of termination that the airline sent to its 2,164 Metro Manila-based workers on August 26. Similar separation letters were sent to DOLE Cebu for its workers based in the area.
Agravante said the Quick Response Team was created to facilitate and help ensure “the payment of monetary benefits and to provide package of assistance to would-be displaced workers.”
Monday, September 12, 2011
PAL’s case vs pilots gets boost
Business Mirror
September 12, 2011
By Joel San Juan
THE Court of Appeals has revived the bid of flag carrier Philippine Airlines to collect more than P730 million in damages from the Airline Pilots Association of the Philippines (Alpap) and its former officers who participated in a strike in 1998 which paralyzed its international and domestic operations.
In a 26-page decision written by Associate Justice Ramon Cruz, the CA’s Thirteenth Division modified the ruling issued by the National Labor Relations Commission (NLRC) on February 26, 2010, which dismissed the complaint for damages filed by PAL owing to lack of jurisdiction and prescription.
While the NLRC was correct in holding that the jurisdiction over PAL’s claim for damages arising from the illegal strike belongs to the civil courts, the CA said it gravely abused its direction in declaring that PAL’s complaint had already prescribed because of its failure to file the same within the three-year prescriptive period.
The CA gave credence to the argument of PAL that it could only file a complaint for damages arising from the illegality of the Alpap strike after the finality of the Supreme Court’s decision declaring the June 1998 Alpap strike as illegal, not before.
PAL explained that it is because the complaint is based on the illegality of the strike staged by Alpap and its officers and members.
The appellate court agreed with PAL that until the issue pertaining to the legality of the strike is finally settled, the filing of the suit for damages is premature and it will be considered a “groundless suit.”
“The Supreme Court decision resolving the illegality of the strike attained finality only on August 29, 2002. It was only then that private respondents’ act of abandoning their aircraft had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business, assuming such could be proven by the petitioner,” the CA said.
“Stated differently, petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal,” it added.
Concurring with the ruling were Associate Justices Jose Reyes Jr. and Antonio Villamor.
Records indicate that Alpap officers and members went on strike on June 5, 1998, which PAL claimed was deliberately done to coincide with the peak season for air travel, summer vacation and at a time when thousands of overseas Filipinos were set to travel to the Philippines for the country’s centennial celebration.
On the second day of the strike, PAL asserted that the striking Alpap members abandoned their assigned aircraft, together with their passengers and cargo at Bangkok, Thailand, and San Fransciso, California, USA.
As a result, the passengers were left stranded, rendering PAL liable for violation of its contract of carriage and forcing it to incur expenses by way of hotel accommodations and meals for passengers, airport parking fees and other operational expenses.
The illegal strike staged by Alpap pilots also crippled PAL’s operations, resulting in losses consisting of ticket refunds, extraordinary expenses to cope with the shutdown and lost income from canceled flights.
The striking pilots refused to heed the return-to-work order issued by the secretary of labor at the time, prompting PAL management to declare that the pilots have lost their employment status.
The appellate court subsequently upheld the ruling of the Department of Labor and Employment which declared the strike as illegal, prompting the pilots to elevate the case before the SC.
September 12, 2011
By Joel San Juan
THE Court of Appeals has revived the bid of flag carrier Philippine Airlines to collect more than P730 million in damages from the Airline Pilots Association of the Philippines (Alpap) and its former officers who participated in a strike in 1998 which paralyzed its international and domestic operations.
In a 26-page decision written by Associate Justice Ramon Cruz, the CA’s Thirteenth Division modified the ruling issued by the National Labor Relations Commission (NLRC) on February 26, 2010, which dismissed the complaint for damages filed by PAL owing to lack of jurisdiction and prescription.
While the NLRC was correct in holding that the jurisdiction over PAL’s claim for damages arising from the illegal strike belongs to the civil courts, the CA said it gravely abused its direction in declaring that PAL’s complaint had already prescribed because of its failure to file the same within the three-year prescriptive period.
The CA gave credence to the argument of PAL that it could only file a complaint for damages arising from the illegality of the Alpap strike after the finality of the Supreme Court’s decision declaring the June 1998 Alpap strike as illegal, not before.
PAL explained that it is because the complaint is based on the illegality of the strike staged by Alpap and its officers and members.
The appellate court agreed with PAL that until the issue pertaining to the legality of the strike is finally settled, the filing of the suit for damages is premature and it will be considered a “groundless suit.”
“The Supreme Court decision resolving the illegality of the strike attained finality only on August 29, 2002. It was only then that private respondents’ act of abandoning their aircraft had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business, assuming such could be proven by the petitioner,” the CA said.
“Stated differently, petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal,” it added.
Concurring with the ruling were Associate Justices Jose Reyes Jr. and Antonio Villamor.
Records indicate that Alpap officers and members went on strike on June 5, 1998, which PAL claimed was deliberately done to coincide with the peak season for air travel, summer vacation and at a time when thousands of overseas Filipinos were set to travel to the Philippines for the country’s centennial celebration.
On the second day of the strike, PAL asserted that the striking Alpap members abandoned their assigned aircraft, together with their passengers and cargo at Bangkok, Thailand, and San Fransciso, California, USA.
As a result, the passengers were left stranded, rendering PAL liable for violation of its contract of carriage and forcing it to incur expenses by way of hotel accommodations and meals for passengers, airport parking fees and other operational expenses.
The illegal strike staged by Alpap pilots also crippled PAL’s operations, resulting in losses consisting of ticket refunds, extraordinary expenses to cope with the shutdown and lost income from canceled flights.
The striking pilots refused to heed the return-to-work order issued by the secretary of labor at the time, prompting PAL management to declare that the pilots have lost their employment status.
The appellate court subsequently upheld the ruling of the Department of Labor and Employment which declared the strike as illegal, prompting the pilots to elevate the case before the SC.
Court allows PAL to sue striking pilots for damages
Manila Standard Today
September 12, 2011
By Rey E. Requejo
THE Court of Appeals has allowed Philippine Airlines to pursue P730 million in damages from the Airline Pilots Association of the Philippines and its former officers who joined an illegal strike in 1998 that crippled its international and domestic operations.
The court’s 13th Division said the National Labor Relations Commission erred when it dismissed the airline’s complaint for damages because it failed to file it within the three-year prescriptive period. It agreed with the airline that it could not file a complaint for damages until the Supreme Court had passed judgment on the strike’s legality.
“The Supreme Court decision resolving the illegality of the strike attained finality only on Aug. 29, 2002,” Associate Justice Ramon Cruz said in his decision.
“It was only then that private respondents’ act of abandoning their aircraft had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business.”
The Pilot union’s officers and members struck on June 5, 1998, an action that the airline said was done deliberately to coincide with the peak season for air travel, and at a time when thousands of Filipinos abroad were set to travel to the Philippines for its 1998 centennial celebration.
The airline said the pilots abandoned their aircraft and passengers in Bangkok and San Francisco in California on the second day of the strike, stranding the passengers and forcing the airline to shoulder their hotel expenses.
The illegal strike also crippled the airline’s operations because it had to cancel flights and refund tickets.
The striking pilots ignored the Labor Department’s return-to-work order, prompting it to declare that they had lost their employment status.
Subsequently, the appellate court upheld the Labor Department’s ruling declaring the strike as illegal, and that prompted the pilots to elevate the case to the Supreme Court.
The high court dismissed the union’s petition on April 10, 2002, and that decision became final in August 2009.
September 12, 2011
By Rey E. Requejo
THE Court of Appeals has allowed Philippine Airlines to pursue P730 million in damages from the Airline Pilots Association of the Philippines and its former officers who joined an illegal strike in 1998 that crippled its international and domestic operations.
The court’s 13th Division said the National Labor Relations Commission erred when it dismissed the airline’s complaint for damages because it failed to file it within the three-year prescriptive period. It agreed with the airline that it could not file a complaint for damages until the Supreme Court had passed judgment on the strike’s legality.
“The Supreme Court decision resolving the illegality of the strike attained finality only on Aug. 29, 2002,” Associate Justice Ramon Cruz said in his decision.
“It was only then that private respondents’ act of abandoning their aircraft had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business.”
The Pilot union’s officers and members struck on June 5, 1998, an action that the airline said was done deliberately to coincide with the peak season for air travel, and at a time when thousands of Filipinos abroad were set to travel to the Philippines for its 1998 centennial celebration.
The airline said the pilots abandoned their aircraft and passengers in Bangkok and San Francisco in California on the second day of the strike, stranding the passengers and forcing the airline to shoulder their hotel expenses.
The illegal strike also crippled the airline’s operations because it had to cancel flights and refund tickets.
The striking pilots ignored the Labor Department’s return-to-work order, prompting it to declare that they had lost their employment status.
Subsequently, the appellate court upheld the Labor Department’s ruling declaring the strike as illegal, and that prompted the pilots to elevate the case to the Supreme Court.
The high court dismissed the union’s petition on April 10, 2002, and that decision became final in August 2009.
CA affirms PAL’s P730-M lawsuit vs striking pilots
Philippine Daily Inquirer
September 12, 2011
By Marlon Ramos
The Court of Appeals has given the go-signal for Philippine Airlines (PAL) to proceed with its P730-million damage suit against its former pilots who staged a labor strike that crippled the flag carrier’s operations about 13 years ago.
In reversing the Feb. 26, 2010, resolution of the National Labor Relations Commission, the appellate court said the NLRC erred when it ruled that PAL forfeited its right to claim damages when it filed the case outside the three-year prescriptive period for filing such legal action.
In its Aug. 26 decision, the court upheld PAL’s argument that its claim for damages could only be filed once the Supreme Court rendered its final judgment in a separate case for illegal strike that the airline earlier filed against members of Airline Pilots Association of the Philippines (Alpap).
PAL said the damage suit had depended on the result of the question of legality it has raised with the court in connection with the work stoppage that Alpap spearheaded on June 5, 1998.
The appellate court said that since the high tribunal had resolved the first case with finality only on Aug. 29, 2002, “it was only then that (the pilots’) act of abandoning their aircraft had been declared illegal.”
“(H)ence, they (pilots) could already be held culpable for causing injury to (PAL’s) business, assuming such could be proven by the petitioner,” the court said in a 26-page ruling penned by Associate Justice Ramon Cruz.
Associate Justices Jose Reyes Jr. and Antonio Villamor agreed with Cruz’s decision.
If PAL had sued Alpap before the resolution of the illegal labor strike case attained finality, the court said the complaint might have been considered “premature” and a “groundless suit.”
“Stated differently, (the) petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal,” it maintained.
However, the appellate court affirmed the NLRC’s decision to throw out the case for lack of jurisdiction, saying damage claims should be filed before the civil courts and not with the quasijudicial labor body.
After the high court ruled on the case with finality, PAL lodged the multimillion-peso civil suit against Alpap members in April 2003.
But the labor arbiter dismissed the case due to lack of jurisdiction and prescription, prompting PAL to elevate the case to the appellate court.
The case stemmed from the decision of Alpap to stage a 22-day strike in June 1998 in protest of PAL’s alleged unfair labor practices, crippling the flag carrier’s domestic and international flights.
At the height of the work stoppage, the airline dismissed nearly 5,000 workers purportedly to stave off PAL’s impending closure.
September 12, 2011
By Marlon Ramos
The Court of Appeals has given the go-signal for Philippine Airlines (PAL) to proceed with its P730-million damage suit against its former pilots who staged a labor strike that crippled the flag carrier’s operations about 13 years ago.
In reversing the Feb. 26, 2010, resolution of the National Labor Relations Commission, the appellate court said the NLRC erred when it ruled that PAL forfeited its right to claim damages when it filed the case outside the three-year prescriptive period for filing such legal action.
In its Aug. 26 decision, the court upheld PAL’s argument that its claim for damages could only be filed once the Supreme Court rendered its final judgment in a separate case for illegal strike that the airline earlier filed against members of Airline Pilots Association of the Philippines (Alpap).
PAL said the damage suit had depended on the result of the question of legality it has raised with the court in connection with the work stoppage that Alpap spearheaded on June 5, 1998.
The appellate court said that since the high tribunal had resolved the first case with finality only on Aug. 29, 2002, “it was only then that (the pilots’) act of abandoning their aircraft had been declared illegal.”
“(H)ence, they (pilots) could already be held culpable for causing injury to (PAL’s) business, assuming such could be proven by the petitioner,” the court said in a 26-page ruling penned by Associate Justice Ramon Cruz.
Associate Justices Jose Reyes Jr. and Antonio Villamor agreed with Cruz’s decision.
If PAL had sued Alpap before the resolution of the illegal labor strike case attained finality, the court said the complaint might have been considered “premature” and a “groundless suit.”
“Stated differently, (the) petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal,” it maintained.
However, the appellate court affirmed the NLRC’s decision to throw out the case for lack of jurisdiction, saying damage claims should be filed before the civil courts and not with the quasijudicial labor body.
After the high court ruled on the case with finality, PAL lodged the multimillion-peso civil suit against Alpap members in April 2003.
But the labor arbiter dismissed the case due to lack of jurisdiction and prescription, prompting PAL to elevate the case to the appellate court.
The case stemmed from the decision of Alpap to stage a 22-day strike in June 1998 in protest of PAL’s alleged unfair labor practices, crippling the flag carrier’s domestic and international flights.
At the height of the work stoppage, the airline dismissed nearly 5,000 workers purportedly to stave off PAL’s impending closure.
PAL to collect P703M from pilots in '98 strike
Manila Bulletin
September 12, 2011
By Leonardo D. Postrado
MANILA, Philippines -- Philippine Airlines (PAL) received the green light from the Court of Appeals (CA) to collect more than P730 million in damages from the Airline Pilots Association of the Philippines (ALPAP) and its former officers who went on strike in 1998, paralyzing the flag-carrier’s international and domestic operations.
The CA’s 13th Division ruled to modify the Feb. 26, 2010 decision of the National Labor Relations Commission (NLRC) dismissing the complaint for damages filed by PAL because of “lack of jurisdiction” and “prescription.”
In a 26-page decision penned by Associate Justice Ramon Cruz, the appellate court stated that the NLRC exercised grave abuse in discretion when it ruled against PAL’s complaint on the basis that it failed to file for damages within the three-year prescription period from the time of the strike.
The CA favored PAL’s argument that the time for filing the petition for damages only came after a final ruling from the Supreme Court (SC) declaring the June, 1998 ALPAP strike as illegal, and not before that.
Until the issue pertaining to the legality of the strike is finally settled, the filing of the suit for damages is premature or considered a “groundless suit,” the CA ruled.
“The Supreme Court decision resolving the illegality of the strike attained finality only on Aug. 29, 2002. It was only then that private respondents’ act of abandoning their aircrafts had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business, assuming such could be proven by the petitioner,” the CA said.
It added: “Stated differently, petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal.”
Concurring with the ruling were Associate Justices Jose Reyes, Jr. and Antonio Villamor.
On June 5, 1998, the ALPAP officers and members went on what PAL claimed was a “deliberate work strike” since it coincided with the peak season for air travel, summer vacation, and at a time when thousands of Filipinos overseas were set to travel to the Philippines for the 1998 Centennial Celebration.
PAL, on the second day of the strike, asserted that the protesting ALPAP pilots abandoned their respective assigned aircraft, together with their passengers and cargo at the airports in Bangkok, Thailand and San Fransciso, USA.
As a result, the passengers were stranded, rendering PAL liable for violation of its contract of carriage and forcing it to incur expenses by way of hotel accommodations and meals for passengers, airport parking fees and other operational expenses.
The illegal strike stage by ALPAP pilots also crippled PAL’s operations, resulting in losses consisting of ticket refunds, extraordinary expenses to cope with the shutdown and lost income from cancelled flights.
September 12, 2011
By Leonardo D. Postrado
MANILA, Philippines -- Philippine Airlines (PAL) received the green light from the Court of Appeals (CA) to collect more than P730 million in damages from the Airline Pilots Association of the Philippines (ALPAP) and its former officers who went on strike in 1998, paralyzing the flag-carrier’s international and domestic operations.
The CA’s 13th Division ruled to modify the Feb. 26, 2010 decision of the National Labor Relations Commission (NLRC) dismissing the complaint for damages filed by PAL because of “lack of jurisdiction” and “prescription.”
In a 26-page decision penned by Associate Justice Ramon Cruz, the appellate court stated that the NLRC exercised grave abuse in discretion when it ruled against PAL’s complaint on the basis that it failed to file for damages within the three-year prescription period from the time of the strike.
The CA favored PAL’s argument that the time for filing the petition for damages only came after a final ruling from the Supreme Court (SC) declaring the June, 1998 ALPAP strike as illegal, and not before that.
Until the issue pertaining to the legality of the strike is finally settled, the filing of the suit for damages is premature or considered a “groundless suit,” the CA ruled.
“The Supreme Court decision resolving the illegality of the strike attained finality only on Aug. 29, 2002. It was only then that private respondents’ act of abandoning their aircrafts had been declared illegal and hence, they could already be held culpable for causing injury to petitioner’s business, assuming such could be proven by the petitioner,” the CA said.
It added: “Stated differently, petitioner’s cause of action only accrued upon finality of the Supreme Court decision declaring private respondents’ strike to be illegal.”
Concurring with the ruling were Associate Justices Jose Reyes, Jr. and Antonio Villamor.
On June 5, 1998, the ALPAP officers and members went on what PAL claimed was a “deliberate work strike” since it coincided with the peak season for air travel, summer vacation, and at a time when thousands of Filipinos overseas were set to travel to the Philippines for the 1998 Centennial Celebration.
PAL, on the second day of the strike, asserted that the protesting ALPAP pilots abandoned their respective assigned aircraft, together with their passengers and cargo at the airports in Bangkok, Thailand and San Fransciso, USA.
As a result, the passengers were stranded, rendering PAL liable for violation of its contract of carriage and forcing it to incur expenses by way of hotel accommodations and meals for passengers, airport parking fees and other operational expenses.
The illegal strike stage by ALPAP pilots also crippled PAL’s operations, resulting in losses consisting of ticket refunds, extraordinary expenses to cope with the shutdown and lost income from cancelled flights.
Friday, September 9, 2011
To finance spin-off, outsourcing, PAL obtains $50-M credit line
Manila Bulletin
September 9, 2011
MANILA, Philippines — Flag carrier Philippine Airlines (PAL) has sealed an agreement with Credit Suisse to help finance part of the P2.5-billion spin off/outsourcing program set to take effect on October 1, 2011.
PAL chief finance officer Jose Gabriel Olives said the European bank agreed to lend PAL US$50-million which the airline will use to pay the separation and other transition benefits of close to 2,400 workers affected by the spin off/outsourcing.
“The agreement has been signed. All affected workers from PAL’s catering, ground handling and call center reservations units can rest assured that they will be paid in full by October 2011 as promised,” said Olives.
The PAL CFO said that aside from Credit Suisse, other PAL creditors fully support the airline’s spin off/outsourcing program that seeks to restructure and make the airline leaner and more competitive in the long-term. He stressed that PAL will proceed with the spin off/outsourcing as scheduled.
“Of course, management will maintain the status quo if the Court of Appeals issues a restraining order. But to date, we have received no such order preventing us from carrying out the spin off/outsourcing which has been upheld as valid by the Department of Labor and Employment and the Office of the President,” he said.
Olives added that PAL’s service providers SkyKitchen Philippines, Inc. (catering), SkyLogistics Philippines, Inc. (ground handling) and SPi Global (call center) are busy processing the applications of PAL personnel who accepted job offers.
September 9, 2011
MANILA, Philippines — Flag carrier Philippine Airlines (PAL) has sealed an agreement with Credit Suisse to help finance part of the P2.5-billion spin off/outsourcing program set to take effect on October 1, 2011.
PAL chief finance officer Jose Gabriel Olives said the European bank agreed to lend PAL US$50-million which the airline will use to pay the separation and other transition benefits of close to 2,400 workers affected by the spin off/outsourcing.
“The agreement has been signed. All affected workers from PAL’s catering, ground handling and call center reservations units can rest assured that they will be paid in full by October 2011 as promised,” said Olives.
The PAL CFO said that aside from Credit Suisse, other PAL creditors fully support the airline’s spin off/outsourcing program that seeks to restructure and make the airline leaner and more competitive in the long-term. He stressed that PAL will proceed with the spin off/outsourcing as scheduled.
“Of course, management will maintain the status quo if the Court of Appeals issues a restraining order. But to date, we have received no such order preventing us from carrying out the spin off/outsourcing which has been upheld as valid by the Department of Labor and Employment and the Office of the President,” he said.
Olives added that PAL’s service providers SkyKitchen Philippines, Inc. (catering), SkyLogistics Philippines, Inc. (ground handling) and SPi Global (call center) are busy processing the applications of PAL personnel who accepted job offers.
PAL to get $50-M loan for outsourcing program
Business Mirror
September 9-10, 2011
By Lenie Lectura
FLAG carrier Philippine Airlines (PAL) will borrow $50 million from Credit Suisse to partly finance the flag carrier’s P2.5-billion outsourcing program set to take effect on October 1.
The amount, said PAL chief finance officer Jose Gabriel Olives, will be used to pay the separation and other transition benefits of close to 2,400 affected workers.?An agreement to lend PAL the amount was already signed with the European bank.
“The agreement has been signed. All affected workers from PAL’s catering, ground handling and call center reservations units can rest assured that they will be paid in full by October 2011 as promised,” said Olives.
The PAL official said aside from Credit Suisse, other PAL creditors fully support the airline’s spinoff program that seeks to restructure and make the airline leaner and more competitive in the long term.
Olives said PAL’s domestic and international creditor banks are well informed about the program and recognize this as a global industry trend, especially in the airline industry.
He stressed that PAL will proceed with the spinoff-outsourcing program as originally scheduled. “Of course, the management will maintain the status quo if the Court of Appeals (CA) issues a restraining order. But to-date, we have received no such order preventing us from carrying out the spinoff/outsourcing which has been upheld as valid by the Department of Labor and Employment and the Office of the President,” he said.
Olives added that PAL’s service providers—SkyKitchen Philippines Inc. (for catering), SkyLogistics Philippines Inc. (for ground handling) and SPi Global (for call center services)—are processing the applications of PAL personnel who accepted job offers.
These service providers are committed to absorb all PAL workers to be affected by the spinoff/outsourcing. Interested workers had until yesterday to signify their intention to work for the service firms starting October 1.
PAL workers affected by the spinoff will receive the following: separation pay in the amount of 125 percent of their monthly basic salary for every year of service; P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leave credits; and trip pass benefits. On appeal before the Office of the President, the Labor department’s ruling was affirmed but was slightly modified by increasing the gratuity pay by another P50,000 per worker.
In addition, PAL is offering a one-year extension of medical and hospitalization benefits and guaranteed pay for one year of whatever salary is granted by the service providers to those who choose to be employed by the new contractors.
The spinoff program is a chief component of PAL’s survival plan launched in early 2010 after it lost $312 million for the 2008 and 2009 fiscal years. While it posted modest profits of $72.5 million in 2010, it is again back in the red after recording $10.6 million in losses for the first quarter of the current fiscal year brought about by the effects of unstable fuel prices, the devastating tsunami in Japan and lingering conflicts in the Middle East and North Africa. The flag carrier also continues to suffer from the protracted Category 2 rating of Philippine civil aviation regulators, the European Union blacklist against Philippine carriers, cut-throat competition and a host of other external factors.
Meanwhile, the management of Sky Kitchen and Sky Logistics confirmed that they are not registered with the Department of Labor and Employment (DOLE).
In a text message sent yesterday, it maintained that they have the necessary permits and licenses to operate as a service enterprise. “We are unaware however that a service provider company needs to register with DOLE,” the management said.
“We assure everybody, however, that in the performance of our service SKY will comply with all the legal requirements” it added.
The reply was in answer to charges lodged by PAL union legal counsel Marlon Manuel that service providers Sky Kitchen Philippines Inc., Sky Logistics Philippines Inc. and SPI Global Holdings Inc. are operating illegally.
Representing the Philippine Airlines Employees Association (Palea), Manuel said they received a letter on September 7 confirming that the three said providers are not registered as a contractor or sub-contractor.
Citing a DOLE certification, labor department for the National Capital Region (NCR) director Raymundo Agravante stated that the three service providers are in violation of the Department Order 18 Series of 2002.
The three service providers are now included in the case Palea filed before the Court of Appeals.
(With Sara Fabunan)
September 9-10, 2011
By Lenie Lectura
FLAG carrier Philippine Airlines (PAL) will borrow $50 million from Credit Suisse to partly finance the flag carrier’s P2.5-billion outsourcing program set to take effect on October 1.
The amount, said PAL chief finance officer Jose Gabriel Olives, will be used to pay the separation and other transition benefits of close to 2,400 affected workers.?An agreement to lend PAL the amount was already signed with the European bank.
“The agreement has been signed. All affected workers from PAL’s catering, ground handling and call center reservations units can rest assured that they will be paid in full by October 2011 as promised,” said Olives.
The PAL official said aside from Credit Suisse, other PAL creditors fully support the airline’s spinoff program that seeks to restructure and make the airline leaner and more competitive in the long term.
Olives said PAL’s domestic and international creditor banks are well informed about the program and recognize this as a global industry trend, especially in the airline industry.
He stressed that PAL will proceed with the spinoff-outsourcing program as originally scheduled. “Of course, the management will maintain the status quo if the Court of Appeals (CA) issues a restraining order. But to-date, we have received no such order preventing us from carrying out the spinoff/outsourcing which has been upheld as valid by the Department of Labor and Employment and the Office of the President,” he said.
Olives added that PAL’s service providers—SkyKitchen Philippines Inc. (for catering), SkyLogistics Philippines Inc. (for ground handling) and SPi Global (for call center services)—are processing the applications of PAL personnel who accepted job offers.
These service providers are committed to absorb all PAL workers to be affected by the spinoff/outsourcing. Interested workers had until yesterday to signify their intention to work for the service firms starting October 1.
PAL workers affected by the spinoff will receive the following: separation pay in the amount of 125 percent of their monthly basic salary for every year of service; P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leave credits; and trip pass benefits. On appeal before the Office of the President, the Labor department’s ruling was affirmed but was slightly modified by increasing the gratuity pay by another P50,000 per worker.
In addition, PAL is offering a one-year extension of medical and hospitalization benefits and guaranteed pay for one year of whatever salary is granted by the service providers to those who choose to be employed by the new contractors.
The spinoff program is a chief component of PAL’s survival plan launched in early 2010 after it lost $312 million for the 2008 and 2009 fiscal years. While it posted modest profits of $72.5 million in 2010, it is again back in the red after recording $10.6 million in losses for the first quarter of the current fiscal year brought about by the effects of unstable fuel prices, the devastating tsunami in Japan and lingering conflicts in the Middle East and North Africa. The flag carrier also continues to suffer from the protracted Category 2 rating of Philippine civil aviation regulators, the European Union blacklist against Philippine carriers, cut-throat competition and a host of other external factors.
Meanwhile, the management of Sky Kitchen and Sky Logistics confirmed that they are not registered with the Department of Labor and Employment (DOLE).
In a text message sent yesterday, it maintained that they have the necessary permits and licenses to operate as a service enterprise. “We are unaware however that a service provider company needs to register with DOLE,” the management said.
“We assure everybody, however, that in the performance of our service SKY will comply with all the legal requirements” it added.
The reply was in answer to charges lodged by PAL union legal counsel Marlon Manuel that service providers Sky Kitchen Philippines Inc., Sky Logistics Philippines Inc. and SPI Global Holdings Inc. are operating illegally.
Representing the Philippine Airlines Employees Association (Palea), Manuel said they received a letter on September 7 confirming that the three said providers are not registered as a contractor or sub-contractor.
Citing a DOLE certification, labor department for the National Capital Region (NCR) director Raymundo Agravante stated that the three service providers are in violation of the Department Order 18 Series of 2002.
The three service providers are now included in the case Palea filed before the Court of Appeals.
(With Sara Fabunan)
Tuesday, September 6, 2011
DOLE forms team to help PAL, workers
Business Mirror
September 6, 2011
WITH the plan of the Philippine Airlines (PAL) to layoff 2,400 workers, the Department of Labor and Employment in the National Capital Region has created a Quick Response Team to help the flag carrier and its displaced employees facilitate payment of their monetary benefits.
Metro Manila Labor Regional Director Raymundo Agravante said the Quick Response Team will also help PAL management to provide a package of assistance to displaced employees.
PAL has recently announced that it will start laying off 2,400 workers from the airline’s airport services, catering and call-center reservations units on October 1.
The 2,400 displaced workers, however, have the option to continue their service once they agreed to be employed by PAL’s third-party service providers.
PAL service providers Sky Logistics, for airport services, Sky Kitchen for catering, and SPI Global as its call center will wait for the employees’ decision but have already started processing early applications from PAL workers who have until September 9, 2011 to express their intention to join their new employer.
So far, only 400 employees have expressed interest to work for PAL’s service providers.
Affected workers will receive a transition benefits package that includes separation pay in the amount of 125 percent of their monthly basic salary for every year of service, P100,000 gratuity pay, 100-percent cash conversion of unused vacation and sick leaves, trip pass (ticket) benefits depending on years of service, and for those who choose to be employed by PAL’s service providers—guaranteed pay for one year of whatever salary is granted by the service providers, including one-year extension of medical and hospitalization benefits.
The PAL Employees Association (Palea) is questioning the spinoff or outsourcing program at the Court of Appeals.
PAL’s spinoff or outsourcing plan was recognized as a legal and valid exercise of management prerogative by acting Labor Secretary Romeo Lagman on June 15, 2010; affirmed by Secretary Rosalinda Baldoz on October 29, 2010; and twice upheld by the Office of the President on March 25, 2011 and August 11, 2011, respectively.
PAL has kicked off a series of town hall meetings where airline officials explained to affected workers the necessity of its outsourcing program in the face of mounting losses and stiff global competition.
September 6, 2011
WITH the plan of the Philippine Airlines (PAL) to layoff 2,400 workers, the Department of Labor and Employment in the National Capital Region has created a Quick Response Team to help the flag carrier and its displaced employees facilitate payment of their monetary benefits.
Metro Manila Labor Regional Director Raymundo Agravante said the Quick Response Team will also help PAL management to provide a package of assistance to displaced employees.
PAL has recently announced that it will start laying off 2,400 workers from the airline’s airport services, catering and call-center reservations units on October 1.
The 2,400 displaced workers, however, have the option to continue their service once they agreed to be employed by PAL’s third-party service providers.
PAL service providers Sky Logistics, for airport services, Sky Kitchen for catering, and SPI Global as its call center will wait for the employees’ decision but have already started processing early applications from PAL workers who have until September 9, 2011 to express their intention to join their new employer.
So far, only 400 employees have expressed interest to work for PAL’s service providers.
Affected workers will receive a transition benefits package that includes separation pay in the amount of 125 percent of their monthly basic salary for every year of service, P100,000 gratuity pay, 100-percent cash conversion of unused vacation and sick leaves, trip pass (ticket) benefits depending on years of service, and for those who choose to be employed by PAL’s service providers—guaranteed pay for one year of whatever salary is granted by the service providers, including one-year extension of medical and hospitalization benefits.
The PAL Employees Association (Palea) is questioning the spinoff or outsourcing program at the Court of Appeals.
PAL’s spinoff or outsourcing plan was recognized as a legal and valid exercise of management prerogative by acting Labor Secretary Romeo Lagman on June 15, 2010; affirmed by Secretary Rosalinda Baldoz on October 29, 2010; and twice upheld by the Office of the President on March 25, 2011 and August 11, 2011, respectively.
PAL has kicked off a series of town hall meetings where airline officials explained to affected workers the necessity of its outsourcing program in the face of mounting losses and stiff global competition.
Thursday, September 1, 2011
Facts about the PAL spin off/outsourcing program
Philippine Daily Inquirer
September 1, 2011
To the employees, clients and partners of Philippine Airlines
As part of its restructuring efforts in response to cut-throat competition in the global airline industry, your flag carrier Philippine Airlines (PAL) will spin off/outsource three non-core units (airport services, inflight catering services and call center reservations operations) effective October 1, 2011. The program will affect close to 2,400 PAL workers who are assured of a generous separation package and job offers from third party service providers.
Rationale
In the last decade, PAL and other international carriers have been adversely affected by global economic upheavals, acts of terrorism, excessive liberalization, pandemics, stiff competition from mega carriers and the emergence of budget carriers. To adjust to these new realities, airlines worldwide adopted new business models to survive. Most, if not all airlines, adjusted through cost cutting and outsourcing non-core functions. To remain competitive and ensure long-term survival, PAL was forced by circumstances to adopt leading airline practices, especially in view of the following:
PAL lost $312 million in two fiscal years (2008 & 2009)
While PAL reported modest profits of $72.5 million in 2010, PAL again posted a loss of $10.6 million for Q1 of its current fiscal year (April-June 2011) due to
weak demand as a result of lingering world economic condition
high fuel prices
effects of the devastating natural calamity in Japan
economic effects of social/political unrest in the Middle East and North Africa
Effects of the US FAA Category 2 downgrading of the country's civil aviation regulators which limits PAL’s operations to and from the United States
European Union blacklist on all Philippine carriers from flying anywhere in Europe
Cut throat competition due to budget carriers and state-sponsored open skies policy
Legal Basis
The spin off/outsourcing has been declared FOUR TIMES as a legal and valid exercise of management prerogative –
twice by the Department of Labor and Employment (DOLE): June 15, 2010 by acting Labor Secretary Romeo Lagman and on October 29, 2010 by Sec. Rosalinda Baldoz
twice affirmed by Office of the President, Malacanang: March 25, 2011 and August 11, 2011
The Spin Off / Outsourcing Process
Notices of Separation have been issued to affected employees. Their last day of work with PAL is on September 30, 2011.
Third party service providers will absorb ALL affected employees who signify intention to join them by September 9, 2011.
Separation pay and other benefits shall be given not later than October 15, 2011 after computing employees' salary and accountabilities as of September 30, 2011.
Full implementation of the spin off / outsourcing program will start on October 1, 2011.
PAL management notified the regional offices of DOLE (Manila/Pasay and Cebu) regarding its spin off/outsourcing program, the effectivity date as well as a list of affected workers.
Service Providers
SkyLogistics Philippines, Inc. will take over airport services (ground handling), while SkyKitchen Philippines, Inc. will handle inflight catering services. Both companies are owned and managed by Manny Osmena, a Cebu-based businessman.
SPi Global, a subsidiary of PLDT, will handle call center reservations operations.
Separation Benefits
PAL workers affected by the spin off/outsourcing will all receive a generous transition package, which includes:
125% of the employee's monthly basic salary for every year of service (which is 25% more than what is prescribed in the PAL-PALEA CBA)
P100,000 gratuity pay
100% commutable-to-cash accrued vacation and sick leaves
trip pass (free tickets) benefits depending on years of service
guaranteed salary for one year, of whatever salary is given by the service provider to workers who accept the employment offer of the service provider; and
medical and hospitalization benefit for one (1) year for those who will join the third party service providers
Note* PAL will spend close to PHP 2.6 billion to cover the transition benefits package of affected employees. Components of the said package are higher than industry rates and more than the prescribed benefits under the Labor Code.
Assurance
PAL would like to assure the public that your airline is exerting all efforts to ensure smooth implementation of the spin off/outsourcing program. Contingency measures are in place to minimize passenger inconvenience. Streamlining the airline's manpower is critical to remain competitive in a harsh industry environment.
PAL is seeking the understanding of its workers, clients and partners as it undertakes this difficult and painful spin off/outsourcing program. No airline, or company for that matter, wants to be remembered for severing ties with its workers. However, PAL must adapt to new realities to remain competitive. After all, its continued operations ensure that separated workers would still have jobs, albeit with a new company. A stronger and leaner PAL also means more secure future for its remaining 5,000 employees, better and more efficient service to its 10 million customers and continuing service as the country’s national flag carrier.
September 1, 2011
To the employees, clients and partners of Philippine Airlines
As part of its restructuring efforts in response to cut-throat competition in the global airline industry, your flag carrier Philippine Airlines (PAL) will spin off/outsource three non-core units (airport services, inflight catering services and call center reservations operations) effective October 1, 2011. The program will affect close to 2,400 PAL workers who are assured of a generous separation package and job offers from third party service providers.
Rationale
In the last decade, PAL and other international carriers have been adversely affected by global economic upheavals, acts of terrorism, excessive liberalization, pandemics, stiff competition from mega carriers and the emergence of budget carriers. To adjust to these new realities, airlines worldwide adopted new business models to survive. Most, if not all airlines, adjusted through cost cutting and outsourcing non-core functions. To remain competitive and ensure long-term survival, PAL was forced by circumstances to adopt leading airline practices, especially in view of the following:
PAL lost $312 million in two fiscal years (2008 & 2009)
While PAL reported modest profits of $72.5 million in 2010, PAL again posted a loss of $10.6 million for Q1 of its current fiscal year (April-June 2011) due to
weak demand as a result of lingering world economic condition
high fuel prices
effects of the devastating natural calamity in Japan
economic effects of social/political unrest in the Middle East and North Africa
Effects of the US FAA Category 2 downgrading of the country's civil aviation regulators which limits PAL’s operations to and from the United States
European Union blacklist on all Philippine carriers from flying anywhere in Europe
Cut throat competition due to budget carriers and state-sponsored open skies policy
Legal Basis
The spin off/outsourcing has been declared FOUR TIMES as a legal and valid exercise of management prerogative –
twice by the Department of Labor and Employment (DOLE): June 15, 2010 by acting Labor Secretary Romeo Lagman and on October 29, 2010 by Sec. Rosalinda Baldoz
twice affirmed by Office of the President, Malacanang: March 25, 2011 and August 11, 2011
The Spin Off / Outsourcing Process
Notices of Separation have been issued to affected employees. Their last day of work with PAL is on September 30, 2011.
Third party service providers will absorb ALL affected employees who signify intention to join them by September 9, 2011.
Separation pay and other benefits shall be given not later than October 15, 2011 after computing employees' salary and accountabilities as of September 30, 2011.
Full implementation of the spin off / outsourcing program will start on October 1, 2011.
PAL management notified the regional offices of DOLE (Manila/Pasay and Cebu) regarding its spin off/outsourcing program, the effectivity date as well as a list of affected workers.
Service Providers
SkyLogistics Philippines, Inc. will take over airport services (ground handling), while SkyKitchen Philippines, Inc. will handle inflight catering services. Both companies are owned and managed by Manny Osmena, a Cebu-based businessman.
SPi Global, a subsidiary of PLDT, will handle call center reservations operations.
Separation Benefits
PAL workers affected by the spin off/outsourcing will all receive a generous transition package, which includes:
125% of the employee's monthly basic salary for every year of service (which is 25% more than what is prescribed in the PAL-PALEA CBA)
P100,000 gratuity pay
100% commutable-to-cash accrued vacation and sick leaves
trip pass (free tickets) benefits depending on years of service
guaranteed salary for one year, of whatever salary is given by the service provider to workers who accept the employment offer of the service provider; and
medical and hospitalization benefit for one (1) year for those who will join the third party service providers
Note* PAL will spend close to PHP 2.6 billion to cover the transition benefits package of affected employees. Components of the said package are higher than industry rates and more than the prescribed benefits under the Labor Code.
Assurance
PAL would like to assure the public that your airline is exerting all efforts to ensure smooth implementation of the spin off/outsourcing program. Contingency measures are in place to minimize passenger inconvenience. Streamlining the airline's manpower is critical to remain competitive in a harsh industry environment.
PAL is seeking the understanding of its workers, clients and partners as it undertakes this difficult and painful spin off/outsourcing program. No airline, or company for that matter, wants to be remembered for severing ties with its workers. However, PAL must adapt to new realities to remain competitive. After all, its continued operations ensure that separated workers would still have jobs, albeit with a new company. A stronger and leaner PAL also means more secure future for its remaining 5,000 employees, better and more efficient service to its 10 million customers and continuing service as the country’s national flag carrier.
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