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Monday, October 31, 2011

PAL readying charges vs protesters

The Philippine Star
October 31, 2011
By Rudy Santos

MANILA, Philippines - Philippine Airlines is preparing charges against its former employees who prevented one of PAL’s catering trucks from leaving the airline’s Inflight Center (IFC) building Saturday.

PAL lawyer Clara de Castro said airline security have identified the truncheon-wielding protesters who blocked Gate 1 of the IFC along MIA Road. The rallyists placed wooden planks with nails and set fire to a box to prevent PAL’s truck from leaving the facility.

“This is not the first time that former PAL workers prevented PAL employees and vehicles from entering and leaving its facility. But Saturday’s well-documented blocking of a PAL catering van shows how brazen they have become,” De Castro said.

She said PAL lawyers are preparing charges for violation of its property rights, particularly the right to free and unhampered access to its own property; the right to use its vehicles and buildings; and the right to allow its workers or service providers to enter and leave the facility without being harassed by protesters.

While the protesters’ claim that they have a right to make camp in front of the IFC building is “questionable,” PAL’s right to free access to and from its own facility is “absolute” and guaranteed by the Constitution, De Castro said.

She also said libel charges are being prepared against protesters claiming that the airline hired so-called “goons” to disperse their camp.

“Baseless allegations of dispersal is a poor attempt by protesting workers to cover up their own blatant violations by threatening harm against PAL personnel who want to bring out PAL property from its inflight center,” she said.

De Castro said PAL security forces merely took a defensive stance. “Not one of them ever touched a protester, a streamer, or any part of the protesters’ camp. They were there to ensure order in case things get out of hand as PAL tries to bring its truck out,” she added.    

Saturday, October 29, 2011

More than half of PAL workers takes checks

The Manila Times
October 29, 2011
By Darwin G. Amojelar

PHILIPPINE Airlines (PAL) on Friday said more than half of its retrenched workers have received their separation pay as of October 26.
In a statement, PAL said close to 60 percent of the more than 2,300 former employees of the three outsourced PAL units, including former union members participating at the protest campsite in front of the flag carrier’s Inflight Center, lined up at seven distribution points where separation checks were released since October 14.

“Our Human Resource Department at Pasay City accommodated 562 check claimants,” Cielo Villaluna, PAL spokesperson said.

Of those who refused to transfer to PAL’s service providers, more than a third already claimed their checks.

The more than 600 staff who chose to work with the three service providers comprised the first batch of check recipients. The separation checks, partly funded by a $50-million loan from a European bank, comprised the economic package of the P2.6 billion severance bundle ordered by the Department of Labor and Employment and Malacañang.

“The daily crowd of former PAL employees claiming their separation checks is the best proof against the former union officers’ assertion that they are rejecting the package,” Villaluna said.

In Mactan, Cebu, 178 out of the total 206 terminated employees already received their separation checks. The checks of more than 300 union members who participated in the September 27 wildcat strike at the NAIA Terminal 2 that grounded PAL flights for nearly 12 hours, are being withheld pending their final clearance.

Villaluna said components of the package are much higher than industry levels and more than the prescribed benefits under the Labor Code and PAL’s own Collective Bargaining Agreement with its ground workers’ union.

Dismissed PAL workers get separation checks

The Philippine Star
October 29, 2011
By Edu Punay (The Philippine Star)

MANILA, Philippines - Philippine Airlines (PAL) said yesterday over half of all former PAL workers have received their separation checks since Oct. 26, belying earlier claims by former union leaders that separated employees were rejecting the separation package.

Close to 60 percent of the more than 2,300 former employees of the three outsourced PAL offices, including former union members in the protest campsite at the PAL Inflight Center, got their checks which were being released since Oct.14 at seven distribution points.

Check distribution continues at PAL’s Recruitment Office, the company said.

“Our Human Resources Department at Pasay City alone accommodated 562 check claimants,” said PAL spokesperson Cielo Villaluna.

Of those who refused to transfer to PAL’s service providers, more than one-third have already claimed their checks.

Meanwhile, the more than 600 staff who chose to work with the three service providers comprise the first batch to receive their checks.

The separation checks, partly funded by a $50-million loan from a European bank, comprise the economic package of the P2.6-billion severance bundle ordered by the labor department and Malacañang to be given to the outsourced employees.

“The daily crowd of former PAL employees claiming their separation checks is the best proof against the former union officers’ assertion that they are rejecting the package,” Villaluna said.



In Mactan, Cebu, 178 out of the 206 terminated employees have already received their separation checks.

Bur the checks of more than 300 union members who participated in the Sept. 27 wildcat strike at the NAIA Terminal 2 that grounded PAL flights for nearly 12 hours are being withheld pending their final clearance.

Villaluna said components of the package are higher than industry levels and more than the prescribed benefits under the Labor Code and PAL’s own Collective Bargaining Agreement with its ground workers’ union.

At the distribution points, emotions were high for those claiming their last paycheck. While some workers regretted their separation from PAL, most thanked the company for giving them the opportunity to send their children to school.

One worker in his early 60s, who worked for more than three decades at the Catering Sub-Department, said there is no bitterness as he leaves PAL.

He recounted that his recent heart bypass was fully covered by the airline’s comprehensive medical benefits.

Since he has chosen to retire early and enjoy his retirement benefits, he is giving his blessings for his son to join the airport service provider, Sky Logistics.

Another employee, a supervisor at the airport Central Baggage Services, felt disappointed at his colleagues’ decision to stage the Sept. 27 wildcat strike.

Despite getting separated from his long-time friends and co-workers, he chose to transfer early to the service provider as a gesture of gratitude for PAL’s medical benefit that also covered his hospital expenses after suffering from a stroke early this year.

A more than 60-year-old ramp equipment operator who has been with PAL for more than 30 years said he also decided to accept the package and retire early, using his retirement check to build a row of apartments.

He plans a simple retirement, living off the apartments’ monthly rent.

Another ramp equipment operator, in his early 50s, claimed that the only choice is to move on and take the package.

Together with some of his colleagues, he plans to go to Canada to apply for similar jobs.

Given the carrier’s rich history, being a PAL employee is all about pride and prestige, notwithstanding distorted claims hurled against the airline.

“Most prominent among the displaced workers is the sense of utang na loob (debt of gratitude)for all that the company had given them through the years,” Villaluna said.

Friday, October 28, 2011

IATA urges gov't to scrap punitive taxes on foreign airlines

Manila Bulletin
October 28, 2011
By Emmie V. Abadilla

MANILA, Philippines — The International Air Transport Association (IATA) urged the government to scrap P2 billion per year punitive taxes and P1-billion overtime charges slapped on the aviation sector prompting foreign carriers to relocate to neighboring countries.

The most recent was KLM’s cancelling its direct services to Manila “due to the unsustainable cost base of operating in Philippines.” This will greatly inconvenience Filipino travelers who will now have no direct flights to Europe as well as Europeans and other visitors coming from the region who want to visit or do business in the country.

As a result of the cut in airline services, the Philippines has become less convenient to visit, both for business or pleasure, IATA stressed. Trade, tourism and in-country employment stand to suffer while aviation growth among neighboring countries grows stronger.

IATA balked at punitive and discriminatory taxes imposed on foreign carriers operating in the country, principally the Common Carrier Tax (CCT) and the Gross Philippine Billings (GPB).

The CCT is a 3% tax on quarterly gross receipts equivalent to the valueadded tax, which would have been zero rated since the services are consumed outside of the Philippines. The GPB is a 2.5% tax on gross Philippine billings equivalent to an income tax.

Both taxes apply regardless of whether the tickets or airway bills are sold in the Philippines, or outside and cost the airline industry P2 billion annually.

IATA strongly opposed both taxes for being discriminatory. Philippine operators are not subject to the taxes, which violate the World Trade Organization (WTO) rules because they serve as barriers to entry.

The taxes also contravene International Civil Aviation Organization (ICAO) taxation policies, which state that international air transport shall be exempt of from taxes.

Thursday, October 27, 2011

PAL adds more domestic flights

Manila Bulletin
October 27, 2011
By Edu Lopez

MANILA, Philippines — In preparation for two long weekends, the Philippine Airlines (PAL) is increasing its flight frequencies to 11 domestic and two regional destinations.

These domestic points are Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao, Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga; while the regional routes are Hong Kong and Singapore.

Thousands of passengers are expected to flock to the country’s airports starting October 28 to enjoy the long weekend leading up to November 1, All Saints' Day and November 2, All Souls' Day.

A similar passenger influx is expected the following week from Nov. 5-7 after Malacañang declared November 7 a holiday in celebration of the Eid’l Adha or the “Festival of Sacrifice” for Muslims.

PAL has urged passengers to book early, in anticipation of increased flight reservations for the two long weekends. The airline assures its passengers that it is prepared to handle the expected influx of passengers for the forthcoming weekend holidays. The expected load factor of flights is a high of 90% for the regional/international sector and a high of 80% for the domestic sector.

PAL is closely coordinating with the Manila International Airport Authority, Mactan-Cebu International Airport and the Civil Aviation Authority of the Philippines (CAAP) and the PNP Aviation Security Group to ensure passenger safety. The flag carrier’s internal security measures are well in place.

Meanwhile, PAL’s airport and flight operations remain normal as passenger and ground handling are being taken cared by third party service providers and licensed technical personnel.

The maintenance of all PAL aircraft is being done by Lufthansa Teknik Philippines. PAL flights are being competently manned by flight deck crews and well-trained cabin crew, who are all considered “safety professionals.”

Starting October 28, the flag carrier will fly an average of 125 flights daily covering international and domestic routes which which represent close to 90% of PAL’s 140 average flights per day prior to September 27.

From a low of 40% capacity during PAL’s transition to third party service providers from September 27-October 3, the flag carrier’s week-on-week capacity has increased and is well on its way to full recovery in terms of number of flights by December.

PAL President Jaime Bautista maintained that safety and service remain the cornerstones of PAL operation. He thanked the flying public for their understanding and patience as PAL’s service providers complete its manpower requirements.

Wednesday, October 26, 2011

PAL cases are not labor disputes?

After the approval by the Office of the President of the spin-off of three non-core businesses by Philippine Airlines and the Court of Appeals’ upholding of PAL’s action, the controversy between the management and the union is no longer a labor dispute.
PAL started implementing the spin-off and separation of about 2,600 employees on October 1. The last day of the workers in PAL was on Sept. 30. After that day, the services of union members were deemed terminated.
Therefore, lawyers of PAL said, the strike called by about 300 members of PAL Employees Association (PALEA) is illegal. The union members lost the personality to strike by virtue of their separation from the service, whether or not they accepted the separation benefits totaling P2.7 billion.
As early as Aug. 22, Gerardo F. Rivera, president of PALEA, wrote management to say "we reiterate our position that despite the decision of the Secretary of Labor and the Office of the President (approving the spin-off and separation), PAL cannot prematurely implement its planned mass termination … PALEA will exhaust all remedies available to it, including seeking a judicial resolution of the case."
The union elevated the dispute to the Court of Appeals but did not file a petition for a temporary restraining order.
The letter resulted from "town hall" meetings PAL called regularly to inform the workers of the mechanics of the separation, particularly the computation of separation benefits which, incidentally, were bigger than what the law and the collective bargaining agreement stipulate.
The payment of benefits started on October 1. The national flag carrier continues to pay those who accepted their separation. As of early this week, an estimated 1,000 members of PALEA have been paid.
Lawyers of the airline now say that the strike called by around 300 union members after September 30 is illegal because the union members were no longer employees of PAL.
They were supposed to be absorbed by the three non-core companies. Whether or not they will accept new jobs in the other companies which PAL has contracted is the workers’ decision, the lawyers said.
That is the reason the lawyers filed a petition for a temporary restraining order seeking to prevent the supposedly separated members of PALEA from harassing the operation of the airline.
The strikers took over the in-flight center. The takeover forced the company to transfer the center to a warehouse.
Edwin B. Ramizo, executive judge of the regional trial courts in Pasay, granted a 72-hour TRO on October 18.
The TRO was valid only for three days because, the lawyers said, the executive judge had the duty to raffle the petition among other judges.
The case landed in the sala of Maria Rosario Ragasa of RTC Branch 108 in Pasay City.
The judge lifted the TRO and went further to issue an order to PAL and the union to maintain the status quo.
The sheriff who was in the premises of PAL where the strike was being held was called on the phone and informed about the status quo order.
PAL lawyers said the sheriff should not have obliged the call of the sala of Judge Ragasa pending receipt of the order.
The status quo is that the 300 union members who are deemed separated from the service are on strike and went as far as taking over the in-flight center.
PAL lawyers petitioned for the inhibition of Judge Ragasa from the case. She refused.
The case of the Flight Attendants and Stewards Association of the Philippines is another matter.
A division of the Supreme Court decided with finality that the 2,400 members of the union must be reinstated.
Chief Justice Renato C. Corona, however, ordered the recall of the ruling and decided that the en banc should make the final decision instead.
The members of the FASAP marched to the street in front of the Supreme Court questioning the recall of the ruling of the division. The en banc is scheduled to deliberate on the case on November 15.
Lawyers of PAL maintain that the members of the two unions – PALEA and FASAP – are both defying the law.
PALEA filed an appeal with the Court of Appeals. PAL maintains that its members were separated on September 30 as there is no order so far stopping management from implementing the spin-off approved twice approved by President Aquino.
FASAP, on the other hand, could not wait for the final ruling of the en banc. Marching to the Supreme Court is questioning the integrity of the Highest Tribunal, PAL lawyers claim.

PAL increases its flight frequencies

Manila Bulletin
October 26, 2011
By Raymund F. Antonio

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) has assured that its operations will be back to normal as the country prepares for the All Saints’ Day.

In a sign of recovery, PAL said it is increasing its flight frequencies to 11 domestic and two regional destinations, as part of its service for the long weekend ahead.

The domestic points are Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao, Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga, while the regional routes are Hong Kong and Singapore.

The increased flights is in anticipation of the thousands of passengers that are expected to flock to the country’s airports starting October 28 for November 1, All Saints’ Day and November 2, All Souls’ Day.

PAL has been besieged with labor problems that affected its normal operations, cutting down flights as retrenched workers barricaded its premises to protest the cut-down of its non-core operations.

Its operations dipped to 40 percent capacity at the height of the labor problem, as third party service providers sought to fill up the vacuum in the operations.

PAL said that beginning Oct. 28, it will fly an average of 125 flights daily covering international and domestic routes, both inbound and outbound, representing close to 90 percent of its 140 average flights before the strike and protests began last Sept. 27.

“From a low of 40 percent capacity during PAL’s transition to third party service providers from September 27-October 3, the flag carrier’s week-on-week capacity increases indicate that it is well on its way to full recovery in terms of number of flights by December,” PAL said.

It said it is closely coordinating with the Manila International Airport Authority, Mactan-Cebu International Airport and the Civil Aviation Authority of the Philippines (CAAP) and the PNP Aviation Security Group to ensure passenger safety.

PAL said it is also preparing for a similar passenger influx between, Nov. 5 to 7 after Malacañang declared November 7 a holiday in celebration of the Eid’l Adha or the “Festival of Sacrifice” for Muslims.

Tuesday, October 25, 2011

PAL gears up for two long weekends

Sunstar.com.ph
Tuesday, October 25, 2011



PHILIPPINE Airlines (PAL) is increasing flight frequences to 11 domestic and two regional destinations in preparation for two long weekends.
These domestic points are Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao, Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga; while the regional routes are Hong Kong and Singapore.
Thousands of passengers are expected to flock to the country's airports starting October 28 (Friday) to enjoy the long weekend leading up to November 1 (All Saints' Day) and November 2 (All Souls' Day).
A similar passenger influx is expected the following week, November 5-7, after Malacañang declared November 7 a holiday in celebration of the Eid’l Adha or the "Festival of Sacrifice" for Muslims.
Travelers are advised to check out PAL's website, Facebook and Twitter accounts, or its reservation hotline at 855-8888 for more information on the flag carrier’s flight schedule. (Sunnex)

PAL hopes to recover losses from holiday travel demand

Sunstar.com.ph
Tuesday, October 25, 2011
PHILIPPINE Airlines (PAL) hopes that demand for air travel during the holidays will help offset losses caused by a work stoppage nearly one month ago.
“Hopefully we can make a turnaround by that time. However, in terms of projected revenues, it’s too early to say because we don’t have figures/estimate of forward bookings,” PAL vice president for corporate communications Joey de Guzman told Sun.Star.
PAL had to forego millions of dollars in income last September 27 after workers belonging to the ground crew union PAL Employees Association (Palea) refused to perform check-in, ramp and catering functions to express opposition to the airlines' outsourcing plan.
Prior to the incident, the airline also suspended some flights as part of the transition of responsibilities to the three service providers, Sky Logistics, Sky Kitchen, and Manny Pangilinan-led SPi Global.
But flight frequencies have continued to improve since then.
From a low of 40 percent capacity during PAL’s transition to third party service providers from September 27-October 3, the national carrier announced that its week-on-week capacity increases suggest that flight frequencies will reach normal levels by December.
“We are targeting 150-162 flights per day for the Christmas rush and that will start on December 16. But our peak season starts in the third week of November,” De Guzman said.
Palea-Mindanao board member Eugene Cosare finds the assumptions as baseless, saying the ongoing labor dispute will continue to hamper operations.
“It (PAL) has a chaotic scenario and the company’s transition period from trained employees to substandard contractual service providers won’t help to take off the company’s plan smoothly,” he told Sun.Star.
Starting October 28, PAL will fly an average of 125 flights daily covering international and domestic routes (inbound/outbound).
This number represents close to 90 percent of PAL’s 140 average flights per day prior to the work stoppage, which stemmed from Malacañang’s approval of the airline’s plan to lay-off 2,300 jobs to cut costs.
PAL president Jaime Bautista maintained that safety and service remain the cornerstones of PAL operations even as the outsourcing companies try to complete manpower requirements. (Virgil Lopez/Sunnex)

PAL increases domestic, international flights

The Philippine Star
October 25, 2011
By Rudy Santos

MANILA, Philippines - Flag carrier Philippine Airlines (PAL) is increasing the number of flights to 11 domestic destinations as well as to Hong Kong and Singapore in anticipation of an influx of travelers during the two long weekends ahead. More flights will be bound for Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao, Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga.

PAL expects thousands of travelers starting Oct. 28 to enjoy the long weekends on Oct. 29 to Nov. 1 and Nov. 5 to 7.

Malacañang has declared Oct. 31 a special non-working holiday to enable travel for All Saints’ Day On Nov. 1, during which Filipinos visit the burial places of their loved ones.

Nov. 7 was also declared a regular holiday in celebration of the Islamic holiday Eid’l Adha or the Festival of Sacrifice.

For more information, travelers are advised to refer to PAL’s website www.philippineairlines.com; log on to PAL’s Facebook and Twitter accounts; or call the PAL Reservations Hotline at 855-8888.

The flag carrier covers 20 domestic and 26 international routes.

PAL also advises the public to book their flights early in anticipation of increased flight reservations for the two long weekends.

PAL assures passengers that it is prepared to handle the increased travel demand for the forthcoming holidays.      

Monday, October 24, 2011

PAL gears up for two ‘long weekends’

In preparation for two long weekends (October 29 to November 1 and November 5-7), Philippine Airlines (PAL) is increasing flight frequencies to 11 domestic and two (2) regional destinations.

These domestic points are Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao, Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga; while the regional routes are Hong Kong and Singapore.

Thousands of passengers are expected to flock to the country’s airports starting October 28 (Friday) to enjoy the long weekend leading up to November 1, All Saints Day and November 2, All Souls Day. A similar passenger influx is expected the following week (Nov. 5-7) after Malacanang declared November 7 a holiday in celebration of the Eid’l Adha or the “Festival of Sacrifice” for Muslims.

Travelers are advised to check out PAL’s website at www.philippineairlines.com; log on to PAL’s Facebook and Twitter accounts; or call the PAL Reservations Hotline at 855-8888 for more information on the flag carrier’s flight schedule covering 20 domestic and 26 international routes.

The public is also advised to book early, in anticipation of increased flight reservations for the two long weekends. PAL assures its passengers that the airline is prepared to handle the expected influx of passengers for the forthcoming weekend holidays. The expected load factor of flights is a high of 90% for the regional/international sector and a high of 80% for the domestic sector.

PAL is closely coordinating with the Manila International Airport Authority, Mactan-Cebu International Airport and the Civil Aviation Authority of the Philippines (CAAP) and the PNP Aviation Security Group to ensure passenger safety. The flag carrier’s internal security measures are well in place, 24/7.

Meanwhile, PAL’s airport and flight operations remain normal as passenger and ground handling are being taken care of by third party service providers and licensed technical personnel, respectively. The maintenance of all PAL aircraft is being done by Lufthansa Teknik Philippines. PAL flights are being competently manned by flight deck crews and well-trained cabin crew, who are all considered “safety professionals”.

Starting October 28, the flag carrier will fly an average of 125 flights daily covering international and domestic routes (inbound/outbound). This number represents close to 90% of PAL’S 140 average flights per day prior to September 27.

From a low of 40% capacity during PAL’s transition to third party service providers from September 27-October 3, the flag carrier’s week-on-week capacity increases indicate that it is well on its way to full recovery in terms of number of flights by December.

PAL President Jaime Bautista maintained that safety and service remain the cornerstones of PAL operation. He thanked the flying public for their understanding and patience as PAL’s service providers complete its manpower requirements.

http://www.businessweekmindanao.com/2011/10/24/pal-gears-up-for-two-%E2%80%98long-weekends%E2%80%99/

PAL gears up for two ‘long weekends’

October 24, 2011

In preparation for two long weekends (October 29 to November 1 and  November 5-7), Philippine Airlines (PAL) is increasing flight frequencies to 11 domestic and two (2) regional destinations.

These domestic points are Bacolod, Cagayan de Oro, Cebu, Cotabato, Davao,  Dumaguete, Iloilo, Kalibo, Ozamiz, Tagbilaran and Zamboanga; while the  regional routes are Hong Kong and Singapore.

Thousands of passengers are expected to flock to the country’s airports starting October 28 (Friday) to enjoy the long weekend leading up to  November 1, All Saints Day and November 2, All Souls Day. A similar  passenger influx is expected the following week (Nov. 5-7) after Malacanang declared November 7 a holiday in celebration of the Eid’l Adha  or the “Festival of Sacrifice” for Muslims.

Travelers are advised to check out PAL’s website at  www.philippineairlines.com; log on to PAL’s Facebook and Twitter  accounts; or call the PAL Reservations Hotline at 855-8888 for more information on the flag carrier’s flight schedule covering 20 domestic and 26 international routes.

The public is also advised to book early, in anticipation of increased flight reservations for the two long weekends. PAL assures its passengers that the airline is prepared to handle the expected influx of passengers for the forthcoming weekend holidays. The expected load factor of flights is a high of 90% for the regional/international sector and a high of 80% for the domestic sector.

PAL is closely coordinating with the Manila International Airport Authority, Mactan-Cebu International Airport and the Civil Aviation  Authority of the Philippines (CAAP) and the PNP Aviation Security Group  to ensure passenger safety. The flag carrier’s internal security measures are well in place, 24/7.

Meanwhile, PAL’s airport and flight operations remain normal as passenger and ground handling are being taken care of by third party service  providers and licensed technical personnel, respectively. The maintenance of all PAL aircraft is being done by Lufthansa Teknik Philippines. PAL flights are being competently manned by flight deck crews and well- trained cabin crew, who are all considered “safety professionals”.

Starting October 28, the flag carrier will fly an average of 125 flights  daily covering international and domestic routes (inbound/outbound). This number represents close to 90% of PAL’S 140 average flights per day prior  to September 27.

From a low of 40% capacity during PAL’s transition to third party service providers from September 27-October 3, the flag carrier’s week-on-week  capacity increases indicate that it is well on its way to full recovery in terms of number of flights by December.

PAL President Jaime Bautista maintained that safety and service remain  the cornerstones of PAL operation. He thanked the flying public for their understanding and patience as PAL’s service providers complete its manpower requirements.

Sunday, October 23, 2011

KMU: PALEA strike a tactical error

The Philippine Star
October 23, 2011
By Perseus Echeminada

MANILA, Philippines - The wildcat strike staged by the Philippine Airlines Employees Association (PALEA) last month was a “tactical error” as far as the militant group Kilusang Mayo Uno (KMU) is concerned.

Elmer Labog, KMU chairman told The STAR that labor strikes should not be held in times of calamities.

“Even the PALEA members who are on duty were not aware that they were already on strike,” he said.

He added that the strike has caused confusion instead of generating public support.

“A labor strike is like waging a war. You have to mobilize the whole group to participate in mass action. It must be carried out frontally not discreetly as what happened during  the PALEA strike where workers just stop performing their jobs,” he said.

Labog, however, said that while they criticized PALEA’s wildcat strike, they are against the contractualization of the labor sector.

“As far as we are concerned there are only two types of employment status in the country, permanent and casual employees,” he said.

PAL: Protesters have no right to hamper our business operations

Manila Bulletin
October 23, 2011
By Emmie V. Abadilla

MANILA, Philippines — Protesters encamped at Philippine Airlines (PAL)'s Ninoy Aquino International Airport (NAIA) Terminal 2 Inflight Center are hampering the flag-carrier’s business, blocking the entrances and exits, harassing service providers and setting up barricades and an illegal "checkpoint."

But "while they're contesting their separation from the company, they have no right whatsoever to prevent PAL employees and designated service providers from using the Inflight Center," stressed PAL counsel Clara de Castro.

The protesting former workers of PAL have been separated from the airline as of October 1, 2011. Since September 27, right after the former PAL workers' wildcat strike, they camped in front of the facility and blocked legitimate PAL employees and vehicles from going in and out of the premises.

PAL's Inflight Center is home to PAL's Cabin Services Department and the former PAL kitchen which shall be taken over by its new service provider, SkyKitchen Philippines, Inc.

"Apart from the usual heckling and other acts of harassment, the protesters have also set up barricades and an illegal 'checkpoint',” she explained. “Drivers of PAL, its suppliers, service providers and even garbage collectors are harassed to yield to illegal inspections of their vehicles before they are allowed to enter or exit the gate."

"These acts, taken together, constitute an illegal blockade of a privately-owned enterprise. They are in fact taking the law into their own hands by so doing. PAL is being prevented from performing its day-to-day business for which it will definitely sue for damages," according to the counsel.”

Already, Judge Maria Rosario Ragasa of the Pasay City Regional Trial Court's Branch 108 issued an order the other day (October 20, 2011) stating that the status quo at the time of the Temporary Restraining Order (TRO)’s effectivity be maintained.

The order further stated that protesting workers "promised not to do anything that would aggravate the present situation."

In that case, protesters should follow the judge's orders and respect PAL's right to free and unhampered use of its own facilities.

"After all, there's no question that PAL is the owner of the facility and the building is essential to its operations," De Castro remarked.

Both local and foreign businessmen are closely watching developments in the PAL case.

“This is more than just a turf war between PAL and its terminated employees. When a mob is allowed to prevent the country's flag carrier from conducting its business, this has wider implications for the economy and the country's attractiveness as an investment destination," she concluded.

Saturday, October 22, 2011

Ex-Workers Hamper PAL

Manila Standard Today
October 22, 2011

Philippine Airlines said protesters encamped at the parking lot in front of its inflight center near Naia Terminal 2 have no right to hamper the airlines  business by blocking entrances and exits of the facility.

PAL lawyer Clara de Castro said protesting former workers of PAL had been separated from the airline as of October 1.

"While they're contesting their separation from the company, they have no right whatsoever to prevent PAL employees and designated service providers from using the inflight center," she said.

De Castro said PAL's inflight center was home to PAL's cabin services department and the former PAL kitchen, which would be taken over by a new service provider, SkyKitchen Philippines Inc.

De Castro said the group of protesters had set up camp in front of the facility and taken upon themselves to block legitimate PAL employees and vehicles from going in and out of the premises since september 27, or right after the former PAL workers' wildcat strike.

 "Apart from the usual heckling and other acts of harassment, the protesters have also set up barricades and an illegal checkpoint," De Castro said.

Friday, October 21, 2011

Protesters have no right to hamper business - PAL

The Philippine Star
October 21, 2011

MANILA, Philippines - Philippine Airlines (PAL) asserted yesterday that protesters encamped at the parking lot infront of its Inflight Center near NAIA Terminal 2 have no right to hamper the airline’s business by blocking entrances and exits of the said facility.

PAL counsel Clara de Castro said protesting former workers of PAL have been separated from the airline as of Oct. 1, 2011. “While they’re contesting their separation from the company, they have no right whatsoever to prevent PAL employees and designated service providers from using the Inflight Center,” she stressed.

De Castro said PAL’s Inflight Center is home to PAL’s cabin services Department and the former PAL kitchen which shall be taken over by its new service provider, SkyKitchen Philippines, Inc.

But since Sept. 27, right after the former PAL workers’ wildcat strike, De Castro said the group of protesters have set up camp infront of the said facility and have taken upon themselves to block legitimate PAL employees and vehicles from going in and out of the premises.

“Apart from the usual heckling and other acts of harassment, the protesters have also set up barricades and an illegal ‘checkpoint’. Drivers of PAL, its suppliers, service providers and even garbage collectors are harassed to yield to illegal inspections of their vehicles before they are allowed to enter or exit the gate,” De Castro said.

“These acts, taken together, constitute an illegal blockade of a privately-owned enterprise. They are in fact taking the law into their own hands by so doing. PAL is being prevented from performing its day-to-day business for which it will definitely sue for damages,” PAL’s counsel added.

Yesterday, Judge Maria Rosario Ragasa of the Pasay City Regional Trial Court’s Branch 108 issued an order stating that the status quo at the time of the effectivity of the TRO be maintained. The order further stated that protesting workers “promised not to do anything that would aggravate the present situation.”

De Castro said that if protesters are true to their word and follow the judge’s orders, they should respect PAL’s right to free and unhampered use of its own facilities. “After all, there’s no question that PAL is the owner of the facility and the building is essential to its operations,” she stressed.

On a bigger front, De Castro said both local and foreign businessmen are closely watching developments in the PAL case. “When a mob is allowed to prevent the country’s flag carrier from freely conducting its business, how much more other smaller companies? More than just a supposed turf war between PAL and its terminated employees, this case has far wider implications for the economy and the country’s attractiveness as an investment destination,” she stressed.

PAL says protesters have no right to hamper operations

Business Mirror
October 21-22, 2011
By Lenie Lectura

FLAG carrier Philippines Airlines (PAL) yesterday said protesters encamped at the parking lot in front of its Inflight Center near Naia Terminal 2 have no right to hamper the airline’s business by blocking entrances and exits of the said facility.

In a statement, PAL counsel Clara de Castro said protesting former workers have been separated from the airline as of October 1. “While they’re contesting their separation from the company, they have no right whatsoever to prevent PAL employees and designated service providers from using the Inflight Center,” she said.

De Castro explained that PAL’s Inflight Center is home to PAL’s cabin services department and the former PAL kitchen which shall be taken over by its new service provider, SkyKitchen Philippines Inc.

Since September 27, right after the former PAL workers’ wildcat strike, De Castro said the group of protesters have set up camp in front of the said facility and have reportedly taken upon themselves to block legitimate PAL employees and vehicles from going in and out of the premises.

“Apart from the usual heckling and other acts of harassment, the protesters have also set up barricades and an illegal “checkpoint.” Drivers of PAL, its suppliers, service providers and even garbage collectors are harassed to yield to illegal inspections of their vehicles before they are allowed to enter or exit the gate,” De Castro said.

“These acts, taken together, constitute an illegal blockade of a privately-owned enterprise. They are in fact taking the law into their own hands by so doing. PAL is being prevented from performing its day-to-day business for which it will definitely sue for damages,” the PAL counsel added.

De Castro said that if protesters are true to their word and follow the judge’s orders, they should respect PAL’s right to free and unhampered use of its own facilities. “After all, there’s no question that PAL is the owner of the facility and the building is essential to its operations,” she stressed.

Labor chief urges PAL, union to exercise sobriety

Philippine Daily Inquirer
October 21, 2011
By Paolo Montecillo, Philip C. Tubeza

Labor Secretary Rosalinda Baldoz on Thursday called for sobriety and mutual respect from the contending parties following reports of a clash outside the Philippine Airlines’ Inflight Center in Pasay City on Wednesday where protesting PAL union members had set up camp.

“A proper observance of basic human rights, the rule of law and peace and order is necessary to ease the tension,” Baldoz said.

She said the Pasay City regional court, which issued a status quo order on Wednesday, should expeditiously address the issue raised by the PAL Employees Union (Palea) “with respect to the jurisdiction of regular courts to issue injunctions in labor disputes.”

Palea on Thursday accused PAL of attempting to bust its picket but that union members were able to repulse the attempt to disperse the strikers on Wednesday afternoon.

‘Lawsuit protest’

“We accuse the management of Philippine Airlines of using a sheriff and scores of hired goons to bust Palea’s peaceful and lawful protest,” said Palea president Gerry Rivera in a statement.

According to Rivera, Pasay City sheriff Virgilio Villar arrived at the Palea camp at about 3 p.m. on Wednesday accompanied by some 100 men in white T-shirts or undershirts and blue pants. Villar said he was there to implement a 72-hour temporary restraining order from Pasay City RTC Judge Edwin Ramizo, stopping the Palea from holding the demonstration in front of the IFC.

However, the union claimed the Ramizo TRO was no longer in effect as the case had been raffled off to another judge, Rosario Ragasa, who issued a status quo order at a hearing on Wednesday.

Illegal occupation

Palea has urged Ragasa to dismiss the case that PAL had filed against six of its members for illegal occupation of the perimeter of the IFC.

It said civil courts have no jurisdiction over cases involving or arising out of labor disputes, as provided for by the Labor Code. A decision on the case is expected at a hearing scheduled today.

According to Rivera, Villar and the men with him began tearing down streamers in violation of the Ragasa order, but were repulsed by Palea members.

“The sheriff and his goons came back again at 6 p.m. and scuffles broke out but they were finally forced to retreat. All the time, scores of riot police were just a short distance away observing the dispersal attempt,” Rivera said.

He claimed that Villar initially admitted that the unidentified men were with him but later denied knowledge of the group.

“Nonetheless the circumstances reveal that PAL’s goons were acting in concert with Sheriff Villar since every time he attempted to tear down tents and streamers, the goons moved with him,” he said.

Blocking entrances

Meanwhile, PAL said in a statement Thursday that while protests are allowed, the Palea members encamped in front of its IFC facility had no right to hamper the airline’s business by blocking entrances and exits to the facility.

PAL counsel Clara de Castro said the protesting former PAL employees had been separated from the airline as of Oct. 1, 2011.

“While they’re contesting their separation from the company, they have no right whatsoever to prevent PAL employees and designated service providers from using the Inflight Center,” she said.

“After all, there’s no question that PAL is the owner of the facility and the building is essential to its operations,” she said.

She explained that the IFC houses PAL’s Cabin Services Department and the former PAL kitchen which has yet to be taken over by the new service provider, SkyKitchen Phil.

“Apart from the usual heckling and other acts of harassment, the protesters have also set up barricades and an illegal checkpoint. Drivers of PAL, its suppliers, service providers and even garbage collectors are harassed to yield to illegal inspections of their vehicles before they are allowed to enter or exit the gate,” De Castro said.
“These acts, taken together, constitute an illegal blockade of a privately owned enterprise. PAL is being prevented from performing its day-to-day business for which it will definitely sue for damages,” she said.

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Thursday, October 20, 2011

PAL mulls charges vs ex-employees for illegal work stoppage

The Philippine Star
By Jess Diaz
October 20, 2011

MANILA, Philippines - Flag carrier Philippine Airlines (PAL) is studying the filing of charges of economic sabotage against former employees who went on an illegal work stoppage last Sept. 27.

PAL assistant vice president for industrial relations Remigio Siapno has told the House committee on labor and employment that the airline’s lawyers have been ordered to consider filing such charges against more than 300 former union members.

He said the former employees “disrupted trade and commerce and caused grave inconvenience to more than 14,000 PAL passengers on Sept. 27 alone.”

He said the workers paralyzed the flag carrier’s operations at the height of typhoon “Pedring.”

The labor committee yesterday conducted a hearing on the work stoppage and on PAL’s outsourcing of certain services.

Militant congressmen suggested that the committee invite business tycoon Lucio Tan, who controls PAL, to shed light on management’s decision to outsource some services, including catering and call center operations. Siapno said Tan spends more time abroad to attend to various business concerns.            

He said labor issues involving the carrier and its workers are pending before the Court of Appeals and the Supreme Court.

“To openly talk and comment on these issues may be sub judice and therefore prohibited,” he said.

For his part, Labor Undersecretary Hans Leo Cacdac informed the committee that based on the labor department’s earlier decision, PAL’s outsourcing program does not constitute unfair labor practice.

The Office of the President has twice upheld the labor department’s ruling.

PAL officer-in-charge for human resources Sylvia Hermosisima assured congressmen that PAL’s operations remain safe since the outsourcing was implemented Oct. 1.

She said regular jobs await many affected workers who applied with the airline’s service providers.

She said Tan does not own, in whole or in part, any of the service provider-companies. The labor committee asked PAL representatives to submit all documents pertaining to the service providers. – With Rudy Santos

All Saints Day Holiday Sale

October 20, 2011

Go against the flow during the busy days and get one-way fare for as low as PHP688. Click the link below for details.

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Wednesday, October 19, 2011

PAL ordered to answer FASAP's appeal

The Philippine Star
By Edu Punay
October 19, 2011

MANILA, Philippines - The Supreme Court (SC) yesterday ordered flag carrier Philippine Airlines (PAL) to answer the petition of 1,400 flight attendants to reinstate the Sept. 7 ruling of the court declaring their retrenchment in 1998 as illegal.

In a resolution, the SC gave the airline 10 days to submit its comment to the petition of the Flight Attendants and Stewards Association of the Philippines (FASAP) to nullify the court’s Oct. 4 ruling that recalled the Sept. 7 decision.

Early yesterday, some 200 FASAP members gathered outside the SC compound hoping that the tribunal would rule on their motion filed last Monday.

In the motion, the group said the Sept. 7 ruling that allowed them to collect P3-billion worth of back wages from PAL should not have been recalled.

Through its legal counsel, retired justice Santiago Kapunan, the group said that the recall order, which was based merely on the letter sent by PAL lawyer Estelito Mendoza, was unconstitutional because it violated due process.

FASAP said it was deprived of the right to present its side because it was not provided copies of the letters sent by Mendoza questioning the composition of the division that handed down the Sept. 7 resolution.

The recall order was signed by Justices Arturo Brion and Jose Perez, regular members of the second division; and Justices Diosdado Peralta, Lucas Bersamin and Jose Mendoza, who sat as substitute members.

Senior Associate Justice Antonio Carpio, chair of the second division, inhibited during voting but later approved the release of the resolution.

SC spokesman Midas Marquez earlier said the Sept. 7 ruling was recalled due to “misapplication of rules” after it was found that the case should have been handled by a special division, not by a regular division.

The court recalled the order after receiving a letter from Mendoza who pointed out the procedural flaw.

Marquez said the case was first assigned to the 3rd division of the SC with retired Justice Consuelo Ynares-Santiago as member-in-charge. When Ynares retired in 2009, the case was transferred to a special division composed of her replacement and original members.

Membership in divisions of the high court has since changed because of the reshuffle over the retirement of justices.

To avoid confusion, the case was transferred to the full court for another deliberation of the second motion of reconsideration filed by PAL.

Associate Justice Ma. Lourdes Sereno, President Aquino’s first appointee to the court, was assigned as new member-in-charge of the case.  

Strikers barred from in-flight center

Manila Stantard Hotel
by Ferdinand Fabella
October 19, 2011

The Pasay City Regional Trial Court has issued a temporary restraining order prohibiting striking employees of the Philippine Airlines from holding demonstrations outside the In-Flight Center along MIA Road.

Executive Judge Edwin Ramizo signed the 72-hour TRO Monday afternoon based on the petition of PAL management.

In his order, Ramizo said members of PAL Employees Association were preventing and depriving the flag carrier of its right to operate the IFC facilities.

The Center has been the site of protest actions by union members who were denouncing the airline’s contractualization program of PAL that has led to the dismissal of some 2,000 of their group.

PALEA president and Partido ng Manggagawa vice chairman Gerry Rivera said the court was deceived by PAL into granting a TRO against them.

“PAL misled the court into issuing a TRO by concealing that the protest camp at the IFC arose out of an ongoing labor dispute. Although Judge Ramizo should have also exercised prudence since the labor row is a matter of public knowledge. Similar to the Supreme Court recall of the flights attendants’ case, PAL is using the justice system to cause injustice,” he said.

Rivera said the protesters would continue the IFC camp out, alluding to mass action in the United States.

“Similar to Occupy Wall Street which has fought eviction by the New York City government and police, we will not surrender our occupation of the airport area despite continuing threats of demolition.”

Rivera also questioned the Pasay court’s authority in issuing an injunction, saying regular courts had no jurisdiction in cases originating from labor disputes, as stated in the Labor Code.

Last Friday, PAL management started releasing P2.6 billion in separation benefits to displaced workers uder the outsourcing program, excluding those who participated in a wildcat strike that paralyzed flight operations on Sept. 27.

Philippine Airlines Flight Advisory

October 19, 2011

We're mounting more flights from October 28 in time for the next long weekend. Please click the link below for more details.

http://www.philippineairlines.com/flights/flight_advisory/flight_advisory.jsp

More PAL Flights Up

PAL said tuesday it will augment operations starting oct, 28.

"The manpower requirements are being met by the third party service providers so there is an increased capacity to service and mount flights," PAL spokeman Cielo Villaluna said in phone interview.

Villaluna said starting on oct 30, PAL will operate around 125 regular flights weekly, including 75 international trips.

Manila Standard Today
October 19, 2011

PAL said it would operate 32 overseas flights a day on oct 28 and 29. The flights are those that were cancelled due to lack of passengers and

"That's almost our regular operations before [the sep 27 strike]," Villaluna said.

She said PAL was currently operating 95 to 105 flights daily comporising of 50 to 55 overseas and 45 to 50 are local trips.

All international flights are operating out of Ninoy Aquino International Airport terminal 2, along with local flights to and from Butuan, Cebu, Cotabato, Davao, Dipolog, General Santos, Kalibo, Legazpi, Laoag and Roxas. Jeremiah F. de Guzman

Tuesday, October 18, 2011

PAL mulls charges vs. strikers

Manila Bulletin
October 18, 2011, 6:25pm

MANILA, Philippines — Philippine Airlines (PAL) is studying the possibility of filing economic sabotage charges against former employees who staged an illegal work stoppage last September 27.

Atty. Remigio Siapno, PAL AVP-Industrial Relations, told the House Labor and Employment committee that PAL may file charges of economic sabotage against more than 300 former union members who paralyzed PAL operations at the height of typhoon "Pedring." Apart from disrupting trade and commerce, the wildcat strike caused grave inconvenience to more than 14,000 PAL passengers at NAIA Terminal 2 on that day.

On plans to summon PAL chairman Lucio Tan to Congress, the airline management said it would inform the taipan of such invitation. In a statement, PAL said Tan spends more time abroad than in the Philippines to attend to various business matters.

PAL stressed that the flag carrier’s labor issues are pending before the Court of Appeals and the Supreme Court. “To openly talk and comment on these issues may be sub judice,” PAL stressed.

Department of Labor and Employment Undersecretary Hans Leo Cacdac informed the Committee that based on DoLE's earlier decision, the labor department found that PAL's outsourcing program does not constitute unfair labor practice. The same ruling was upheld by the Office of the President twice.

PAL OIC for Human Resources Sylvia Hermosisima assured lawmakers that PAL's operations remain safe since the outsourcing was implemented October 1. She said that regular jobs await affected workers at the service providers.

She added that none of the designated service providers are owned, in whole or in part, by Tan.

PAL representatives to the hearing were told by the committee to submit all documents pertaining to the service providers.

Chaff from the Grain

Manila Bulletin
By Former Press Secretary HECTOR R.R. VILLANUEVA
October 18, 2011, 2:54am

AIRLINE DISPUTE

Meanwhile, without taking sides on the convoluted issues between PAL and FASAP/PALEA, the airline labor unions, the history of airline disputes and strikes had always ended with the airline surviving the crisis while families, marriages, and children suffer the most from broken homes, financial dislocation, marital separation, job opportunity loss, ostracism, interrupted schooling, loss of accustomed opulent lifestyle, generous privileges and benefits.

Further, except for a few lucky ones, major airlines tend to be wary and suspicious in hiring strikers and union members.

Think of your family first.

Long queues for PAL separation checks

Business Mirror
October 18, 2011

ALMOST 500 former Philippine Airlines (PAL) employees received their separation pay over the weekend as the carrier began distributing P2.6-billion in cash benefits to those affected by PAL’s outsourcing program.

The first batch to receive their separation checks were those who already transferred to PAL’s three service providers -- SkyLogistics Philippines, SkyKitchen Philippines and SPi Global.

They lined up at five check distribution points -- PAL HR office at the PNB head office at Pasay; PAL Benefits office at Nichols; PAL Cargo; NAIA Terminal 2 and PAL Cebu.

The following day, Oct. 15, PAL started distributing another 1,500 checks for the second batch -- those who refuse to accept jobs at the service providers but did not participate in the September 27 work stoppage at the NAIA Terminal 2. The whole distribution process could take about a week.

The checks of those who staged the wildcat strike are on hold pending the employees’ final clearance.

“There are long queues at the PAL counters in PNB and other areas, but PAL’s Human Resources, Finance and Legal departments are doing their best to process all applicants for the day,” PAL spokesperson Cielo Villaluna said.

PAL’s HR department will safekeep any unclaimed checks of employees all of whom are officially considered terminated as of October 1, 2011. PAL said hopes of rejoining the airline rather than its service providers are misplaced as the three departments where they used to work have been abolished.

Per PAL HRD records, more than 28% will receive P1 million and above; 37% will get between P750,000 and P1 million; and 22% below P500,000. The biggest check is for P2.4 million, while the smallest is P120,000. The cash component of the benefits is tax-free. The non-cash benefits include free PAL tickets, one-year hospitalization and salary guarantee.

Villaluna said components of the package are much higher than industry levels and more than the prescribed benefits under the Labor Code and PAL’s own Collective Bargaining Agreement with its ground workers’ union.

Philippine Airlines Flight Advisory

October 18, 2011

Flights between Manila and Ozamiz resume on October 29 with service every  Tuesday, Thursday and Saturday. PR163 departs Manila at 10:05am; arrival in Ozamiz is at 11:30am. The return flight, PR164, departs Ozamiz at 12nn and arrives Manila at 1:25pm. Ozamiz flights shall operate at NAIA Terminal 3.

Friday, October 14, 2011

PAL starts paying retrenched workers

Philippine Daily Inquirer
By: Paolo G. Montecillo
October 14, 2011

National flag carrier Philippine Airlines (PAL) has released the P2.6 billion in retirement benefits to be paid to its former workers that were retrenched in a controversial spinoff/outsourcing program last month.

In a statement, PAL said this showed that the continued protests by ground crew labor union PAL Employees’ Association (Palea) would not change the management’s decision to retrench 2,600 employees, which was done to help streamline the airline’s operations.

PAL’s Human Resources Department (HRD) said the first batch to receive the package are employees who did not join the Sept. 27 “wildcat strike” and are now working for PAL’s service providers. To follow are those who declined the job offer but did not participate in the work stoppage—they will receive their checks starting Saturday.

“Per instructions of PAL management, we will give priority to employees who heeded PAL’s appeal for a smooth and orderly implementation of the spin-off/outsourcing program,” company spokesperson Cielo Villaluna said.

Grateful for loyalty

“Management is grateful for their dedication and loyalty and for honoring calls for cooperation during the transition period,” she said.

Of the more than 2,300 recipients of the retirement package, more than 600 transferred to the service providers while nearly 1,700 workers chose not to join PAL’s third party contractors.

Majority of the workers shall receive an average of close to P800,000 in separation pay, which includes 125 percent of their monthly salary for every year of service, P100,000 gratuity pay and 100 percent cash conversion of accrued vacation and sick leaves.

According PAL HRD records, more than 28 percent will receive P1 million and above; 37 percent will get between P750,000 and P1 million; and 22 percent below P500,000.

The highest package reached P2.4 million, while those who served PAL for only one year will receive about P120,000. The cash component of the benefits will be tax-free.

Villaluna said checks for 338 former employees who joined the wildcat strike on September 27 are on hold pending their final clearances.

The work stoppage led to the cancellation of domestic and international flights, ahead of the Oct. 1 implementation of the outsourcing program, which caused massive inconvenience to 14,000 passengers at the height of Typhoon ‘‘Pedring.”

PAL’s operations are still limping due to Palea members’ refusal to join the new service providers. Sky Logistics and Sky Kitchen, the two companies contracted to replace PAL’s airport services and in-flight catering divisions, have been unable to hire enough employees to replace those retrenched.

PAL will spend about P2.6 billion to cover the transition benefits, partly financed through a $50-million loan from the European bank Credit Suisse.

Amid the payout, Palea criticized President Aquino for dismissing union members as disgruntled workers. Contrary to the President’s statements earlier this week, Palea said the interest of PAL workers do not run counter to the welfare of the country’s 10 million migrant workers.

“The President should not pit one issue over another since Palea members and OFWs are workers riding the same boat.  Obviously the one who’s rocking the boat, the terminator Lucio Tan, has once again escaped the eyes of the President,” said Gerry Rivera, the union’s president and one of the 2,600 fired by PAL.

Rivera said aside from the riding public, the Tourism Congress has already taken notice of the harsh impact of this continuing labor dispute at PAL to the country’s tourism industry as well as on business.

Originally posted at 0:46 pm | Thursday, October 13, 2011
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PAL to disburse P2.6-B separation packages to 2,300 affected workers

Business Mirror
October 14-15, 2011
By Lenie Lectura


FORMER workers of Philippine Airlines (PAL) who were affected by the outsourcing program will start receiving today their respective separation package, the flag carrier said.

PAL, in a statement, said it will start releasing today the P2.6 billion earmarked as payment representing the separation package of workers from three non-core units whose functions were outsourced to third-party service providers on October 1.

According to PAL’s human resources department, the first batch to receive the package are employees who did not join the September 27 wildcat strike and are now working for PAL’s service providers.

To follow are those who declined the job offer but did not participate in the work stoppage. They will receive their checks starting?October 15.

“Per instructions of PAL management, we will give priority to employees who heeded PAL’s appeal for a smooth and orderly implementation of the spinoff/outsourcing program,” said PAL spokeswoman Cielo Villaluna.?“Management is grateful for their dedication and loyalty and for honoring calls for cooperation during the transition period,” she added.

Of the more than 2,300 recipients of the retirement package, more than 600 transferred to the service providers while nearly 1,700 workers chose not to join PAL’s third party contractors.

The majority of the workers will receive an average of close to P800,000 in separation pay, which includes 125 percent of their monthly salary for every year of service, P100,000 gratuity pay and 100-percent converted-to-cash accrued vacation and sick leave credits.

PAL said more than 28 percent will receive P1 million and above; 37 percent will get between P750,000 and P1 million; and 22 percent below P500,000. The highest package reached P2.4 million, while those who only served PAL for a minimum of one year will receive about P120,000. The cash component of the benefits is tax-free.A guaranteed salary and hospitalization benefits for one year are also assured to those who transferred to the service providers.

The non-economic component of the package includes free tickets for the employee and qualified dependents depending on the number of years of service.

Villaluna said checks for 338 former employees who joined the PAL Employees Association’s wildcat strike on September 27 are on hold pending their final clearances.

The work stoppage led to the cancellation of domestic and international flights, ahead of the?October 1, implementation of the outsourcing program, which caused massive inconvenience to 14,000 passengers at the height of typhoon ‘Pedring.’

PAL will spend about P2.6 billion to cover the transition benefits, partly financed through a $50-million loan from Credit Suisse.

Villaluna said components of the package are much higher than industry levels and more than the prescribed benefits under the Labor Code and PAL’s own collective bargaining agreement with its ground workers’ union.

PAL crew to get P2.6b in benefits

Manila Standard Today
October 14, 2011
by Jeremiah F. de Guzman

Philippine Airlines said Thursday it will release today P2.6 billion to workers displaced by its outsourcing program.

PAL said in a statement ground workers who did not join the Sept. 27 strike and now working with third-party service providers would get priority in the payment of separation benefits.

The airline said workers who declined to sign up with service providers but did not participate in the work stoppage would receive their checks starting Saturday.

“Per instructions of PAL management, we will give priority to employees who heeded PAL’s appeal for a smooth and orderly implementation of the spin-off/outsourcing program,” said PAL spokesman Cielo Villaluna.

She said checks for 338 former employees who joined the PAL Employees Association’s strike on Sept. 27 were on hold pending final clearances.

The airline said 2,300 would received retirement packages after PAL spun off three non-core units. Only 600 former PAL workers joined Sky Logistics, Sky Kitchen and SPi Global while nearly 1,700 workers did not.

Majority of the workers will receive an average of close to P800,000 in separation pay, including 125 percent of their monthly salary for every year of service, P100,000 gratuity pay and full converted-to-cash accrued vacation and sick leave credits.

PAL said 28 percent of retrenched employees would receive over P1 million; 37 percent will get between P750,000 and P1 million; and 22 percent below P500,000.

The highest package was P2.4 million, while those who served PAL for a minimum of one year would receive about P120,000. The cash component of the benefits will be tax-free.

PAL also assured a guaranteed salary and hospitalization benefits for one year to those who transferred to the service providers.

Thursday, October 13, 2011

P-Noy backs PAL bid to restructure operations

Philippine Daily Inquirer
October 13, 2011
by Norman Borbadora


President Aquino yesterday recognized the need of PAL, which describes as the country's only air carrier capable of reaching millions of distressed Filipino migrants, to restructure its operations to survive.

Mr. Aquino made the remarks amid protests by the PAL employees' Association (PALEA) against the airline's spin-off and outsourcing program which resulted in the layoff of more than 2,000 workers recently. the protests have since caused disruptions in PAL's flights.

"We would like to symphatize with those in palea... but the interest of 10 million outweighs the 2,000 or so that is affected by Palea," President Aquino said when asked what government was doing to make PAL's operations return to normal.


No perfect Solution

"There is no perfect solution to this mess but it is part and parcel of the changing realities of the economic situation in the entire world," he said in a news forum with the Foreign Correspondents'Association of the Philippines.

President Aquino was reffering to the estimated 10 million Filipinos working overseas.

He indicated that with the potential of global developments making their immediate repatriation necessary, PAL should remain capable of helping in the rescue efforts that only the airline can provide.

Malanang recently upheld the Department of Labor and Employment's decision finding it legal for PAL to outsource 2,600 jobs in its three noncore units to service providers.

"We could not allow the national flag carrier and the only other airline capable of reaching those destinations to become non-entities and lose that ability to, if there was a need, to repatriate our countrymen," President Aquino said.

SC decision

President Aquino also hoped that the Supreme Court's recent recall of its earlier decision ordering the reinstatement of PAL stewards due to a technicality.

Presidential spokesperson Edwin Lacierda said Malacanang was interested in finding out the reasons behind the recall of the court's ruling in the Fasap case after PAL's lawyer pointed out technicality.

"The Supreme Court must be sure not to make the same mistake again if ever this time the technicality was overlooked," Lacierda said in yesterday's news briefing in Malacanang.

Lacierda said the Dole, through Labor Secretary Rosalinda Baldoz, initially upheld the case of the stewards against PAL management.

"Dole upheld the position of Fasap. But with this new turnaround, we do not wish to comment on the latest decision by the Supreme Court because it's something that they should explain themselves," Lacierda said.

On Oct. 4, the Supreme Court recalled its earlier ruling ordering the reinstatement of 1,400 PAL flight attendants supposedly because a wrong court division decided the case.

The court en banc decided to recall the case after PAL lawyer Estelito Mendoza called tribunal's attention to the Second Division's ruling.

The Philippine Chamber of Commerce and Industry Inc. (PCCI), however, supported the court's decision to recall the ruling.

In a statement, PCCI president Francis Chua said the high tribunal "displayed extraordinary courage and grit for owning up to its mistake." With reports from Daxim L. Lucas and Marlon Ramos

Aquino: Interest of OFWs outweigh ex-PAL workers

Business Mirror
October 13, 2011
By Mia M. Gonzalez


While the government would like to sympathize with Philippine Airlines (PAL) workers hurt by the company’s outsourcing scheme, President Aquino said on Wednesday its greater concern is the 10 million Filipino workers abroad, especially those in the Middle East, who would be at risk if the national carrier cannot resume normal operations.

“There is no perfect solution to the mess” confronting PAL, he told members of the Foreign Correspondents Association of the Philippines.              

“If you define the national interest, there are 10 million Filipinos overseas. With what has been happening in the Middle East, one would want our airlines capable of going to the Middle East to fetch our citizens,” he said.

He said the government “could not allow” an airline to become “non-entities” such that it could not be called upon to repatriate overseas Filipinos.

“The interests of the 10 million outweigh the thousands, the 2,000 or so, that were affected by PAL,” Mr. Aquino said.

He said PAL’s decision to reformat the corporation to survive is “part and parcel of the changing realities with the economic situation in the entire world.”

The President also said he hopes the Supreme Court ruling reversing its decision to order the reinstatement of 1,400 Philippine Airlines workers in 1998 would not lead to “more disruptions.”

“We will appeal to the Supreme Court perhaps to hasten the processes,” he said.

Meanwhile, the PAL Employees Association (Palea) insisted again on Wednesday that the airline’s outsourcing plan has failed.

“Just tell the truth that the outsourcing plan has failed because of the lack of skilled manpower and not because of an absurd fairy tale of harassment coming from Palea,” Palea President Gerry Rivera said in a statement.

Palea said it mobilized its members and supporters to another mass action on Wednesday near the entrance of Ninoy Aquino International Airport Terminal 2. A simultaneous action was also to be held in Cebu.

The group also said “local civil-society groups” have launched a boycott against the airline on the Internet.

It claimed trade union groups from the United States, Europe, Australia, Japan, Indonesia and Malaysia have “already expressed their solidarity” with Palea and are planning to hold protest actions “most probably at the Philippine consulate offices.”

Palea members have set up a protest camp outside PAL’s In-Flight Services building.

Wednesday, October 12, 2011

PAL labor dispute taking its toll on Mindanao tourism, tuna sales

By Jocelyn R. Uy
Philippine Daily Inquirer
2:08 am | Wednesday, October 12th, 2011

The ongoing labor dispute at the Philippine Airlines (PAL) has taken its toll on Mindanao’s tuna sales and hotel occupancy, according to the Tourism Congress.

Initial losses in booked business have been pegged at about 30 percent while hotel occupancy has slumped 50 to 70 percent, said Jaime Cura, vice president of the private-sector led Tourism Congress.

“This was  due to the canceled hotel bookings for conferences, banquets, and other functions of out-of-town groups and entities that had been previously confirmed,” Cura explained Tuesday.

The region’s tuna industry alone was losing roughly P50 million a day since the PAL Employees Association (Palea) staged a wildcat strike two weeks ago, which resulted in major flight cancellations, he noted.
Citing a report from the local chamber of commerce, Cura said the figure was the corresponding revenue value of a daily shipment stock of about 20 to 26 tons of tuna that failed to reach buyers because of flight disruption.

“This was the gist of reports coming from operators of hotels and resorts, travel agencies and tours, land, sea and air transport, and meetings, incentives, conventions and exhibitions and other tourism enterprises,” Cura said.

Regional consultation

The government-recognized organization of tourism industry stakeholders held a regional consultation meeting on Saturday,  gathering representatives of tourism-related enterprises in South Cotabato, Saranggani and General Santos City.

Cura said the reports from the meeting somehow validated the concerns that the PAL labor dispute would negatively affect the country’s tourism promotion efforts, “which were presently being stepped up vigorously.”
Palea staged a work stoppage on September 27 to protest the airline’s move to lay off 2,600 workers from its call center reservation, catering and ground handling service departments.

Cura said that participants in the Congress decided there was a  need for “preplanned cooperative arrangements” among the various tourism sectors and enterprises in anticipation of eventualities that may have adverse effects on the sector.

“One of the immediate actions that can be implemented to mitigate the negative effects of crisis situations affecting tourism is for the concerned sector to promptly issue a  ‘situationer’ which the Tourism Congress can speedily circulate to the rest of its stakeholders,” he said.

Flight cancellations

In this way, the affected sectors, including the tourism industry, would be able to come up and implement stop-gap measures, he added.

The Manila International Airport Authority (MIAA) said that PAL canceled on Tuesday 72 international and domestic flights because of lack of manpower.

However, PAL said that it canceled only one flight Tuesday—PR477/478 Manila-Butuan-Manila, due to an approaching storm. It said it operated a total of 84 flights Tuesday (42 domestic and 42 international) out of Naia Terminal 2 and 3, using a scaled-down flight schedule effective October 7.

PAL volunteers and service providers have taken over the posts vacated by striking Palea members.
PAL earlier announced that 95 percent of its international flights and 60 percent of its domestics flights were back to normal operations.

PAL assures passengers on safety

Manila Bulletin
By Edu Lopez
October 11, 2011, 3:05pm

MANILA, Philippines — Philippine Airlines has assured the riding public that safety is always the airline’s top priority and none of its strict safety protocols have been compromised after the flag carrier’s outsourcing program took effect on October 1, 2011.

Stressing that safety is the cornerstone of PAL’s operations, the flag carrier brushed aside attempts by its former employees to sow doubt in the minds of the flying public on the safety of PAL operations.

“We assure our passengers that all aircraft utilized in our flights are released only after thorough assessment and safety checks,” said PAL president and COO Jaime Bautista. He stressed that the Civil Aviation Authority of the Philippines (CAAP) has a surveillance inspection team especially assigned to PAL.

All PAL aircraft are maintained by Lufthansa Technik Philippines and other reputable maintenance, repair and overhaul (MRO) companies abroad.

Bautista said all safety regulations are likewise complied with particularly those enforced by CAAP, US Federal Aviation Administration and US Transport Security Administration, as well as regular safety checks under the stringent IATA Operational Safety Audit (IOSA). PAL is the only IOSA-certified Philippine carrier.

“Apart from strict security checks, PAL flights also undergo a final safety check by our highly-trained and experienced pilots. A PAL plane will not take off until pilots are fully satisfied with the aircraft's airworthiness and only after they have determined the safe load of passengers and cargo,” he added.

Bautista said PAL’s current corps of admin volunteers, former union members who joined the service providers and new hires all underwent proper training and certification prior to handling official ground duties.

He dismissed as ‘black propaganda’ allegations by former PAL employees led by Gerry Rivera that ‘overworked’ PAL staff and untrained personnel were compromising airline safety. ‘Former PAL ground workers are so used to working less than their 7.5 hour daily shift for 5 days, such that they consider our volunteers’ 8-hour shifts, 6 days a week as ‘overwork’,’ Bautista said.

“Even claims that an airstep bumped and caused damage to one of PAL’s Airbus A340s is a fabrication concocted by Rivera and his cohorts. All our aircraft undergo regular checks and no such damage has been found by PAL’s Aircraft Engineering Department and Lufthansa Technik, PAL’s maintenance provider,” he stressed.

PAL strike costs tuna traders P50m a day

Manila Standard Today
by Eric Apolonio

The prolonged labor-management dispute at the Philippine Airlines has dealt losses to traders, travel operators and hoteliers in South Cotabato, Saranggani and General Santos City, with the tuna industry foregoing P50 million a day in shipment that did not reach buyers because of cancelled flights.

This was revealed by regional businessmen at the Tourism Congress held during the weekend in General Santos City.

Tourism Congress’ vice-president Jaime Cura said that the hoteliers, resort owners and other association members posted losses in terms of foregone booking, with occupancy rates plunging by 50% -70%.

“This was due to the cancelled hotel bookings for conferences, banquets, and other functions for out-of-town groups and entities that had been previously confirmed,” said Cura.

“The local chamber of commerce revealed that the tuna industry alone suffered losses of around P50 million a day, the corresponding value of a daily shipment stock of about 20-26 tons of tuna that did not reach the buyers because of cancelled flights.”

The reports confirmed the concerns aired by the Tourism Congress about the dire effects of the wildcat strike and other forms of work stoppage staged by the PAL employees association three weeks ago, according to PAL vice-president Bong Cruz. These illegal acts have disrupted flight schedules or forced outright cancellation of many flights, Cruz said.

Cruz, who attended the regional consultation, expressed apology the to stakeholders and explained the causes of the labor dispute. He said the airline management has taken steps to resume regular flights.

Cura said the regional dialogue validated the need for cooperative arrangements among the various tourism sectors and enterprises in anticipation of emergencies and contingencies that may have adverse effects on tourism businesses.

“One of the immediate actions that can be implemented to mitigate the negative effects of crisis situations is for the concerned sector to promptly issue a situationer which the Tourism Congress can speedily circulate to the rest of its stakeholders,” he said. “This way, the situation can be handled by the other affected sectors and enable them to take stop-gap measures.”

Tuna sector lost P50M a day from PAL strike

Business Mirror
Recto Mercene
Reporter

FLIGHT cancellations and disruptions of regular flights by the Philippine Airlines (PAL) as a result of its long-running labor feud with the PAL Employees Association (Palea) resulted in the drop in hotel occupancy rates and a P50-million daily loss in the tuna industry, representatives of tourism-related enterprises in South Cotabato, Sarangani and General Santos City said.

The reports were made at a regional consultation held by the Tourism Congress and its member associations over the weekend in General Santos City.

Jaime Cura, Tourism Congress vice president, said the direct effect is a reported loss in booked business of about 30 percent overall as occupancy rates dropped to around 50 percent to 70 percent.

“This was due to canceled hotel bookings for conferences, banquets and other functions of out-of-town groups and entities that had been previously confirmed,” said Cura.

“The local chamber of commerce also revealed that for the tuna industry alone, reported losses are to the tune of around P50 million a day, the corresponding revenue value of a daily shipment stock of about 20 to 26 tons of tuna that did not reach their designated buyers because of canceled flights,” he said.

The reports came from operators of hotels and resorts, travel agencies and tours, land, sea and air transport, and meetings, incentives, conventions and exhibitions and other tourism enterprises.

The reports confirmed the concern aired by the Tourism Congress about the dire effects of the Palea wildcat strike at the height of Typhoon Pedring on September 27 and other forms of work stoppage that have disrupted flight schedules or forced outright cancellation of many flights.

The Tourism Congress was created under Republic Act 9593, or the Tourism Act of 2009, as the private consultative body to work with the Department of Tourism on policies and programs. It is the private-sector voice of the Philippine tourism industry.

PAL Vice President Bong Cruz, who attended the regional consultation, apologized to affected stakeholders and explained the causes of the labor row and the steps now being taken by the airline to normalize flight operations as soon as possible.

Cura said the regional dialogue validated and affirmed the need for pre-planned cooperative arrangements among the various tourism sectors and enterprises in anticipation of emergencies and contingencies that may have adverse effects on tourism businesses in general.

Cooperation among private-sector tourism enterprises is one of the advocacies of the current Tourism Congress.

“One of the immediate actions that can be implemented to mitigate the negative effects of crisis situations affecting tourism is for the concerned sector to promptly issue a situation report, which the Tourism Congress can speedily circulate to the rest of its stakeholders,” he said. “This way, explanations can be adequately handled by the other affected sectors and enable them to take stop-gap countermeasures.”

The dialogue also highlighted the importance of tourism enterprises in the various sectors in the region to form or join associations that can facilitate meetings and communication for prompt and constructive action among themselves and responsive advocacy for collective concerns and recommendations.

The local enterprises asked what could be done to offset the negative effects on tourism in the region by the travel advisories that are issued intermittently by various foreign governments warning their citizens not to travel to Mindanao. A consensus on the need for more widespread and better-organized use of social media to counter the negative travel advisories emerged from the discussion.