Termination notices sent to 2 600 PAL workers
Post on: 2011-08-26 By: admin
MANILA -- National carrier Philippine Airlines (PAL) has sent termination notices to about 2,600 workers as it starts outsourcing jobs such as catering and passenger handling amid losses, a company official said.
The government-backed outsourcing program, however, will be challenged today, August 26, before the Court of Appeals by the ground workers union PAL Employees Association (Palea).
PAL president Jaime Bautista said after the company's annual stockholders meeting in Manila that workers from the airline's catering, airport services, and call center units will only have until September 30 to stay on their posts.
The retrenched employees, however, can still be employed by the companies PAL has contracted to provide those services. These companies include the Sky Kitchen, which will take over PAL's catering department; Sky Logistics, which will capture the 70-year-old airline's ground and passenger handling; and SPi Global, which will handle the airline's call center reservation department.
The Sky Kitchen and Sky Logistics are owned by Cebuano businessman Manny Osmeña, while the SPi Global is managed by telecommunications mogul Manny Pangilinan.
Bautista said those who signified intention to join the three service providers after the prescribed September 9 deadline will start official duty the next day, October 1.
The layoffs will cut the airline's staff to 5,000 and are part of PAL's survival plan launched in 2010 after it lost $312 million in the previous two years.
So far, the Lucio Tan-led PAL said 400 workers have expressed interest to avail themselves of the package and cross over to the company's third-party partners.
Notices to regional offices
Bautista said the airline also sent notices to the regional offices of the Department of Labor and Employment (Dole) in Manila and Cebu.
Some 250 PAL employees in Cebu and 70 workers Davao are expected to get their separation notices today, Friday.
"We mailed the notice of separation to the provinces on Wednesday. Most likely, the distribution to each affected worker will start tomorrow (Friday)," PAL vice president for corporate communications Joey de Guzman told Sun.Star on Thursday.
"The spin off/outsourcing is a painful but necessary decision to ensure PAL's viability and long term survival. We assure affected workers that they will all receive their separation pay and other benefits," Bautista said.
Court resolution
But Palea, a union for airline employees, has rejected the plan and said it will exhaust all remedies, including seeking a court resolution.
The government has backed the restructuring, but Palea believes the Palace ruling is not executory pending final judicial resolution of the case.
Palea-Mindanao board member Eugene Cosare said the development prompted them to schedule the filing of the case with the Court of Appeals (CA) today, Friday, instead of next week.
"The CA and the Supreme Court are the proper judiciary fora. The presentation of our arguments to the CA is purely interpretation of labor laws, respect for social justice and human rights," he said.
Though Cosare refused to divulge the details of their plea, de Guzman could not ascertain if the union will only present rehashed arguments.
"Honestly, I don't know what they will raise (before the CA)," he told Sun.Star.
For his part, Tex Bulambot, Cebu-Visayas Station board member of the Palea, expressed confidence that his fellow workers will not be cowed by the management's move.
"I believe that no one will sign the document and they are not interested as well to transfer to the service providers tapped by PAL. We will fight for our right to security of tenure up to the Supreme Court," he said.
The same sentiment can also be expected in Davao, said Cosare said in a text message.
At the brink of losing their jobs as well are 25 workers in Cagayan de Oro City, 20 in Zamboanga City, nine each in Dipolog and Cotabato cities, 15 in General Santos City and 11 in Butuan City.
Under the government mandated P2.5-billion early retirement package, the workers are set to receive between P500,000 and over P1 million, depending on the length of service.
Non-monetary benefits such as free tickets, automatic one-year stay in the service provider, and medical insurance were also guaranteed.
Union busting
But Palea said that among others, the impending closure of the so-called non-core units is equivalent to union busting.
The union also scored PAL for violating a provision on the collective bargaining agreement barring the outsourcing of services performed by regular workers.
Palea women's committee head Ginalyn Licayan said they will also request the CA to investigate the real owners of the service providers.
"This will help us prove that what we are stating is true," she said.
Palea president Gerry Rivera said last year that Sky Logistics and Sky Kitchen are in fact owned by Tan and the alleged proprietor, a certain Cebuano businessman Manny Osmeña, is just fronting for the PAL chairman.
"Manny Osmeña is not related to the Osmeña (political clan) of Cebu. He is a Chinese immigrant who acquired Filipino citizenship by naturalization and in the process changed his name to Manny Osmeña. He is a cousin of Tan," he said.
Aside from this, Rivera said that Bautista also has stakes in Sky Logistics, Sky Kitchen and SPi Global.
Bautista of PAL said, however, that contingency measures are in place amid threats of a possible strike by union members. He refused to divulge details.
Benefits for workers
PAL will spend about P2.5 billion for the severance package that includes separation and gratuity pay, trip pass benefits, and one-year extension of medical and hospitalization benefits, among others.
While on appeal before the Office of the President, Dole's ruling was affirmed but slightly modified by increasing the gratuity pay by another P50,000 per worker.
The Lucio Tan-led airline had said that the company's P15-billion losses in 2008 and 2009 necessitated the restructuring program, which includes cutting down on manpower costs.
The airline said it has started conducting town hall-style meetings to help enlighten and answer workers' questions about the spin off/outsourcing program, a move seen by the union as part of PAL's mind-conditioning plan.
The flag carrier commenced implementation of the outsourcing plan after the Office of the President, through Executive Secretary Paquito Ochoa Jr., rendered last August 11 a resolution denying their appeal to stop the spin off.
PAL's outsourcing program was first recognized as legal and valid by acting Labor Secretary Romeo Lagman on June 15, 2010, and affirmed by Baldoz on October 29, 2010.
PAL shares dipped by 4.3 percent to end Thursday's trading at P6.03 each from P6.30 on Wednesday. (With AP/Sunnex)
Related story: Over 300 PAL workers in Cebu, Davao to lose jobs
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