DoLE settles labor row, favors PAL cabin crew

Business World

LABOR SECRETARY Rosalinda D. Baldoz on Thursday resolved a labor dispute between Philippine Airlines (PAL) and its cabin crew, siding in favor of the latter three months after taking over the row.

Ms. Baldoz, who assumed jurisdiction over the dispute in October amid a deadlock in collective bargaining talks to prevent a strike in the nation’s flag carrier, carried most of the demands made by the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).

In a statement, the Department of Labor and Employment (DoLE) said it was "fair and reasonable" to award the following:

compulsory retirement age for all FASAP members at 60 years old;

two pregnancy leaves for a maximum of seven months for each leave, to be credited in computing the length of service for retirement, 13th month pay, Christmas bonus, rice allowance, and trip passes;

prospective application of pregnancy and maternity leave crediting;

monthly rice allowance of P1,800 for the period covering July 16, 2007 to July 15, 2010, estimated at P25 million; and

three-year salary increases totalling over P200 million.

"Maternity leaves for a maximum of four deliveries already being enjoyed shall likewise be credited in computing the length of service for retirement, 13th month pay, Christmas bonus, rice allowance, and trip passes," the DoLE said.

FASAP wanted the retirement age set at 60 and a new collective bargaining agreement, contrary to PAL’s offer of a one-time package of P250 million to cover the absence of an agreement between 2007 and 2010.

PAL offered a P105-million salary increase and an additional rice allocation. The Lucio C. Tan-led airline wanted the retirement age set at 45.

PAL spokeswoman Cielo C. Villaluna said she had yet to read the decision. "When we already have a copy, our legal counsel will study it and prepare the necessary actions to be proposed to the top management," she said.

Andy Ortega, vice-president of FASAP, said: "We will have a meeting tomorrow to study the decision."

DoLE said Ms. Baldoz’s decision will benefit 1,542 FASAP members.