PAL workers protest DoLE order

abs-cbnNEWS.com

Posted at 11/01/2010 3

MANILA, Philippines (UPDATE) - Employees of Philippine Airlines (PAL) staged a protest action on Monday against the recent decision of the Department of Labor and Employment (DoLE) allowing the mass layoff of some 2,600 workers of the airline.

The Philippine Airlines Employees' Association (PALEA), the ground crew union at PAL, gathered at the DoLE's main office in Intramuros, Manila, and said this was just the first in a series of protests they plan to launch.

PALEA will also march from DoLE to Mendiola on Tuesday.

Labor Secretary Rosalinda Baldoz has upheld the previous order of former acting Labor chief Romeo Lagman, giving the green light on PAL's plan to outsource 3 non-core operations and lay off workers.

PAL wants to outsource its call center reservations, in-flight catering and airport services units to be financially viable.

PALEA slammed Baldoz's decision, saying it meant "the death of job security."

But Baldoz, in an interview with ANC Dateline Philippines, said she would stand by her decision.

"Wala akong nakitang reason na hindi i-affirm and earlier decision to outsource [PAL's] non-core activities."

Baldoz said she examined all the arguments of both parties and found that the planned outsourcing was a "just, reasonable, humane and lawful exercise of [PAL's] management prerogative."

She added that she did not renege on her social obligation as labor chief to protect the welfare of workers.

"There will be no immediate joblessness on the part of those affected," she said.

Baldoz ordered PAL to increase the workers' separation pay to 1.25 months per year of service, make an additional P50,000 payment per employee, and extend medical benefits for a year.

She also directed PAL management to give affected employees the opportunity to be absorbed by PAL's new service providers.

Baldoz said the concerned parties are given 10 days from receipt of the DoLE decision to question it before it becomes final and executory.

PAL welcomes decision

In a statement Monday, PAL spokesperson Cielo Villaluna said PAL has yet to compute the financial impact of the modifications to the compensation package that each of its separated employee will receive.

Nonetheless, she said Baldoz's decision was a welcome development.

"Most airlines in the world, and almost all carriers in Asia, are now using third parties to supply and render non-core services. In PAL’s case, it is implementing the spin-off to cut costs and ensure the airline’s continued survival," she noted.

Villaluna stressed that the planned spin-off was in good faith and justified by efforts to ensure viability of PAL's operations.

She said the PAL union had been aware of the spin-off since 1998, when PAL first wanted to cut costs because of the difficult operating environment then.

She explained that a host of factors, including massive $312-million losses in the last 2 years due to the global recession, volatile fuel prices, the downgrade of the Philippines’ aviation safety rating to Category 2, and cut-throat competition with low cost carriers, forced PAL to finally push through with the plan.

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